Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 04, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-11893 GUESS?, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or o ...

Financial Data and Key Metrics Changes - For Q1 2025, total company revenues grew by 4% to $592 million, with a 7% increase in constant currency [12][26] - Adjusted operating loss was reported at $8 million, with an adjusted loss per diluted share of $0.27, compared to a loss of $0.70 per share in the previous year [14][45] - Total company gross margin reached 41.9%, up 120 basis points from the previous year, driven by higher revenues and improved initial markups [29][45] Business Line Data and Key Metrics Changes - The Americas Retail segment saw revenues increase by approximately 0.5% to $144 million, with comp sales declining by 12% in constant currency [15][57] - The Europe segment reported a 1% revenue increase to $284 million, with double-digit comp growth in retail [31][56] - The Americas Wholesale business grew by 21% to $62 million, primarily due to rag & bone shipments [32][44] Market Data and Key Metrics Changes - In Asia, revenues increased by 3% to $73 million, with retail comps declining by 5% in constant currency [44] - The Licensing segment performed well, with a 21% revenue increase to $29 million, benefiting from the amortization of the handbag license renewal [32][58] Company Strategy and Development Direction - The company aims to leverage its platform to support multiple brands, including the recent acquisition of rag & bone, which is expected to enhance growth opportunities [16][39] - The strategic focus includes expanding product categories and international presence, particularly in Europe and emerging markets [17][39] - The company is also refining its pricing structure and reducing SKU counts to improve operational efficiency [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth opportunities despite challenges in the retail environment, particularly in the Americas [15][49] - The company expects revenue growth to exceed $3 billion for the first time this year, with adjusted earnings per share projected to be nearly $3 [21][62] - Management acknowledged external factors such as inflation and cautious consumer spending affecting the retail business [49][62] Other Important Information - The company completed its first-ever acquisition of rag & bone, which is expected to contribute significantly to revenue growth [30][39] - A special dividend of $2.25 per share was issued to shareholders, reflecting the company's strong capital structure [48] Q&A Session Summary Question: Revenue guidance for the year and FX impact - Management acknowledged a slight adjustment in revenue guidance due to currency headwinds and performance in the Americas retail business [70][88] Question: Operating margin expansion opportunities - Management highlighted potential for operating margin expansion in the fourth quarter due to improved full-price selling and timing of wholesale shipments [73][75] Question: Expansion of rag & bone internationally - Management discussed plans for expanding rag & bone's retail presence in Europe and the potential for additional product categories [94][96] Question: Multi-branded platform strategy - Management confirmed the strategy to leverage the platform for multiple brands, focusing on growing rag & bone and the newly launched Guess Jeans brand [99][107]

Guess (GES) came out with a quarterly loss of $0.27 per share versus the Zacks Consensus Estimate of a loss of $0.39. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 30.77%. A quarter ago, it was expected that this clothing company would post earnings of $1.55 per share when it actually produced earnings of $2.01, delivering a surprise of 29.68%. Over the last four quarters, the company has surp ...

