Guess sales and earnings rise in the third quarter

For the third quarter, Guess recorded GAAP net earnings of 55.7 million, a 155 percent increase from the same prior-year quarter. GAAP diluted net earnings per share increased 141 percent to 82 cents.

For the quarter under review, the company’s adjusted net earnings were 27 million dollars, a 9 percent versus the same prior-year quarter, while adjusted diluted EPS increased 11 percent to 49 cents.

Net revenue for the quarter increased 3 percent to 651.2 million dollars, while in constant currency, net revenue increased by 1 percent.

Commenting on the trading update, Carlos Alberini, chief executive officer of Guess, said: “During the period, we managed the business well and delivered strong gross margin and effective cost performance, which resulted in GAAP and adjusted operating margins of 8.4 percent and 8.9 percent, respectively, ahead of our expectations for the quarter.”

Guess delivers sales growth in Europe, Asia but decline in the Americas

The company’s Europe revenues increased 6 percent in U.S. dollars and 5 percent in constant currency. Retail comparable sales including e-commerce increased 8 percent in U.S. dollars and 7 percent in constant currency.

Sales in the Americas decreased 7 percent in U.S. dollars and 8 percent in constant currency. Retail comparable sales including e-commerce decreased 5 percent in both U.S. dollars and constant currency. Americas wholesale revenues increased 4 percent in U.S. dollars and decreased 1 percent in constant currency.

Asia revenues increased 2 percent in U.S. dollars and remained flat in constant currency. Retail comparable sales including e-commerce decreased 8 percent in U.S. dollars and 9 percent in constant currency.

Licensing revenues for the third quarter increased 19 percent in U.S. dollars and constant currency.

Guess reports increase in sales and earnings

For the nine months ended October 28, 2023, the company recorded GAAP net earnings of 82.9 million dollars, a 54 percent versus the same prior-year period. GAAP diluted EPS increased 63 percent to 1.30 dollars for the nine months, while adjusted net earnings of 63.2 million dollars, rose 1 percent. Adjusted diluted EPS increased 8 percent to 1.14 dollars.

Net revenue for the nine months increased 1 percent to 1.89 billion dollars, while in constant currency, net revenue also increased by 1 percent. Europe revenues increased 6 percent in both U.S. dollars and constant currency and retail comparable sales including e-commerce increased 10 percent in both U.S. dollars and constant currency.

The Americas retail revenues decreased 9 percent in U.S. dollars and 10 percent in constant currency. Retail comparable sales including e-commerce decreased 8 percent in both U.S. dollars and constant currency. The Americas Wholesale revenues decreased 12 percent in U.S. dollars and 15 percent in constant currency.

Asia revenues increased 15 percent in U.S. dollars and 18 percent in constant currency. Retail comparable sales including e-commerce decreased 1 percent in U.S. dollars and increased 1 percent in constant currency.

Licensing revenues increased 8 percent in both U.S. dollars and constant currency.

Guess announces Q4 and FY24 estimates

The company said, consolidated net revenue in U.S. dollars are expected to increase between 4 percent and 6 percent for the fourth quarter and increase between 1.8 percent and 2.4 percent for fiscal 2024.

GAAP operating margin is expected to range between 14.1 percent to 14.4 percent for the fourth quarter and between 8.7 percent to 8.9 percent for the full year, while fourth quarter adjusted operating margin is expected to range between 14.1 percent and 14.4 percent and between 8.9 percent and 9.1 percent for the fiscal year.

The company forecasts fourth quarter GAAP diluted EPS to be between 1.22 dollars to 1.28 dollars and between 2.49 dollars to 2.55 dollars for the full year, while adjusted diluted EPS is anticipated to be between 1.53 dollars to 1.60 dollars for the quarter and 2.67 dollars to 2.74 dollars for the whole year.

“We are taking a more cautious view for our fourth quarter outlook and now expect to deliver net revenue growth of 2 percent and an operating margin of roughly 9 percent for the fiscal year,” added Alberini.

The company’s board of directors has approved a quarterly cash dividend of 30 cents per share payable on December 22, 2023 to shareholders of record as of the close of business on December 6, 2023.