I guess revenue goes up but profit goes down

I guess revenue goes up but profit goes down

I guess revenue goes up but profit goes down

For the second quarter, Guess?, Inc. reported that total net sales increased 2% to $642.7 million, while in constant currency, net sales increased 12 %.

Total net sales for the six months ended July 30, 2022 increased 8% to $1.24 billion and in constant currency, net sales increased 16% over the same period last year.

Commenting on the business update, Carlos Alberini, the company’s Chief Executive Officer, said, “We are pleased with our second quarter results which exceeded our expectations for revenue and operating profit in a fast-paced sales environment. difficult detail. For the second half of the year, we have adjusted our outlook to reflect our current trends and the impact of existing macro headwinds, including currency.

Highlights of Second Quarter Results at Guess

For the second quarter of fiscal 2023, the company reported GAAP net income of $24 million, down 60.8% from the same quarter a year earlier. Diluted net earnings per share (EPS) under GAAP fell 61.5% to 35 cents.

The company’s adjusted net income was $22.9 million, down 64.3% from the same quarter a year earlier. Adjusted diluted EPS fell 59.4% to 39 cents.

For the second quarter, Americas retail revenue decreased 2% in US dollars and constant currency. Retail sales, including e-commerce, were down 6% in US dollars and 5% in constant currency.

Americas wholesale revenue increased 1% in US dollars and 2% in constant currency.

Revenue in Europe increased 4% in US dollars and 21% in constant currency, while retail sales, including e-commerce, decreased 4% in US dollars and increased 10% in constant currency .

Revenue in Asia increased 3% in US dollars and 15% in constant currency and retail sales, including e-commerce, decreased 2% in US dollar and increased 10% in constant currency.

The company’s licensing revenue increased 13% in US dollars and constant currencies.

Guess first half earnings drop 56.3%

For the six months ended July 30, 2022, the company reported GAAP net income of $31.9 million, down 56.3% from the same period a year earlier. GAAP diluted EPS decreased 58.2% to 46 cents.

The company’s adjusted net income of $38.1 million was down 51.1%, while adjusted diluted EPS was down 47% to 62 cents from the same period a year earlier.

Retail revenues in the Americas increased 2% in US dollars and retail and constant currency sales, including e-commerce, decreased 2% in US dollars and constant currencies.

Americas wholesale revenue increased 24% in US dollars and 25% in constant currency.

Revenues in Europe increased 9% in US dollars and 23% in constant currencies and retail sales, including e-commerce, decreased 5% in US dollars and increased 8% in constant currencies.

Asia revenue increased 2% in US dollars and 11% in constant currency, while retail sales, including e-commerce, fell 6% in US dollars and increased 2% in constant currency.

The company’s licensing revenue increased 18% in US dollars and constant currencies.

Guess adjusts the outlook

For the third quarter of fiscal 2023, Guess expects revenue to be down about 4.5% in U.S. dollars and up 4.5% in constant currency from the third quarter of fiscal 2023. fiscal year 2022.

For full fiscal year 2023, the company expects revenue to grow approximately 1.5% in US dollars and 9.5% in constant currency from fiscal year 2022.

The Company’s Board of Directors has approved a quarterly cash dividend of 0.225 cents per share payable September 23, 2022 to shareholders of record at the close of business September 7, 2022.

Leave a Reply

Your email address will not be published.