Guess Q4 revenues increase 17.5 percent, up 7.9 percent in FY18

Total net revenue at Guess for the fourth quarter increased 17.5 percent to 792.2 million dollars, and in constant currency, net revenue increased by 10.2 percent. Total net revenue for fiscal 2018 increased 7.9 percent to 2.36 billion dollars and in constant currency, net revenue increased by 5.3 percent.

Commenting on the results, Victor Herrero, the company’s Chief Executive Officer, said in a statement: “I am pleased to report that the overall results of the fourth quarter finished above the high-end of our expectations, with higher sales, higher adjusted operating profit and higher adjusted earnings per share. This quarter concludes a year where we saw revenue increase, operating profit growth, adjusted operating margin expansion and adjusted EPS growth of 52 percent. I believe that this year marks the beginning of a turnaround for the company.”

Highlights of Guess results in Q4

GAAP net earnings of 1 million dollars in the fourth quarter, declined 84.2 percent from 6.6 million dollars for the fourth quarter of fiscal 2017. GAAP diluted earnings per share decreased 87.5 percent to 0.01 dollar from 0.08 dollar in the prior-year quarter. The company estimates the positive impact of currency on diluted earnings per share in the fourth quarter was approximately 0.04 dollar per share.

For the fourth quarter, Guess, Inc. reported adjusted net earnings of 51.3 million dollars, a 40.2 percent increase compared to 36.6 million dollars for the fourth quarter of fiscal 2017, while adjusted diluted earnings per share increased 44.2 percent to 0.62 dollar, compared to 0.43 dollar for the prior-year quarter.

Americas retail revenues decreased 6.1 percent in US dollars and 7.2 percent in constant currency. Retail comp sales including e-commerce decreased 4 percent in US dollars and 5 percent in constant currency. Americas wholesale revenues increased 3.8 percent in US dollars and 0.9 percent in constant currency.

Revenues in Europe increased 39.7 percent in US dollars and 24.1percent in constant currency. Retail comp sales including e-commerce increased 18 percent in US dollars and 6 percent in constant currency. Asia revenues increased 40.2 percent in US dollars and 33.1percent in constant currency, while retail comp sales including e-commerce increased 14 percent in US dollars and 8 percent in constant currency. Licensing revenues increased 11.4 percent in US dollars and constant currency.

GAAP operating earnings increased 225.9 percent to 68.4 million dollars including a 7.1 million dollars favourable currency translation impact, compared to 21 million dollars in the prior-year quarter. GAAP operating margin in the fourth quarter increased 550 basis points to 8.6 percent driven by lower asset impairment charges. The positive impact of currency on operating margin for the quarter was roughly 80 basis points. Adjusted operating earnings increased 31.2 percent to 70.7 million dollars and adjusted operating margin was 8.9 percent, an increase of 90 basis points compared to the same prior-year quarter.

FY18 revenues rise 7.9 percent at Guess

For the fiscal year, the company recorded GAAP net loss of 7.9 million dollars compared to GAAP net earnings of 22.8 million dollars last year. GAAP diluted loss per share was 0.11 dollar in fiscal 2018, compared to GAAP diluted earnings per share of 0.27 dollar in the prior year. The company estimates the positive impact of currency on diluted loss per share for the fiscal year was approximately 0.02 dollar per share.

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For the fiscal year ended February 3, 2018, the company recorded adjusted net earnings of 58.4 million dollars, a 50.6 percent increase, while adjusted diluted earnings per share increased 52.2 percent to 0.70 dollar in fiscal 2018, compared to 0.46 dollar for the prior year.

Americas retail revenues decreased 10.9 percent in US dollars and 11.4 percent in constant currency, while retail comp sales including e-commerce decreased 9 percent in US dollars and 10 percent in constant currency. Americas wholesale revenues increased 2.8 percent in US dollars and 2 percent in constant currency.

Europe revenues increased 26.7 percent in US dollars and 20.6 percent in constant currency, while retail comp sales including e-commerce increased 11percent in US dollars and 6 percent in constant currency. Revenues in Asia increased 24.3 percent in US dollars and 22.1percent in constant currency, and retail comp sales including e-commerce increased 8 percent in US dollars and 5 percent in constant currency. Licensing revenues increased 1.2 percent in US dollars and constant currency.

GAAP operating earnings for fiscal 2018 increased 187 percent to 65.2 million dollars including an 8.1 million dollars favourable currency translation impact, while GAAP operating margin increased 180 basis points to 2.8 percent. The positive impact of currency on operating margin for fiscal 2018 was roughly 30 basis points. Adjusted operating earnings increased 36.1percent to 85 million dollars, compared to 62.5 million dollars in the prior year. Adjusted operating margin was 3.6 percent, an increase of 70 basis points compared to the prior year.

Q1 sales expected to rise between 11 to 12.5 percent

For the first quarter of fiscal year 2019, Guess expects Consolidated net revenue in US dollars to increase between 11 percent and 12.5 percent, while on constant currency basis, revenues are expected to increase between 5.5 percent and 7 percent. Guess forecasts loss per share to range between 0.27 dollar to 0.24 dollar against earning of 0.86 dollar to 0.98 dollar in the first quarter of last 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 payable on April 20, 2018 to shareholders of record at the close of business on April 4, 2018.

Picture:Guess website

 

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