Guess Inc. faced a decline in revenues during the first quarter of the year, primarily due to weaker sales in the Americas. However, the brand experienced a surge in retail sales in Asia, partially offsetting the overall decrease. Based in Los Angeles, the company reported a 14% drop in retail revenues in the Americas, with retail comp sales, including e-commerce, declining by 12%. Additionally, Americas wholesale revenues decreased by 25% and licensing revenues fell by 10%. On the other hand, Europe saw a 2% increase in revenues, with retail comp sales, including e-commerce, rising by 10%. Meanwhile, Asia experienced a significant surge of 26% in revenues, with retail comp sales in the Asian market, including e-commerce, increasing by 1%.

For the three months ending on April 29, Guess saw a net loss of $11.8 million, compared to net earnings of $8 million in the same quarter of the previous year. The diluted net loss per share for the first quarter was $0.22, in contrast to diluted net earnings per share of $0.12 in the same quarter of the prior year. Carlos Alberini, the CEO of Guess, expressed satisfaction with the first quarter financial results as they exceeded expectations for revenues, operating margin, and earnings per share. Alberini highlighted the strength of the brand’s international businesses, which helped offset the weak performance in the Americas retail business. He emphasized the power of Guess’s highly diversified business model and the strength of its brands and global distribution.

Looking ahead, Guess expects net revenues to grow between 2% and 4% for fiscal 2024, with diluted earnings per share ranging between $2.01 and $2.25 for the year. Alberini expressed confidence in the company’s prospects and reaffirmed a positive outlook for the year. He stated that Guess aims to achieve low single-digit topline growth, solid profit performance, and strong cash flow generation in fiscal 2024. Alberini also highlighted the successful refinancing of convertible bonds, which has provided additional financial capacity and extended debt maturities. The company maintains a strong capital structure and remains committed to rewarding shareholders with solid returns. In line with this commitment, Guess recently repurchased 2.2 million shares of its stock and approved a 33% increase in the quarterly dividend. The company is optimistic about its future and confident in its teams’ ability to execute plans effectively and capitalize on growth and value creation opportunities.

Useful links:
1. Guess Inc. Official Website
2. Guess Inc. Stock Market Information