Guess manages to narrow adjusted net loss in Q1

Guess, Inc. for its first quarter ended May 5, 2018 recorded GAAP net loss of 21.2 million dollars, a 0.3 percent improvement compared to 21.3 million dollars for the first quarter of fiscal 2018. GAAP diluted loss per share deteriorated 3.8 percent to 0.27 dollar from 0.26 dollar for the prior-year quarter. The company estimates that currency had a negative impact on diluted loss per share of 0.03 dollar in the first quarter. Adjusted net loss was 17.8 million dollars, a 7.9 percent improvement compared to 19.4 million dollars for the first quarter of fiscal 2018. Adjusted diluted loss per share improved 4.2 percent to 0.23 dollars, compared to 0.24 dollar for the prior-year quarter.

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Commenting on the first quarter trading, Victor Herrero, the company’s Chief Executive said in a media release: “I am pleased to report that our first quarter results finished above the high-end of our expectations for revenues, adjusted operating margin and adjusted earnings per share. Overall, I am very excited by the continued momentum, as the first quarter marks the seventh consecutive quarter of revenue growth for the company.”

Guess first quarter net revenue rises 14.7 percent

Total net revenue for the first quarter increased 14.7 percent to 521.3 million dollars compared to 454.3 million dollars in the prior-year quarter. In constant currency, net revenue increased by 7.7 percent.

Americas retail revenues decreased 1.4 percent in US dollars and 2.1 percent in constant currency. Retail comp sales including e-commerce increased 2 percent in US dollars and 1percent in constant currency. Americas wholesale revenues increased 13.4 percent in US dollars and 11.3 percent in constant currency.

Europe revenues increased 24.2 percent in US dollars and 9.1 percent in constant currency. Retail comp sales including e-commerce increased 15 percent in US dollars and 1 percent in constant currency. Asia revenues increased 32.6 percent in US dollars and 25.1 percent in constant currency. Retail comp sales including e-commerce increased 22 percent in US dollars and 15 percent in constant currency. Licensing revenues increased 23.5 percent in US dollars and constant currency.

Other financial highlights of Guess’s Q1

GAAP operating loss for the quarter improved 0.3 percent to 24.9 million dollars (including a 4 million dollars unfavorable currency translation impact), compared to 25 million dollars in the prior-year quarter. GAAP operating margin in the first quarter improved 70 basis points to negative 4.8 percent, compared to negative 5.5 percent in the prior-year quarter.

For the first quarter, adjusted operating loss improved 7.8 percent to 20.5 million dollars compared to 22.2 million dollars in the same prior-year quarter. Adjusted operating margin was negative 3.9 percent, an improvement of 100 basis points compared to the same prior-year quarter.

Guess updates outlook for FY19

The company’s expectations for the second quarter ending August 4, 2018 and its updated outlook for the fiscal year ending February 2, 2019 includes consolidated net revenue in US dollars to increase between 14 percent and 15.5 percent for the second quarter and increase between 8.5 percent and 9.5 percent for the full year. In constant currency, the company expects second quarter consolidates revenues to increase between 11 percent to 12.5 percent, while full year net revenue is expected to rise between 6.5 percent to 7.5 percent.

GAAP operating margin is expected to improve 5 percent to 5.5 percent for the second quarter and between 4.1 percent to 4.5 percent for the full year. Adjusted operating margin is expected to improve 5 percent to 5.5 percent in the second quarter and 4.2 percent to 4.6 percent for the full year. Second quarter GAAP EPS is expected to range between 0.27 dollar to 0.30 dollars and full year GAAP EPS between 0.84 dollar to 0.95 dollar. Adjusted EPS for the second quarter is anticipated to range between 0.27 dollar to 0.30 dollars and full year adjusted EPS between 0.88 dollar to 0.99 dollar.

The company’s board of directors has approved a quarterly cash dividend of 0.225 dollar per share on the company’s common stock, payable on June 29, 2018 to shareholders of record at the close of business on June 13, 2018.

Picture:Guess website

 

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