American brand Guess' revenue soars 7% to $1.32 bn in H1 FY25

Guess, Inc, a leading American fashion brand, has reported a total net revenue increase of 7 per cent for the first half of fiscal 2025, reaching $1.32 billion, compared to $1.23 billion during the same period last year. On a constant currency basis, net revenue increased by 10 per cent.

Regionally, Europe saw a 3 per cent revenue increase in US dollars and 8 per cent in constant currency. The Americas retail segment experienced a 5 per cent revenue growth in both US dollars and constant currency, while the Americas Wholesale segment reported a significant 54 per cent increase in US dollars and 53 per cent in constant currency. Asia, however, faced a 2 per cent decline in revenue in US dollars, though it managed a 2 per cent increase in constant currency. Licensing revenues rose by 12 per cent in both US dollars and constant currency, the company said in a press release.

Despite the revenue growth, Guess's earnings from operations for the first half of fiscal 2025 saw a sharp decline. GAAP earnings from operations dropped by 56.2 per cent to $27.9 million, compared to $63.7 million in the same period last year. The GAAP operating margin decreased by 3.1 percentage points, falling to 2.1 per cent from 5.2 per cent in the prior-year period. On an adjusted basis, earnings from operations decreased by 54.8 per cent to $30.3 million, down from $66.9 million last year, with the adjusted operating margin also decreasing by 3.1 percentage points to 2.3 per cent from 5.4 per cent.

In the second quarter of fiscal 2025 (Q2 FY25), Guess reported total net revenue of $732.6 million, a 10 per cent increase from $664.5 million in the same quarter last year. On a constant currency basis, net revenue increased by 13 per cent. Despite the revenue growth, the company recorded a GAAP net loss of $10.6 million for the quarter, compared to GAAP net earnings of $39 million in the same period last year. GAAP diluted net loss per share was $0.28, a significant drop from GAAP diluted net earnings per share of $0.59 in the prior-year quarter.

On an adjusted basis, Guess's net earnings for the second quarter were $23.0 million, representing a 42 per cent decrease from $39.7 million in the same quarter last year. Adjusted diluted EPS also decreased by 42 per cent to $0.42, down from $0.72 in the prior-year quarter. The company noted that its share buybacks and currency fluctuations each had a positive impact of $0.01 on adjusted diluted EPS for the quarter, the release added.

The company's earnings from operations in the second quarter of fiscal 2025 declined by 26.0 per cent to $47.8 million, compared to $64.6 million in the same period last year. The GAAP operating margin fell by 3.2 percentage points, decreasing to 6.5 per cent from 9.7 per cent in the prior-year quarter. On an adjusted basis, earnings from operations for the second quarter fell by 41.6 per cent to $37.9 million, down from $65 million last year. The adjusted operating margin decreased by 4.6 percentage points, dropping to 5.2 per cent from 9.8 per cent in the same quarter last year.

“All our segments, except for Asia, delivered top-line growth. Our bottom-line results reflect our decision to significantly increase our marketing investments compared to last year’s spend to support the international expansion of our brands, including our core Guess brand as well as the new additions to our portfolio—Guess Jeans and Rag & Bone,” said Carlos Alberini, chief executive officer.

Fibre2Fashion News Desk (DP)