Financial Performance - Revenues for the first quarter of fiscal 2025 increased to $592 million, up 4% in U.S. dollars and 7% in constant currency[2] - GAAP net earnings were $13.0 million, compared to a GAAP net loss of $11.8 million in the same prior-year quarter, with GAAP diluted EPS of $0.23[7] - Adjusted net loss for the first quarter was $13.8 million, with adjusted diluted net loss per share of $0.27, compared to $3.5 million and $0.07 in the same prior-year quarter[8] - For the three months ended May 4, 2024, net revenue was $591,943,000, an increase from $569,798,000 for the same period in 2023, representing a growth of 3.9%[37] - Total net revenue for the three months ended May 4, 2024, was $591,943,000, representing a 4% increase from $569,798,000 in the same period last year[42] - Reported GAAP net earnings attributable to Guess?, Inc. were $13,022,000, a significant improvement from a loss of $11,805,000 in the previous year[40] - Adjusted net loss attributable to Guess?, Inc. was $13,810,000 compared to a loss of $3,487,000 in the prior year[40] - Total loss from operations increased to $19,888,000 from $922,000, marking a 2,057% change[42] - Free cash flow for the three months ended May 4, 2024, was $(45,554,000), compared to $(31,495,000) in the same period last year[50] Revenue Segments - Americas wholesale revenues increased by 21% in U.S. dollars and 18% in constant currency, while Americas retail revenues remained flat[10] - Licensing revenues increased by 21% in both U.S. dollars and constant currency[10] - Americas Wholesale segment revenue increased by 21% to $62,128,000 from $51,393,000 year-over-year[42] Future Outlook - The company expects revenue growth between 10.7% and 12.7% for the full fiscal year 2025, with GAAP EPS projected between $2.59 and $2.89[3] - The company's outlook for Q2 and full fiscal year 2025 assumes foreign currency exchange rates remain stable at recent levels[56] - Full fiscal 2025 outlook excludes various costs including professional service fees, transaction costs from the rag & bone acquisition, and asset impairment charges[56] - The company plans to discuss its future outlook and strategies in a conference call scheduled for May 30, 2024[28] Acquisitions and Integrations - The acquisition of rag & bone was completed on April 2, 2024, integrating the brand into the company's existing segments[6] - The company acquired all operating assets and a 50% interest in the intellectual property assets of rag & bone on April 2, 2024, expanding its market presence in the U.S. and U.K.[29] - The company plans to launch Guess Jeans and work with the rag & bone team to expand globally[4] Shareholder Actions - The board approved a quarterly cash dividend of $0.30 per share, payable on June 28, 2024[22] - A new $200 million share repurchase program was authorized, with $10.3 million spent on repurchasing shares in the first quarter[23] Operational Metrics - As of May 4, 2024, the company operated 1,048 retail stores directly and had 533 additional stores operated by partners and distributors globally[29] - The company operated a total of 1,581 stores as of May 4, 2024, a slight decrease from 1,588 stores as of April 29, 2023[52] Tax and Expenses - The effective income tax rate for the quarter was (42.0%), compared to 17.4% in the same quarter of the previous year[37] - The adjusted effective income tax rate was 12.3%, up from 0.4% in the previous year[40] - Adjusted selling, general and administrative expenses were $255,785,000, which is 43.2% of net revenue, compared to 40.4% in the previous year[37] Financial Adjustments - The company recorded asset impairment charges primarily related to underperforming retail locations and expected store closures[56] - The income tax effect of various adjustments is based on the company's assessment of deductibility using the statutory income tax rate[56] - The company is unable to predict future amounts related to certain adjustments due to their inconsistent nature and elements beyond its control[56] - Adjustments for the fiscal year include loss on extinguishment of debt from exchanged 2024 Notes and changes in fair value of equity-linked derivatives associated with the 2028 Notes[56] - The adjusted results exclude the impact of certain professional service fees, transaction costs, and asset impairment charges, among others[56] Cash and Assets - Cash and cash equivalents decreased to $241,654,000 from $298,642,000 compared to the previous year[46] - Total assets increased to $2,748,641,000 from $2,440,722,000 year-over-year[46]

Guess? Inc. (GES) is likely to register top-line growth when it reports first-quarter fiscal 2025 earnings on May 30. The Zacks Consensus Estimate for revenues is pegged at $577 million, implying growth of 1.3% from the prior-year quarter's reported figure. The consensus estimate has widened from a loss of 35 cents per share to a loss of 39 cents in the past 30 days. The suggested figure is wider than a reported loss of 7 cents per share in the year-ago quarter. Unlocking Value From a valuation perspective, ...

Short-squeeze stocks have seen an explosion in interest after the recent Roaring Kitty saga that sent many meme stocks soaring to dizzying heights. Now, before we dive in, I would like to mention that meme stocks are something that are generally best avoided, like the plague. Yes, certain meme stocks did surge, but the chance of actually timing any sort of investment correctly is slim to none. Not only that, but most of the mania is short-lived. Thus, you would have to sell at the precise right time to make ...

Persistent inflationary pressures and disruptions in the supply chain are persistent challenges for many players within the Zacks Textile - Apparel industry. Additionally, heightened SG&A expenses are impacting profitability across the sector.Despite these challenges, Lululemon Athletica Inc. (LULU) , Ralph Lauren Corporation (RL) , PVH Corp. (PVH) and Guess?, Inc. (GES) are strategically positioned for growth due to their efforts to enhance physical and digital operations coupled with strong brand developm ...

A month has gone by since the last earnings report for Guess (GES) . Shares have lost about 18.4% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Guess due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Guess? Q4 Earnings & Revenues Top Estimates, Grow Y/YGuess? re ...

Guess? Inc. (GES) is committed to pursuing its six key strategies to achieve growth. The contemporary apparel and accessories company is reaping benefits from the ongoing momentum and impressive customer response to its brand. That being said, Guess? Is not immune to the rising cost environment.Let’s discuss this in detail.What’s Working in Guess?’s FavorGuess? is benefiting from robust brand momentum globally and strong customer response to its collections across various product categories. Management is o ...

The latest trading session saw Guess (GES) ending at $28.09, denoting a -1.78% adjustment from its last day's close. This change lagged the S&P 500's 0.74% gain on the day. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq gained 1.68%.The the stock of clothing company has risen by 11.5% in the past month, leading the Consumer Discretionary sector's loss of 2.3% and the S&P 500's gain of 0.8%.The investment community will be paying close attention to the earnings performance of Guess in its up ...