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Guess revenues increase but earnings decline

By Prachi Singh

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Business

Image: Guess

For the second quarter, Guess?, Inc. reported total net revenue increased 2 percent to 642.7 million dollars, while in constant currency, net revenue increased by 12 percent.

Total net revenue for the six months ended July 30, 2022 increased 8 percent to 1.24 billion dollars and in constant currency, net revenue increased by 16 percent compared to the same period last year.

Commenting on the trading update, Carlos Alberini, the company’s chief executive officer, said: “We are pleased with our second quarter results that exceeded our revenue and operating earnings expectations in a challenging retail environment.For the second half of the year, we have adjusted our outlook to reflect our current trends and the impact of existing macro-economic headwinds, including currency.”

Highlights of Q2 results at Guess

For the second quarter of fiscal 2023, the company recorded GAAP net earnings of 24 million dollars, a 60.8 percent decrease from the same prior-year quarter. GAAP diluted net earnings per share (EPS) decreased 61.5 percent to 35 cents.

The company’s adjusted net earnings were 22.9 million dollars, a 64.3 percent decrease from the same prior-year quarter. Adjusted diluted EPS decreased 59.4 percent to 39 cents.

For the second quarter, Americas retail revenues decreased 2 percent in U.S. dollars and constant currency. Retail comp sales, including e-commerce, decreased 6 percent in U.S. dollars and 5 percent in constant currency.

Americas wholesale revenues increased 1 percent in U.S. dollars and 2 percent in constant currency.

Europe revenues increased 4 percent in U.S. dollars and 21 percent in constant currency, while retail comp sales, including e-commerce, decreased 4 percent in U.S. dollars and increased 10 percent in constant currency.

Revenues in Asia increased 3 percent in U.S. dollars and 15 percent in constant currency and retail comp sales, including e-commerce, decreased 2 percent in U.S. dollars and increased 10 percent in constant currency.

The company’s licensing revenues increased 13 percent in U.S. dollars and constant currency.

Guess H1 earnings drop 56.3 percent

For the six months ended July 30, 2022, the company recorded GAAP net earnings of 31.9 million dollars, a 56.3 percent decrease from the same prior-year period. GAAP diluted EPS decreased 58.2 percent to 46 cents.

The company’s adjusted net earnings of 38.1 million dollars, decreased 51.1 percent, while adjusted diluted EPS decreased 47 percent to 62 cents compared to the same prior-year period.

Americas retail revenues increased 2 percent in U.S. dollars and constant currency and retail comp sales, including e-commerce, decreased 2 percent in both U.S. dollars and constant currency.

Americas wholesale revenues increased 24 percent in U.S. dollars and 25 percent constant currency.

Europe revenues increased 9 percent in U.S. dollars and 23 percent in constant currency and retail comp sales, including e-commerce, decreased 5 percent in U.S. dollars and increased 8 percent in constant currency.

Asia revenues increased 2 percent in U.S. dollars and 11 percent in constant currency, while retail comp sales, including e-commerce, decreased 6 percent in U.S. dollars and increased 2 percent in constant currency.

The company’s licensing revenues increased 18 percent in U.S. dollars and constant currency.

Guess adjusts outlook

For the third quarter of fiscal 2023, Guess expects revenues to be down around 4.5 percent in U.S. dollars and up 4.5 percent in constant currency versus the third quarter of fiscal 2022.

For the full fiscal year 2023, the company expects revenues to be up around 1.5 percent in U.S. dollars and 9.5 percent in constant currency versus fiscal 2022.

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

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