American fashion brand Guess reports $633.4 mn in revenue for Q3 FY23

American fashion brand Guess reports 3.4 mn in revenue for Q3 FY23
Total revenue of American fashion brand and retailer Guess for the third quarter (Q3) of fiscal 2023 (FY23) reached $633 million, compared to $643.1 million in the corresponding period of the previous fiscal. Despite the decline in the third quarter’s revenue, the company expects fiscal 2023 revenue growth of about 2 per cent in US dollars.

For the third quarter of fiscal 2023, the company recorded GAAP net earnings of $21.8 million, a 26.9 per cent decrease from $29.9 million for the same prior-year quarter. GAAP diluted net earnings per share (EPS) decreased 24.4 per cent to $0.34 for the third quarter of fiscal 2023, compared to $0.45 for the same prior-year quarter.

Total revenue of American fashion brand and retailer Guess for the third quarter (Q3) of fiscal 2023 (FY23) reached $633 million, compared to $643.1 million in the corresponding period of the previous fiscal. Despite the decline in the third quarter’s revenue, the company expects fiscal 2023 revenue growth of about 2 per cent in US dollars.

For Q3 FY23, Guess’ adjusted net earnings were $24.7 million, a 40.4 per cent decrease from $41.6 million for the same prior-year quarter. Adjusted diluted EPS decreased 29.0 per cent to $0.44, compared to $0.62 for the same prior-year quarter, the company said in a press release.

Guess’ GAAP earnings from operations for the third quarter of fiscal 2023 decreased 17 per cent to $54.8 million, from $65.7 million in the same prior-year quarter. GAAP operating margin in Q3 FY23 decreased 1.6 per cent to 8.6 per cent, from 10.2 per cent for the same prior-year quarter, driven primarily by the unfavourable impact of currency, higher costs, and markdowns, partially offset by leveraging of expenses. The negative impact of currency on operating margin for the quarter was approximately 190 basis points.

In Q3 FY23, from a regional perspective, Guess Americas retail revenues decreased 2 per cent in US dollars and 1 per cent in constant currency. Retail comp sales, including e-commerce, decreased 1 per cent in US dollars and remained relatively flat in constant currency. Americas wholesale revenues decreased 10 per cent in US dollars and 9 per cent in constant currency.

Guess Europe revenues in Q3 FY23 decreased 2 per cent in US dollars and increased 17 per cent in constant currency. Retail comp sales, including e-commerce, decreased 8 per cent in US dollars and increased 9 per cent in constant currency.

Asia revenues in Q3 FY23 increased 10 per cent in US dollars and 28 per cent in constant currency. Retail comp sales, including e-commerce, decreased 2 per cent in US dollars and increased 13 per cent in constant currency.

For the nine months ended October 29, 2022, Guess recorded GAAP net earnings of $53.8 million, a 47.8 per cent decrease from $102.9 million for the same prior-year period. GAAP diluted EPS decreased 48.4 per cent to $0.80 for the nine months ended October 29, 2022, compared to $1.55 during the same prior-year period.

For the nine months ended October 29, 2022, Guess recorded adjusted net earnings of $62.9 million, a 47.4 per cent decrease from $119.5 million for the same prior-year period. Adjusted diluted EPS decreased 40.8 per cent to $1.06, compared to $1.79 for the corresponding period of the previous fiscal.

The company’s total net revenue for the nine months ended October 29, 2022, increased 4 per cent to $1.87 billion, from $1.79 billion in the same prior-year period. In constant currency, net revenue increased by 14 per cent.

Guess’ GAAP earnings from operations for the nine months ended October 29, 2022, decreased 19 per cent to $144.6 million, from $179.6 million in the corresponding period of the previous fiscal. GAAP operating margin in the first three quarters of FY22 decreased 2.3 per cent to 7.7 per cent, from 10.0 per cent in the same prior-year period.

For the nine months ended October 29, 2022, Guess’ adjusted earnings from operations decreased 16 per cent to $155.4 million, from $184.9 million in the same prior-year period. Adjusted operating margin decreased 2.0 per cent to 8.3 per cent, from 10.3 per cent for the corresponding period of the previous fiscal.

For the fourth quarter of fiscal 2023, Guess expects revenues to be down around 3.5 per cent in US dollars (up 3.5 per cent in constant currency) versus the fourth quarter of fiscal 2022.

Fibre2Fashion News Desk (DP)