Core Viewpoint - The law firm Wohl & Fruchter LLP is investigating the fairness of the proposed sale of Guess?, Inc. to Authentic Brands Group for $16.75 per share, which is significantly lower than its 52-week high of $21.81, indicating a potentially opportunistic acquisition [1][4]. Group 1: Sale Details - Guess? has agreed to be sold for $16.75 per share in cash to Authentic Brands Group [4]. - The sale price is notably below Guess?'s 52-week high of $21.81 per share, raising concerns about the fairness of the transaction [1][4]. Group 2: Shareholder Concerns - Certain existing shareholders, including co-founders and the CEO, will roll over their shares into equity interests in the post-close entity, a benefit not extended to public stockholders [2][5]. - The sale was approved by a Special Committee of the Board, which may have conflicts of interest affecting its members [3][6]. Group 3: Investigation Focus - The investigation by Wohl & Fruchter LLP aims to determine if the Special Committee acted in the best interests of Guess? shareholders, including the independence of its members and the fairness of the sale price [7].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

格隆汇8月20日丨知名服装品牌Guess(GES.US)盘前涨超25%。消息面上，Guess同意以每股16.75美元现 金收购价完成私有化。 | | D Guen SH @E EK JK JIC 4K 4X JIC 4K 4X 10X 10 5G 109 1559 109 1559 3001 4500 1000 1700 172 120 172 120 12:10K = | | | BA- @ D- 10 & 2 VS FIB CL | | --- | --- | --- | --- | --- | | | のの中ののののののといいということできるのの | | | | | | 立地出版 287,39万 白川日报 47,29万 三番市(216.790 最佳信 13,640 | | | @ @ C - MSMM | | 16.740 | | | | 25.09% | | 11.645 | | | | 14,75% | | 16.500 | | | | 219J% | | 16418 | | | | 210079. | | 14.344 | | | | 22,22% | | 14.7761 | | | | 我指出 ...

Core Viewpoint - Kaskela Law LLC is investigating the fairness of the proposed buyout of Guess? Inc. at a price of $13.00 per share, which may undervalue the company's shares significantly [1][3]. Group 1: Buyout Proposal Details - On March 17, 2025, Guess? announced a buyout proposal from WHP Global for unaffiliated shareholders at $13.00 per share [2]. - The proposed buyout price is significantly lower than Guess?'s 52-week high of over $33.00 per share [3]. - The buyout price is also below analyst price targets for Guess? shares, which exceed $18.00 per share [3]. Group 2: Investigation Purpose - The investigation aims to determine if the proposed buyout price is fair and represents adequate monetary consideration for Guess? shares [3]. - Shareholders are encouraged to contact Kaskela Law LLC for more information regarding their legal rights and options [4].

Core Viewpoint - Kaskela Law LLC has initiated an investigation into the fairness of the proposed buyout of Guess? Inc. to assess whether the buyout price adequately reflects the value of the company's shares [1][3]. Buyout Proposal - On March 17, 2025, Guess? announced a buyout proposal from WHP Global, offering $13.00 per share to unaffiliated shareholders [2]. - The proposed buyout price of $13.00 is significantly lower than Guess?'s 52-week high of over $33.00 per share [3]. - The buyout offer is also below analyst price targets for Guess? shares, which exceed $18.00 per share [3]. Investigation Purpose - The investigation aims to determine if the proposed buyout price is fair and provides sufficient monetary consideration for Guess? shareholders [3].

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 03, 2025 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) (Address of principal executive offices and zip co ...

