US' Guess posts revenue increase of 3% to $2.78 bn in FY24

GAAP net earnings saw a remarkable 32 per cent increase, rising to $198.2 million from $149.6 million in fiscal 2023. Diluted earnings per share (EPS) experienced a significant 42 per cent increase to $3.09 for fiscal 2024, up from $2.18 in the preceding year, the company said in a press release.

Adjustments to the earnings accounted for a notable increase with adjusted net earnings climbing 8 per cent to $174.0 million from $161.1 million in fiscal 2023. Correspondingly, adjusted diluted EPS rose by 15 per cent to $3.14, compared to $2.74 in the prior year.

Geographically, Europe led with a 7 per cent increase in revenues in both US dollars and constant currency, accompanied by a strong 9 per cent rise in retail comparable sales. In contrast, the Americas retail sector faced a downturn, with revenues decreasing by 6 per cent and retail comparable sales falling by 5 per cent in US dollars. The wholesale revenues in the Americas followed this trend with a 3 per cent decline.

Asia’s market, however, told a different story with a significant 16 per cent revenue increase in US dollars and an 18 per cent surge in constant currency. Nevertheless, retail comparable sales saw a 2 per cent decrease in US dollars, but managed a 1 per cent increase in constant currency. Licensing revenues added to the positive news with a 9 per cent increase.

Operational earnings also reflected the company's healthy fiscal stance. GAAP earnings from operations for fiscal 2024 went up by 6 per cent to $263.3 million from $248.2 million in fiscal 2023. Conversely, adjusted earnings from operations saw a slight decrease of 3 per cent to $255 million.

Focusing on the fourth quarter of fiscal 2024 (Q4 FY24), net revenue shot up by 9 per cent to $891.1 million, supported once more by the favourable additional week in the quarter. GAAP net earnings for the quarter jumped by 20 per cent to $115.3 million, and GAAP diluted EPS also increased by 20 per cent to $1.71. The company's adjusted net earnings for the quarter rose by 13 per cent to $110.8 million, with adjusted diluted EPS seeing a 16 per cent hike to $2.01.

“We are very pleased with our fourth quarter results, which exceeded our expectations for revenues, operating earnings and earnings per share, and capped an outstanding year for our company. Our disciplined approach in managing the business enabled us to deliver $330 million of operating cash flow and $248 million of free cash flow and end the year with a cash position of $360 million, well ahead of our expectations,” said Carlos Alberini, chief executive officer.

Fibre2Fashion News Desk (DP)