2023-05-24 16:42:06 ET
Guess? ( NYSE: GES ) reported revenue drops across its Americas retail (-14% Y/Y), Americas wholesale (-25%) and Licensing (-10%) segments in Q1 , while the Asia (+26%) and Europe (+2%) segments showed positive growth. Total revenue was down 4% to $569.8M, but came in ahead of the consensus mark of $555M.
Adjusted operating margin decreased to 0.3% from 7.0% a year ago, driven primarily by higher costs, lower government subsidies compared to the same prior-year quarter, higher markdowns and the unfavorable impact of currency, partially offset by higher initial markups.
CEO update: "Our international businesses were particularly strong during the quarter. This performance, coupled with strong cost controls and solid product margin performance, helped to more than offset softness in our Americas Retail business as a result of slower customer traffic into our stores... We have a strong capital structure and remain committed to rewarding our shareholders with solid returns."
Guess ( GES ) reported an inventory position of $528.9M at the end of the quarter vs. $510.9M at the end of Q1 and $483.9M a year ago.
Looking ahead, Guess? ( GES ) guided for FY24 revenue growth of +2% to +4%, which is a range ahead of the consensus expectation. EPS of $2.60 to $2.90 is anticipated vs. $2.66 consensus.
Shares of GES jumped 4.77% in postmarket trading to $18.15 vs. the 52-week trading range of $14.27 to $24.15..
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Guess? rallies after Europe and Asia results impress