Core Insights - Guess?, Inc. (GES) reported a year-over-year increase in top-line revenue for the first quarter of fiscal 2026, driven by the acquisition of rag & bone, although the bottom line showed a decline compared to the previous year [1][10] Quarterly Performance: Key Metrics & Insights - Adjusted loss per share was $0.44, better than the Zacks Consensus Estimate of a loss of $0.70, but worse than the adjusted loss of $0.27 in the same quarter last year [2][10] - Net revenues reached $647.8 million, a 9% increase year-over-year, surpassing the consensus estimate of $631 million; on a constant-currency basis, revenues rose 12% [2] - Gross margin decreased to 39.9% from 41.9% in the prior-year quarter, while adjusted SG&A expenses rose to 44% from 43.2% [3] Segmental Performance - Americas Retail segment revenues increased by 9% in U.S. dollars and 12% at constant currency, but retail comparable sales declined by 11% in U.S. dollars and 9% at constant currency [5] - Americas Wholesale revenues surged by 63% on a reported basis and 70% at constant currency, although the operating margin fell to 19.9%, down 2.8% year-over-year [6] - Europe segment revenues grew by 8% on a reported basis and 9% at constant currency, with retail comparable sales decreasing by 4% [7] - Asia revenues dropped by 20% on a reported basis and 16% at constant currency, with retail comparable sales down 24% [8] Financial Health Snapshot - The company ended the quarter with cash and cash equivalents of $151.2 million and long-term debt of approximately $241.7 million; stockholders' equity was around $483.6 million [11] - Net cash used in operating activities for the quarter was negative $73.4 million, with free cash flow also negative at $96.4 million [11] Future Expectations - For fiscal 2026, GES expects revenue growth between 5.5% and 7.4%, an increase from the previous outlook of 3.9% to 6.2% [13] - Adjusted EPS is projected to be between $1.32 and $1.64, down from the prior estimate of $1.32 to $1.76 [14] - For the second quarter of fiscal 2026, revenue growth is expected to be between 2.9% and 4.7%, with adjusted EPS ranging from 11 to 21 cents [15]

Financial Data and Key Metrics Changes - Total company revenues increased by 9% in U.S. dollars to $648 million, with a 12% increase in constant currency, primarily driven by the acquisition of Rag and Bone, which contributed nine points to constant currency growth [43][44] - Adjusted operating loss totaled $26 million, with an adjusted operating margin of -4%, reflecting a decline of 270 basis points compared to the previous year [51] - Adjusted diluted loss per share was $0.44, an increase from an adjusted loss per share of $0.27 in the prior year [51] Business Line Data and Key Metrics Changes - The core Guess business grew by 3% in constant currency, with wholesale businesses in Europe and The Americas offsetting negative comps from direct businesses [43][44] - In the Americas retail segment, revenues grew by 9% in U.S. dollars, reaching $157 million, driven primarily by the acquisition of Rag and Bone [46] - The European wholesale business posted mid-teen growth rates, while retail comps in Europe declined by 4% in U.S. dollars [9][44] Market Data and Key Metrics Changes - The Americas wholesale business saw a 63% increase in revenues in U.S. dollars, driven by Rag and Bone and higher shipments [48] - Revenues in Asia decreased by 20% in U.S. dollars, with significant declines in South Korea and China, where the company is constraining operations [49] - Licensing segment revenues declined by 14% to $25 million, with royalties from fragrances and footwear decreasing [50] Company Strategy and Development Direction - The company is focusing on improving retail productivity and brand awareness through increased marketing investments and a new customer loyalty program launched in Europe [19][20] - Strategic initiatives include enhancing supply chain capabilities, optimizing product assortments, and addressing pricing strategies to attract a broader customer base [21][22][23] - The company is examining its store portfolio to ensure each location serves a strategic purpose, with plans to close non-strategic stores in North America [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of Rag and Bone and its contribution to growth, with expectations for the brand to exceed $320 million in revenue this year [65] - The company anticipates revenue growth for the full year in the range of 5.5% to 7.4%, driven by solid growth from European wholesale and the full-year