Guess reports Q3 GAAP net loss of 2.9 mn dollars

Guess, for its third quarter ended October 28, 2017 reported GAAP net loss of 2.9 million dollars compared to GAAP net earnings of 9.1 million dollars for the same quarter of fiscal 2017. GAAP diluted loss per share was 0.04 dollar compared to GAAP diluted earnings per share of 0.11 dollar for the prior-year quarter. Adjusted net earnings for the quarter were 10.4 million dollars, an 8.1 percent increase compared to 9.6 million dollars for the third quarter of fiscal 2017 and adjusted diluted earnings per share increased 9.1 percent to 0.12 dollar.

Commenting on the results, Victor Herrero, the company’s Chief Executive Officer, said in a media release, “Overall, our third quarter adjusted operating profit finished within our expectations, and adjusted earnings per share ended above the high-end of our guidance. We continue to see good momentum in Europe and Asia, where our revenues were up 19 percent and 17 percent, respectively, mainly driven by new store openings, wholesale growth and positive comp sales.”

Third quarter net revenue increase 3.3 percent

Total net revenue for the third quarter of fiscal 2018 increased 3.3 percent to 554.1 million dollars. In constant currency, net revenue increased by 0.6 percent.

Americas Retail revenues decreased 13.4 percent in US dollars and 14.3 percent in constant currency. Retail comp sales including e-commerce decreased 10 percent in US dollars and 11 percent in constant currency.

Europe revenues increased 18.8 percent in US dollars and 11.9 percent in constant currency, while retail comp sales including e-commerce increased 10 percent in US dollars and 4 percent in constant currency.

Revenues in Asia increased 16.8 percent in US dollars and 18.5 percent in constant currency. Retail comp sales including e-commerce increased 3 percent in US dollars and 5 percent in constant currency.

Americas Wholesale revenues decreased 2.5 percent in US dollars and 4.5 percent in constant currency. The company’s licensing revenues increased 9.1 percent in US dollars and constant currency.

GAAP operating loss for the third quarter was 1 million dollars compared to GAAP operating earnings of 15.1 million dollars in the prior-year quarter. GAAP operating margin in the third quarter decreased 300 basis points to negative 0.2 percent, from 2.8 percent in the prior-year quarter. The negative impact of currency on operating margin for the quarter was around 10 basis points.

For the quarter, adjusted operating earnings decreased 21.1 percent to 12.6 million dollars and adjusted operating margin was 2.3 percent, a decrease of 70 basis points compared to the same prior-year quarter.

Guess nine-month period GAAP net loss at 8.9 mn dollars

For the nine months ended October 28, 2017, the company recorded GAAP net loss of 8.9 million dollars, compared to GAAP net earnings of 16.2 million dollars for the nine months ended October 29, 2016. GAAP diluted loss per share was 0.12 dollar compared to GAAP diluted earnings per share of 0.19 dollar for the prior-year period.

Adjusted net earnings for the period were 7.1 million dollars, a 223.3 percent increase compared to 2.2 million dollars for the nine months ended October 29, 2016. Adjusted diluted earnings per share increased 300 percent to 0.08 dollar.

Total net revenue for the first nine months increased 3.7 percent to 1.59 billion dollars and in constant currency, net revenue increased by 3.1 percent. Americas retail revenues decreased 13.1 percent in US dollars and 13.2 percent in constant currency. Retail comp sales including e-commerce decreased 12 percent in US dollars and constant currency. Americas Wholesale revenues increased 2.5 percent in US dollars and 2.3 percent in constant currency.

Europe revenues increased 20.5 percent in US dollars and 19 percent in constant currency. Retail comp sales including e-commerce increased 7 percent in US dollars and 6 percent in constant currency.

Asia revenues increased 17 percent in US dollars and 17.1 percent in constant currency, while retail comp sales including e-commerce increased 4 percent in US dollars and constant currency. Licensing revenues were relatively flat in US dollars and constant currency.

GAAP operating loss for the first nine months of fiscal 2018 was 3.2 million dollars and GAAP operating margin decreased 30 basis points to negative 0.2 percent. Adjusted operating earnings increased 66.7 percent to 14.3 million dollars and adjusted operating margin was 0.9 prcent for the nine months ended October 28, 2017, an increase of 30 basis points compared to the same prior-year period.

Guess reveals Q4 and full year outook

For the fourth quarter and full year 2018, Guess expects consolidated net revenues in US dollars to increase between 10 percent and 12 percent and between 6 percent and 6.5 percent respectively. In constant currency, net revenues are expected to increase between 5 percent and 7 percent and between 4 percent and 4.5 percent respectively. GAAP EPS for the fourth quarter is expected to be between 0.48 and 0.55 dollar and between 0.36 to 0.43 dollar for the full year, while adjusted EPS for the quarter is anticipated to range between 0.48 to 0.55 dollars and between 0.56 and 0.63 dollar for the full year.

The company’s board of directors has approved a quarterly cash dividend of 0.225 dollar per share on the company’s common stock.

Picture:Facebook/Guess