American brand Guess' revenue increases 4% in Q1 FY25

The company recorded GAAP net earnings of $13 million, a significant turnaround from a GAAP net loss of $11.8 million in the same prior-year quarter. GAAP diluted net earnings per share (EPS) were $0.23, compared to a GAAP diluted net loss per share of $0.22 for the same period last year.

Adjusted net loss for the first quarter of fiscal 2025 was $13.8 million, compared to $3.5 million for the same prior-year quarter. Adjusted diluted net loss per share was $0.27, compared to $0.07 in the same prior-year quarter, the company said in a press release.

In terms of regional performance, Europe revenues increased by 1 per cent in US dollars and 7 per cent in constant currency, with retail comparable sales (including e-commerce) rising by 4 per cent in US dollars and 9 per cent in constant currency. Americas retail revenues remained flat in both US dollars and constant currency, while retail comparable sales (including e-commerce) decreased by 7 per cent in US dollars and 8 per cent in constant currency. The inclusion of e-commerce sales positively impacted the retail comparable sales percentage by 1 per cent in US dollars and 2 per cent in constant currency.

Americas wholesale revenues saw a substantial increase of 21 per cent in US dollars and 18 per cent in constant currency. In Asia, revenues increased by 3 per cent in US dollars and 7 per cent in constant currency, although retail comparable sales (including e-commerce) decreased by 9 per cent in US dollars and 5 per cent in constant currency. The inclusion of e-commerce sales positively impacted the retail comparable sales percentage by 1 per cent in US dollars and 2 per cent in constant currency. Licensing revenues increased by 21 per cent in both US dollars and constant currency.

Guess reported a GAAP loss from operations of $19.9 million for the first quarter of fiscal 2025, compared to a GAAP loss of $0.9 million in the same prior-year quarter. The GAAP operating margin for the first quarter decreased to negative 3.4 per cent, down from negative 0.2 per cent in the same period last year. The adjusted loss from operations was $7.7 million, compared to adjusted operating earnings of $1.9 million in the same prior-year quarter. The adjusted operating margin decreased to negative 1.3 per cent, down from 0.3 per cent in the prior-year quarter.

“We are very pleased with our first quarter results, which exceeded our expectations for revenues and earnings per share. I believe our strong results this quarter once again highlight the power of our diversified business model and the strength of our brand and our global distribution,” said Carlos Alberini, chief executive officer.

Fibre2Fashion News Desk (DP)