Guess?, Inc. Reports Third Quarter Fiscal 2025 Financial Results
Guess?, Inc. (NYSE: GES) announced its financial results for the third quarter of fiscal year 2025, ending on November 2, 2024.
Financial Overview:
Below is a comparison of key earnings metrics:
| Metric | Q3 FY2025 ($M) | Q3 FY2024 ($M) | YoY Change (%) | Wall Street Consensus |
|---|---|---|---|---|
| Revenue | 739 | 651.2 | 13 | 747.44 |
| GAAP EPS | (0.47) | 0.82 | - | 0.37 |
| Adjusted EPS | 0.34 | 0.49 | -31 | 0.37 |
Despite a 13% increase in quarterly revenues, the company fell short of revenue consensus estimates of $747.44 million. The adjusted EPS was also below the market expectation.
Segment Revenue Performance:
| Segment | Revenue Growth (in USD) (%) | Constant Currency Growth (%) |
|---|---|---|
| Europe | 7 | 6 |
| Americas Retail | 12 | 14 |
| Americas Wholesale | 79 | 83 |
| Asia | 2 | 2 |
| Licensing | 0 | 0 |
In the third quarter, the Americas Wholesale segment showed significant growth of 79% year-over-year, while Licensing remained flat.
Key Developments and Highlights:
- Successfully integrated newly acquired brand rag & bone into existing segments.
- Challenges continued in North America and Asia due to slow customer traffic.
- Managed to achieve an operating margin of 5.7%.
Comments from Company Officers:
Carlos Alberini, CEO, highlighted the substantial 13% sales growth driven by the acquisition of rag & bone and modest growth of core Guess businesses. He remarked on the strong performance in Europe and the challenges faced in North America and Asia due to decreased customer traffic.
Paul Marciano, Chief Creative Officer, emphasized investments in new product introductions and marketing. He announced heightened focus on their rag & bone and Guess Jeans brands to boost customer engagement and brand recognition.
Dividends and Share Repurchase Program:
The Board declared a quarterly cash dividend of $0.30 per share, scheduled for payment on December 27, 2024. Additionally, Guess continues its $200 million share repurchase program, with $139.8 million remaining for future buybacks.
Forward Guidance:
The company adjusted its fiscal year 2025 outlook, forecasting total revenues slightly below $3 billion. The revised expectations also include GAAP EPS between $0.70 and $0.82 and adjusted EPS from $1.85 to $2.00.
Stock Performance:
Following the earnings release, Guess?, Inc.'s stock decreased by approximately 3.66%.
Overall, while Guess reported notable revenue growth and continued brand expansion, it faces ongoing pressures from market challenges and consumer traffic issues in key regions. The company remains focused on steering its future vision to create long-term shareholder value.
For more in-depth analysis and insights, stay tuned with our platform to stay ahead of the market.