impact of Rag and Bone [37][38] - Management acknowledged challenges in traffic and sales in Asia but remains committed to finding a partner to manage operations in that market [10][29] Other Important Information - The company ended the quarter with $638 million in inventory, a 15% increase in U.S. dollars, primarily to mitigate supply chain disruptions [52] - Capital expenditures for the quarter were $22 million, mainly for store remodels and technology investments [54] - The Board approved a regular quarterly cash dividend of $0.30 per share [55] Q&A Session Summary Question: Can you discuss the organic growth expectations for Rag and Bone? - Management expressed satisfaction with Rag and Bone's performance, expecting it to exceed $320 million in revenue this year, driven by strong wholesale and direct-to-consumer sales [63][65] Question: What is the outlook for the Americas retail business? - Management noted improvements in conversion rates and positive comps in women's apparel, despite ongoing traffic challenges [72][75] Question: How should investors think about inventory levels moving forward? - Management indicated that the current inventory increase is intentional to support business needs, with plans to streamline inventory levels once supply chain issues normalize [92][95]

Financial Data and Key Metrics Changes - Total company revenues increased by 9% in U.S. dollars to $648 million, with a 12% increase in constant currency, primarily driven by the acquisition of Rag and Bone, which contributed nine points to constant currency growth [42][43] - Adjusted operating loss totaled $26 million, with an adjusted operating margin of negative 4%, reflecting a decline of 270 basis points compared to the previous year [50] - Adjusted loss per share was $0.44, an improvement from an adjusted loss per share of $0.27 in the prior year [50] Business Line Data and Key Metrics Changes - The core Guess business grew by 3% in constant currency, with wholesale businesses in Europe and The Americas offsetting negative comps from direct businesses [42][43] - In the Americas wholesale segment, revenues increased by 63% in U.S. dollars to $101 million, driven by the addition of Rag and Bone and higher shipments [47] - The European retail segment saw a constant currency comp decrease of 4%, while the Americas retail segment experienced a 10% decline in constant currency comps [8][46] Market Data and Key Metrics Changes - The European wholesale business posted mid-teen growth rates, while the Asian market faced significant challenges, with revenues declining over 20% [6][9] - In Asia, revenues decreased by 20% in U.S. dollars to $58 million, with retail comps declining by 20% in constant currency [48] - Licensing segment revenues declined by 14% to $25 million, with royalties from fragrances and footwear decreasing [49] Company Strategy and Development Direction - The company is focusing on improving retail productivity, enhancing brand awareness, and optimizing its business model to improve profitability [15][24] - Strategic initiatives include increasing marketing investments, launching a customer loyalty program, and rebalancing product assortments to address pricing sensitivity [18][22] - The company is also examining its store portfolio and plans to reduce its North America store fleet by approximately 20 stores [27][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for improved retail trends in the second half of the year, driven by marketing and productivity initiatives [36][59] - The company expects full-year revenue growth in the range of 5.5% to 7.4%, with adjusted operating margins between 4.4% and 5.1% [36][57] - Management acknowledged ongoing challenges in traffic and sales, particularly in Asia, but noted improvements in conversion rates and average unit retail [73][78] Other Important Information - The company ended the quarter with $638 million in inventory, a 15% increase compared to the previous year, primarily due to proactive measures to mitigate supply chain disruptions [51][94] - The transition to a new Chief Financial Officer, Alberto Toney, is expected to enhance operational efficiency and long-term value creation [38] Q&A Session Summary Question: Can you discuss Rag and Bone's organic growth expectations and the trajectory of the Americas retail business? - Management expressed satisfaction with Rag and Bone's performance, expecting it to exceed $320 million in revenue this year, driven by new store openings and strong wholesale growth [66][67] - For the Americas retail business, management noted ongoing traffic challenges but highlighted improvements in conversion rates and product assortment strategies [73][74] Question: How should we think about inventories for the rest of the year? - Management indicated that the 15% increase in inventory was intentional to support business needs and mitigate supply chain challenges, with plans to streamline inventory levels over the medium term [93][95] Question: Update on Guess? Jeans? - Management reported positive developments in the Guess? Jeans business, particularly in Europe, with ongoing improvements in product offerings and distribution [99]

