US' Guess hits revenue of $738.5 mn in Q3 FY25, marking 13% YoY growth

The company’s adjusted net earnings in Q3 were $17.7 million, a 35 per cent decrease from $27.0 million for the same quarter last fiscal. Adjusted diluted earnings per share (EPS) decreased 31 per cent to $0.34, compared to $0.49 a fiscal prior, Guess said in a press release.

The company recorded a generally accepted accounting principles (GAAP) net loss of $23.4 million, compared to GAAP net earnings of $55.7 million for the same quarter last fiscal. GAAP earnings from operations for Q3 FY25 decreased 22.8 per cent to $42.3 million, from $54.8 million in the same prior-fiscal year quarter.

GAAP operating margin in Q3 FY25 decreased 2.7 per cent to 5.7 per cent, from 8.4 per cent for the same quarter last fiscal, driven primarily by higher expenses and the unfavourable impact of channel mix. The negative impact of currency on operating margin for the quarter was approximately 20 basis points (bps).

The adjusted earnings from operations decreased 26.1 per cent to $42.8 million, from $57.9 million in the same quarter of the prior fiscal. Adjusted operating margin decreased 3.1 per cent to 5.8 per cent, from 8.9 per cent YoY, driven primarily by higher expenses and the unfavourable impact of channel mix. Other expense, net for the third quarter of FY25 was $45.8 million compared to $11.0 million last fiscal.

Region-wise, Europe revenues increased 7 per cent in US dollars and 6 per cent in constant currency. Retail comparable sales (including e-commerce) increased 8 per cent in US dollars and 7 per cent in constant currency.

Americas retail revenues increased 12 per cent in US dollars and 14 per cent in constant currency. Retail comparable sales (including e-commerce) decreased 14 per cent in US dollars and 12 per cent in constant currency. Americas wholesale revenues increased 79 per cent in US dollars and 83 per cent in constant currency.

The revenue in Asia increased 2 per cent in both US dollars and constant currency. Retail comparable sales (including e-commerce) decreased 17 per cent in US dollars and 16 per cent in constant currency. “The inclusion of our e-commerce sales had a minimal impact on the retail comparable sales percentage in both US dollars and constant currency,” said the release.

Nine month (9M) financials

The company recorded a GAAP net loss of $21.0 million, compared to GAAP net earnings of $82.9 million for the 9M period of last fiscal. The company recorded adjusted net earnings of $26.8 million, a decrease of 58 per cent YoY. The adjusted diluted EPS decreased 57 per cent to $0.49.

The total net revenue for 9M increased 9 per cent to $2.06 billion, from $1.89 billion in the last fiscal. In constant currency, net revenue increased by 11 per cent YoY.

By region, Europe revenues increased 4 per cent in US dollars and 7 per cent in constant currency. Retail comparable sales (including e-commerce) increased 4 per cent in US dollars and 6 per cent in constant currency.

Americas retail revenues increased 7 per cent in US dollars and 8 per cent in constant currency. Retail comparable sales (including e-commerce) decreased 11 per cent in US dollars and 10 per cent in constant currency. Americas wholesale revenues increased 63 per cent in US dollars and 64 per cent in constant currency.

Asia’s revenue decreased 1 per cent in US dollars and increased 2 per cent in constant currency, and retail comparable sales (including e-commerce) decreased 13 per cent in US dollars and 11 per cent in constant currency.

GAAP earnings from operations for the 9M period decreased 40.8 per cent to $70.2 million from $118.5 million in the same period last fiscal. GAAP operating margin in the 9M decreased 2.9 per cent to 3.4 per cent, from 6.3 per cent in the last fiscal year.

The adjusted earnings from operations decreased 41.5 per cent to $73.0 million, from $124.8 million in the same period, last fiscal. Adjusted operating margin decreased 3.1 per cent to 3.5 per cent, from 6.6 per cent in the last fiscal year.

Outlook

Guess, for the fourth quarter (Q4) of fiscal year 2025 (FY25), expects net revenue to increase between 2.2 per cent and 5.4 per cent in US dollars. The company forecasts a GAAP operating margin between 12.2 per cent and 13.0 per cent, with the same range expected for the adjusted operating margin. GAAP diluted EPS is projected to fall between $1.10 and $1.22, while adjusted diluted EPS is anticipated to range between $1.37 and $1.52.

For the full fiscal year 2025, the company expects consolidated net revenue to increase by 7.1 per cent to 8.1 per cent. The forecast GAAP operating margin is between 6.1 per cent and 6.4 per cent, while the adjusted operating margin is expected to be slightly higher, ranging from 6.2 per cent to 6.5 per cent. The company estimates GAAP diluted EPS to be between $0.70 and $0.82. The adjusted diluted EPS for the fiscal year is projected to range from $1.85 to $2.00.

Fibre2Fashion News Desk (SG)