Guess reports steep drop in Q3 earnings

Guess, Inc. third quarter net earnings of 21.8 million dollars, declined 26.9 percent and GAAP diluted net earnings per share decreased 24.4 percent to 34 cents.

The company’s adjusted net earnings were 24.7 million dollars, a 40.4 percent decrease and adjusted diluted EPS decreased 29 percent to 44 cents, compared to the same prior-year quarter.

Total net revenue for the third quarter decreased 2 percent to 633.4 million dollars, while in constant currency, net revenue increased by 10 percent.

For the fourth quarter of fiscal 2023, Guess expects revenues to be down around 3.5 percent in U.S. dollars and up 3.5 percent in constant currency, while full year revenues are expected to be up around 2 percent in U.S. dollars and 10.5 percent in constant currency versus fiscal 2022.

Commenting on the results, Carlos Alberini, the company’s CEO said: “Our revenues decreased by almost 2 percent in U.S. dollars but grew 10 percent in constant currency, driven primarily by the strength of our business in Europe. For the period, we managed the business well and delivered an 8.6 percent operating margin and 55 million dollars in operating profit.”

Alberini added saying: “We are well positioned for our holiday period. Our updated outlook for the fiscal year reflects these trends and the impact of further currency headwinds.”

Highlights of Guess’ performance across markets

The company said, Americas retail revenues decreased 2 percent in U.S. dollars and 1 percent in constant currency, while retail comp sales, including e-commerce, decreased 1 percent in U.S. dollars and remained relatively flat in constant currency. Americas wholesale revenues decreased 10 percent in U.S. dollars and 9 percent in constant currency.

Europe revenues decreased 2 percent in U.S. dollars and increased 17 percent in constant currency, while retail comp sales, including e-commerce, decreased 8 percent in U.S. dollars and increased 9 percent in constant currency.

Asia revenues increased 10 percent in U.S. dollars and 28 percent in constant currency, while retail comp sales, including e-commerce, decreased 2 percent in U.S. dollars and increased 13 percent in constant currency.

Licensing revenues increased 4 percent in U.S. dollars and constant currency.

Guess posts drop in nine month earnings

For the nine months ended October 29, 2022, the company recorded GAAP net earnings of 53.8 million dollars, a 47.8 percent decrease, while GAAP diluted EPS decreased 48.4 percent to 80 cents for the period.

The company recorded adjusted net earnings of 62.9 million dollars for the period, a 47.4 percent decrease and adjusted diluted EPS decreased 40.8 percent to 1.06 dollars.

Total net revenue for the nine months increased 4 percent to 1.87 billion dollars, while in constant currency, net revenue increased by 14 percent.

Americas retail revenues remained consistent in U.S. dollars and increased 1 percent in constant currency, while retail comp sales, including e-commerce, decreased 2 percent in U.S. dollars and 1% in constant currency. Americas Wholesale revenues increased 11 percent in U.S. dollars and 12 percent in constant currency.

Europe revenues increased 5 percent in U.S. dollars and 21 percent in constant currency, while retail comp sales, including e-commerce, decreased 6 percent in U.S. dollars and increased 8 percent in constant currency.

Asia revenues increased 5 percent in U.S. dollars and 17 percent in constant currency, while retail comp sales, including e-commerce, decreased 5 percent in U.S. dollars and increased 5 percent in constant currency.

Licensing revenues increased 13 percent in U.S. dollars and constant currency.

The company’s board of directors approved a quarterly cash dividend of 0.225 cents per share on the company’s common stock payable on December 23, 2022 to shareholders of record as of the close of business on December 7, 2022.