[Q1 FY2026 Performance and Outlook](index=1&type=section&id=GUESS%3F%2C%20INC.%20REPORTS%20FISCAL%20YEAR%202026%20FIRST%20QUARTER%20RESULTS) This section covers the company's first-quarter financial results, management's strategic commentary, and details of the recent rag & bone acquisition [First Quarter Fiscal 2026 Highlights](index=1&type=section&id=First%20Quarter%20Fiscal%202026%20Results) Guess?, Inc. reported a 9% revenue increase to $648 million for the first quarter of fiscal 2026, but experienced a GAAP loss per share of $0.65, a significant downturn from the previous year's earnings, with an updated full-year outlook projecting revenue growth between 5.5% and 7.4% and an adjusted EPS of $1.32 to $1.64 Q1 FY2026 Key Metrics | Metric | Value | | :--- | :--- | | Revenues | $648 Million (+9% in USD, +12% in constant currency) | | GAAP Operating Margin | (5.1)% | | Adjusted Operating Margin | (4.0)% | | GAAP Loss per Share | $0.65 | | Adjusted Loss per Share | $0.44 | Updated Full Fiscal Year 2026 Outlook | Metric | Outlook Range | | :--- | :--- | | Revenue Increase (USD) | 5.5% to 7.4% | | GAAP Operating Margin | 3.9% to 4.6% | | Adjusted Operating Margin | 4.4% to 5.1% | | GAAP EPS | $0.87 to $1.11 | | Adjusted EPS | $1.32 to $1.64 | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management expressed encouragement over the first quarter's performance, which surpassed expectations, driven by the successful integration of rag & bone and strong wholesale business in Europe and the Americas, with plans to leverage its diversified business model for future growth and proactive steps taken to mitigate tariff impacts to under $10 million - The better-than-expected performance was attributed to the successful integration of rag & bone and continued momentum in wholesale businesses across Europe and the Americas[4](index=4&type=chunk) - Future growth initiatives include expanding rag & bone into new markets, increasing distribution of the Guess Athleisure line, and launching the Guess Jeans brand to target young consumers[4](index=4&type=chunk) - The company has proactively managed tariff exposure to protect margins, limiting the fiscal year's net impact to less than **$10 million**, which is incorporated into the outlook[4](index=4&type=chunk) [rag & bone Acquisition](index=2&type=section&id=rag%20%26%20bone%20Acquisition) On April 2, 2024, Guess? and WHP Global finalized the acquisition of the fashion brand rag & bone, with Guess? acquiring all operating assets and liabilities, and a 50/50 joint venture acquiring the intellectual property, integrating the business into existing segments from the acquisition date - The company acquired all operating assets and assumed related liabilities of rag & bone[6](index=6&type=chunk) - A **50/50 joint venture** with WHP Global was formed to acquire rag & bone's intellectual property[6](index=6&type=chunk) - As of **April 2, 2024**, rag & bone has been integrated into the company's existing operational segments[6](index=6&type=chunk) [First Quarter Fiscal 2026 Financial Results Analysis](index=2&type=section&id=First%20Quarter%20Fiscal%202026%20Financial%20Results%20Analysis) This section provides a detailed analysis of the company's overall financial performance and segment-specific results for the first quarter of fiscal year 2026 [Overall Financial Performance](index=2&type=section&id=Overall%20Financial%20Performance) In Q1 FY2026, the company shifted to a GAAP net loss of $32.9 million from a $13.0 million net profit in the prior year, largely due to a $4.3 million unrealized loss on derivatives compared to a $38.5 million gain previously, with net revenue increasing by 9% to $647.8 million, but the GAAP operating loss widened by 67.5% to $33.3 million, and the operating margin declined from -3.4% to -5.1% YoY, influenced by unfavorable business mix and higher impairment charges Q1 FY2026 vs. Q1 FY2025 Performance | Metric | Q1 FY2026 | Q1 FY2025 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $647.8M | $591.9M | +9.0% | | GAAP Net Earnings (Loss) | ($32.9M) | $13.0M | -353% | | GAAP Diluted EPS (Loss) | ($0.65) | $0.23 | -383% | | Adjusted Net Loss | ($22.3M) | ($13.8M) | +61% | | Adjusted Diluted EPS (Loss) | ($0.44) | ($0.27) | +63% | | GAAP Loss from Operations | ($33.3M) | ($19.9M) | +67.5% | | GAAP Operating Margin | (5.1)% | (3.4)% | -1.7 p.p. | - The significant swing from net earnings to net loss was primarily driven by a net **$4.3 million unrealized loss on derivatives**, compared to a net **$38.5 million unrealized gain** in the prior-year quarter[7](index=7&type=chunk)[13](index=13&type=chunk) [Segment Performance](index=2&type=section&id=Segment%20Performance) Revenue growth was led by Americas Wholesale (+63%), Americas Retail (+9%), and Europe (+8%), while Asia revenues fell by 20% and Licensing by 14%, with operating margins declining across most segments, Americas Retail dropping to -10.5% and Asia turning to a negative margin of -3.1% from a positive 5.1% last year, and only the Licensing segment seeing a slight margin improvement Segment Revenue Performance (YoY) | Segment | Revenue Change (USD) | Revenue Change (Constant Currency) | | :--- | :--- | :--- | | Americas Wholesale | +63% | +70% | | Americas Retail | +9% | +12% | | Europe | +8% | +9% | | Licensing | -14% | -14% | | Asia | -20% | -16% | Segment Operating Margin Performance | Segment | Q1 FY2026 Operating Margin | Q1 FY2025 Operating Margin | | :--- | :--- | :--- | | Americas Wholesale | 19.9% | 22.7% | | Americas Retail | (10.5)% | (7.2)% | | Europe | (2.9)% | (0.2)% | | Asia | (3.1)% | 5.1% | | Licensing | 92.1% | 92.0% | - Retail comparable sales (including e-commerce) decreased across all regions: Americas Retail (**-11%**), Asia (**-24%**), and Europe (**-4%**) in U.S. dollars[10](index=10&type=chunk) [Fiscal Year 2026 Outlook](index=5&type=section&id=Outlook) This section outlines the company's financial projections for the full fiscal year 2026 and the second quarter, including revenue, operating margin, EPS, and free cash flow forecasts [Company Outlook](index=5&type=section&id=Company%20Outlook) For the full fiscal year 2026, Guess? anticipates a revenue increase between 5.5% and 7.4%, with an adjusted operating margin of 4.4% to 5.1% and adjusted EPS between $1.32 and $1.64, while the outlook for the second quarter projects revenue growth of 2.9% to 4.7% and an adjusted EPS of $0.11 to $0.21 Fiscal 2026 Full Year and Q2 Outlook | Metric | Second Quarter of Fiscal 2026 | Full Fiscal 2026 | | :--- | :--- | :--- | | Net Revenue Increase (USD) | 2.9% to 4.7% | 5.5% to 7.4% | | GAAP Operating Margin | 2.5% to 3.3% | 3.9% to 4.6% | | Adjusted Operating Margin | 2.5% to 3.3% | 4.4% to 5.1% | | GAAP Diluted EPS | $0.11 to $0.18 | $0.87 to $1.11 | | Adjusted Diluted EPS | $0.11 to $0.21 | $1.32 to $1.64 | - The full-year adjusted operating margin outlook of **4.4% to 5.1%** is derived from a GAAP outlook of **3.9% to 4.6%** after accounting for restructuring charges, asset impairments, and other costs[18](index=18&type=chunk) [Free Cash Flow Outlook](index=6&type=section&id=Free%20Cash%20Flow%20Outlook) The company projects a free cash flow of approximately $55 million for the full fiscal year 2026, based on an expected $125 million in net cash from operating activities, offset by $65 million in property and equipment purchases and $5 million in payments for finance leases Fiscal 2026 Free Cash Flow Outlook (in millions) | Item | Amount | | :--- | :--- | | Net cash provided by operating activities | $125 | | Less: Purchases of property and equipment | ($65) | | Less: Payments for property and equipment under finance leases | ($5) | | **Free cash flow** | **$55** | [Shareholder Returns and Other Information](index=7&type=section&id=Shareholder%20Returns%20and%20Other%20Information) This section details the company's dividend policy and provides an overview of its global retail store and concession data [Dividends](index=7&type=section&id=Dividends) The Board of Directors has approved a quarterly cash dividend of $0.30 per share on the company's common stock, payable on July 3, 2025, to shareholders of record as of June 18, 2025 - A quarterly cash dividend of **$0.30 per share** has been approved[22](index=22&type=chunk) - The dividend is payable on **July 3, 2025**, to shareholders of record on **June 18, 2025**[22](index=22&type=chunk) [Store and Concession Data](index=19&type=section&id=Retail%20Store%20Data) As of May 3, 