Guess Q2 turnover declines by 41.6 percent

For the second quarter, Guess Inc., recorded GAAP net loss of 20.4 million dollars compared to GAAP net earnings of 25.3 million dollars for the second quarter of fiscal 2020, while GAAP diluted loss per share was 31 cents compared to GAAP diluted earnings per share of 35 cents for the same prior-year quarter. The company said in a statement that adjusted net loss was 0.6 million dollars compared to adjusted net earnings of 27.4 million dollars, while adjusted diluted loss per share was 1 cent compared to adjusted diluted earnings per share of 38 cents for the same prior-year quarter. Total net revenue at Guess decreased 41.7 percent to 398.5 million dollars and in constant currency, net revenue decreased by 41.2 percent.

Commenting on the results, Carlos Alberini, the company’s Chief Executive Officer, said: “The Covid-19 crisis continued to impact our business in the second quarter. We remained focused on managing what was in our control including reducing costs and optimizing inventory management and the use of capital. I believe that our efforts paid off, as we minimized our losses in spite of a 42 percent decrease in our revenues. We are well positioned for the second half of the year.”

Review of second quarter results at Guess

The company added that Americas retail revenues decreased 44.7 percent in U.S. dollars and 44.1 percent in constant currency, while Americas wholesale revenues decreased 51.6 percent in U.S. dollars and 48.7 percent in constant currency. Europe revenues decreased 39.5 percent in U.S. dollars and 39.6 percent in constant currency, while revenues in Asia decreased 39.7 percent in U.S. dollars and 38.7 percent in constant currency. Licensing revenues for the quarter decreased 34.5 percent in U.S. dollars.

The company reported GAAP loss from operations of 14.3 million dollars compared to GAAP earnings from operations of 46 million dollars in the same prior-year quarter. GAAP operating margin in the second quarter decreased 10.3 percent to negative 3.6 percent from 6.7 percent in the same prior-year quarter. For the second quarter, adjusted operating loss was 0.9 million dollars compared to adjusted earnings from operations of 47.9 million dollars in the same prior-year quarter, while adjusted operating margin decreased 720 basis points to negative 0.2 percent from 7 percent in the same prior-year quarter.

Highlights of H1 performance of Guess

For the six months ended August 1, 2020, the company recorded GAAP net loss of 178 million dollars compared to GAAP net earnings of 3.9 million dollars for the six months ended August 3, 2019. GAAP diluted loss per share was 2.72 dollars compared to GAAP earnings per share of 5 cents during the same prior-year period. For the six months, the company recorded adjusted net loss of 119.6 million dollars compared to adjusted net earnings of 7.8 million dollars for the six months ended August 3, 2019, while adjusted diluted loss per share was 1.83 dollars compared to adjusted earnings per share of 10 cents during the same prior-year period. Total net revenue for the period decreased 46 percent to 658.8 million dollars, while in constant currency, net revenue decreased by 45.1 percent. Americas retail revenues decreased 50.8 percent in U.S. dollars and 50.3 percent in constant currency, while Americas wholesale revenues decreased 47.6 percent in U.S. dollars and 45.1 percent in constant currency. The company’s Europe revenues decreased 43.3 percent in U.S. dollars and 42.5 percent in constant currency, while revenues in Asia decreased 46.2 percent in U.S. dollars and 44.7 percent in constant currency and licensing revenues decreased 32.9 percent in U.S. dollars.

The company said, GAAP loss from operations was 176.8 million dollars compared to GAAP earnings from operations of 21.5 million dollars in the same prior-year period, while GAAP operating margin decreased 28.6 percent to negative 26.8 percent, compared to 1.8 percent in the same prior-year period. For the six months ended August 1, 2020, adjusted operating loss was 109.5 million dollars, compared to adjusted earnings from operations of 25.5 million dollars for the six months ended August 3, 2019, while adjusted operating margin decreased 18.7 percent to negative 16.6 percent for the six months ended August 1, 2020, from 2.1 percent in the same prior-year period.

Guess further said that the company’s board of directors has approved the resumption of its quarterly cash dividend program, declaring a cash dividend of 1125 cents per share on the company’s common stock payable on October 2, 2020 to shareholders of record as of the close of business on September 16, 2020.

Picture:Facebook/Guess

 

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