Guess surprises with strong sales and profit growth

Thanks to a strong final quarter, the US fashion group Guess Inc. was able to exceed market expectations in the 2023/24 financial year. On Wednesday evening, the company also announced the prospect of double-digit sales growth for the current year.

In the past financial year, which ended on 3 February, group sales reached 2.78 billion dollars. This exceeded the previous year's level by 3 percent. The clothing supplier was able to more than compensate for losses in America with strong growth in Europe (+7 percent) and Asia (+16 percent).

In the final quarter, the company increased its pace of growth considerably. Compared to the same period last year, revenue rose by nine per cent to 890.4 million dollars. Even in the long-weakening American market, sales increased both in the wholesale business (+44 percent) and in the company's own retail business (+1 percent).

Net profit increases by 32 percent

The group was able to increase its operating profit by 6 percent to 263.3 million dollars, not least thanks to sales growth, higher sales prices and positive one-off effects. Adjusted for one-off factors, however, the operating result fell by 3 percent due to higher costs. Net profit attributable to shareholders amounted to 198.2 million dollars, exceeding the previous year's level by 32 percent.

For the current financial year 2024/25, the management is now forecasting revenue growth of 11.5 to 13.5 percent. The forecast also includes the expected contributions from the Rag & Bone brand, the acquisition of which was announced in February and is due to be finalised soon. However, diluted earnings per share adjusted for special effects, which totalled 3.14 dollars last year, are expected to fall to between 2.56 and USD 3.00 dollars.