2025, Guess? and its partners operated 1,601 retail stores globally, an increase of 20 stores from the previous year, with the total number of directly operated stores growing to 1,074 from 1,048, while partner-operated stores slightly decreased Global Store Count Comparison | Store Type | As of May 3, 2025 | As of May 4, 2024 | | :--- | :--- | :--- | | Total Stores | 1,601 | 1,581 | | Directly Operated | 1,074 | 1,048 | | Partner Operated | 527 | 533 | [Condensed Consolidated Financial Statements](index=11&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the company's condensed consolidated income statements, balance sheet data, cash flow information, and reconciliation of GAAP to adjusted results [Condensed Consolidated Statements of Income (Loss)](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) For the first quarter of FY2026, the company reported net revenue of $647.8 million, up from $591.9 million in the prior year, but increased cost of product sales and higher SG&A expenses led to a loss from operations of $33.3 million, a significant increase from the $19.9 million loss in the same period last year, resulting in a final net loss attributable to Guess?, Inc. of $32.9 million, a reversal from a $13.0 million net earning in Q1 FY2025 Q1 Income Statement Highlights (in thousands) | Line Item | Three Months Ended May 3, 2025 | Three Months Ended May 4, 2024 | | :--- | :--- | :--- | | Net revenue | $647,801 | $591,943 | | Gross profit | $258,457 | $248,101 | | Loss from operations | $(33,308) | $(19,888) | | Net earnings (loss) attributable to Guess?, Inc. | $(32,928) | $13,022 | [Reconciliation of GAAP Results to Adjusted Results](index=12&type=section&id=Reconciliation%20of%20GAAP%20Results%20to%20Adjusted%20Results) The company's GAAP net loss of $32.9 million was adjusted to a non-GAAP net loss of $22.3 million for the quarter, with key adjustments including adding back $6.1 million in asset impairment charges and a $4.3 million loss from the fair value remeasurement of derivatives, aiming to provide a clearer view of underlying business performance by excluding non-recurring or non-operational items Reconciliation of GAAP to Adjusted Net Loss (in thousands) | Description | Amount | | :--- | :--- | | **Reported GAAP net loss attributable to Guess?, Inc.** | **$(32,928)** | | Asset impairment charges | $6,089 | | Fair value remeasurement of derivatives | $4,253 | | Proposed transaction costs | $1,834 | | Other adjustments (net) | $(1,468) | | **Adjusted net loss attributable to Guess?, Inc.** | **$(22,260)** | [Selected Condensed Consolidated Balance Sheet Data](index=17&type=section&id=Selected%20Condensed%20Consolidated%20Balance%20Sheet%20Data) As of May 3, 2025, the company's balance sheet showed total assets of $2.86 billion, with cash and cash equivalents at $151.2 million, a decrease from $241.7 million a year prior, inventories increasing to $638.2 million from $554.9 million YoY, and total stockholders' equity declining to $483.6 million from $565.5 million in the previous year Key Balance Sheet Items (in thousands) | Account | May 3, 2025 | May 4, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $151,192 | $241,654 | | Inventories | $638,188 | $554,903 | | Total assets | $2,863,425 | $2,748,641 | | Total liabilities | $2,329,838 | $2,140,808 | | Guess?, Inc. stockholders' equity | $483,566 | $565,473 | [Condensed Consolidated Cash Flow Data](index=18&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Data) In the first quarter, net cash used in operating activities was $73.4 million, a significant increase from the $22.9 million used in the prior-year period, with net cash used in investing activities at $22.5 million, resulting in a negative free cash flow of $96.4 million, deteriorating from a negative $45.6 million in the same quarter last year Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended May 3, 2025 | Three Months Ended May 4, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(73,412) | $(22,921) | | Net cash used in investing activities | $(22,479) | $(77,923) | | Net cash provided by (used in) financing activities | $52,551 | $(15,720) | Free Cash Flow Reconciliation (in thousands) | Line Item | Three Months Ended May 3, 2025 | Three Months Ended May 4, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(73,412) | $(22,921) | | Less: Purchases of property and equipment | $(21,907) | $(21,100) | | Less: Payments for property and equipment under finance leases | $(1,103) | $(1,533) | | **Free cash flow** | **$(96,422)** | **$(45,554)** |