Guess loss widens despite cross-region revenue gains
today Jun 8, 2019
Los Angeles-based apparel brand Guess?, Inc. announced improved revenues in all of its geographies during the first quarter of 2020 on Thursday, but saw its net loss expand.
The company’s net revenue increased 3.0% in the first quarter ended May 4, 2019, totaling $536.7 million, compared to $521.3 million in the prior-year period. In constant currencies, net revenue increased by 8.2%.
In the Americas, Guess retail revenues increased 3% (3.9% in constant currencies), while comps rose 4%. Wholesale revenues in the region increased 13.6%.
European revenues rose 2.2%, or 12.3% in constant currencies. Retail comps in the region, including e-commerce, decreased 1% but increased 8% in constant currencies. As for Asia, revenues increased 1.4% (6.6% in constant currencies), despite a decrease of 15% in retail comps (10% in constant currencies).
The company’s licensing revenues fell 4.9% during the period.
Guess’ first-quarter net loss totaled $21.4 million, a 0.7% decline from the loss of $21.2 million reported in Q1 2019. The company’s diluted loss per share remained flat at $0.27.
“I am pleased with our progress this period, as we had another quarter of solid performance with strong revenue growth, improved gross margins and well managed expenses,” said Guess CEO Carlos Alberini in a release. “I couldn’t be more excited about our Company’s future. Guess today has a powerful global network, significant brand relevancy and is attracting a new generation of young customers who love our brand. We continue to see significant white space to grow globally and our opportunities to improve operations and reduce costs are very material. I am confident that our potential to create significant shareholder value is strong.”
Alberini stepped into his current role in January and has since revealed plans to double down on Guess’ presence in the denim market in an attempt to orchestrate a return to the golden age of the company’s iconic product.
Looking forward to the second quarter, Guess expects to report a net revenue increase of between 4% and 5%, and EPS in the range of $0.24 to $0.27. In fiscal 2020, annual net revenue is predicted to see a rise of between 3.5% and 4.5%, while EPS is expected to total $1.09 to $1.20.
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