Guess? Q1 revenues down, but Asia rebounds
American retailer Guess? has reported its financial results for Q1 ended April 29, 2023, which it said had “exceeded” expectations despite a fall in net revenue.
The company saw a 4 percent decrease in its total net revenue for FY24, dropping from 593.5 million dollars to 569.8 million dollars, with its Americas wholesale declining 25 percent and retail decreasing 14 percent.
While its European revenues rose 2 percent, its growth was largely driven by Asia, where revenues increased 26 percent.
Speaking on this, Carlos Alberini, chief executive officer, said in a release: “Our international businesses were particularly strong during the quarter. This performance, coupled with strong cost controls and solid product margin performance, helped to more than offset softness in our Americas Retail business as a result of slower customer traffic into our stores.
“I believe that our results this quarter highlight the power of our highly diversified business model and the strength of our brands and global distribution.”
The company recorded a net loss of 11.8 million dollars compared to the eight million dollars in the same period for the year prior, while its diluted net loss per share was 22 cents, compared to 12 cents the previous year.
CEO reaffirms positive outlook for year
Its adjusted net loss was 3.5 million dollars, down from 15.2 million dollars, while its loss from operations was 0.9 million dollars, compared to its previous 36.4 million dollars.
Guess’ operating margin was reported to have decreased from 6.1 percent to negative 0.2 percent, driven primarily by higher costs, lower government subsidies and the unfavourable impact of currency. Its adjusted earnings from operations decreased 95 percent to 1.9 million dollars.
The report comes as Guess? continues to implement a brand elevation strategy, which Paul Marciano, co-founder and chief creative officer, said had touched “almost every aspect” of the business.
Marciano added: “Through these efforts, we have transformed our company and positioned our brands to continue to gain market share and deliver profitable growth. I am very proud of our teams and couldn’t be more excited about our future.”
Meanwhile, CEO Alberini, reaffirmed the brand’s positive outlook for the year, noting that it would “continue to see topline growth in the low single digits”, as well as solid profit performance and strong cash flow generation.