Revenues for US brand Guess grew by 4% in Q1FY25

The company reported GAAP net income of $13 million, a significant improvement from a net loss of $11.8 million in the same quarter last year. GAAP diluted net earnings per share (EPS) was $0.23 compared to GAAP diluted net loss per share of $0.22 for the same period last year.

Guess reported a 4% increase in revenue in the first quarter of FY25 to $591.9 million. GAAP net income was $13 million, an improvement from a loss of $11.8 million last year. Adjusted net loss was $13.8 million. Revenues in Europe increased by 1 percent, retail revenues in the Americas were flat and revenues in Asia increased by 3 percent. The company’s licensing revenue increased by 21 percent.

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

In terms of regional performance, revenues in Europe increased 1 percent in US dollars and 7 percent in constant currency, with comparable retail sales (including e-commerce) increasing 4 percent in US dollars and 9 percent in constant currency. Retail revenues in the Americas were flat in both US dollars and constant currency, while comparable retail sales (including e-commerce) declined 7 percent in US dollars and 8 percent in constant currency. The inclusion of e-commerce sales positively impacted the comparable percentage of retail sales by 1 percent in U.S. dollars and 2 percent in constant currency.

Americas wholesale revenues saw significant growth of 21 percent in U.S. dollars and 18 percent in constant currency. In Asia, revenues increased 3 percent in U.S. dollars and 7 percent in constant currencies, although comparable retail sales (including e-commerce) declined 9 percent in U.S. dollars and 5 percent in constant currencies. The inclusion of e-commerce sales positively impacted the comparable percentage of retail sales by 1 percent in U.S. dollars and 2 percent in constant currency. Licensing revenues increased 21 percent in both U.S. dollars and constant currency.

Guess reported a GAAP operating loss of $19.9 million for the first quarter of fiscal 2025 compared to a GAAP loss of $0.9 million in the same quarter last year. GAAP operating margin for the first quarter fell to negative 3.4%, compared to negative 0.2% during the same period last year. Adjusted operating loss was $7.7 million compared to adjusted operating profits of $1.9 million in the same quarter last year. Adjusted operating margin fell to minus 1.3 percent, down from 0.3 percent in the prior-year quarter.

“We are very pleased with our first quarter results, which exceeded our expectations in terms of revenue and earnings per share. “I believe our strong results this quarter once again underscore the strength of our differentiated business model and the strength of our brand and our global distribution,” he said. Carlos Alberini, CEO.

Fiber2Fashion Information Desk (DP)