Guess(GES) - 2025 Q4 - Annual Results

Revenue Performance - Revenues for Q4 FY 2025 increased to $932 million, up 5$3.0 billion, an 8% increase in U.S. dollars and a 10% increase in constant currency[20] - The Company's outlook for consolidated net revenue in fiscal 2026 is expected to increase between 3.9% and 6.2%[28] - Total net revenue for the three months ended February 1, 2025, was $932,252,000, representing a 5$891,050,000 in the prior year[57] - Total net revenue for the fiscal year ended February 1, 2025, reached $3,067,059 thousand, an 8$2,776,530 thousand in the previous fiscal year[60] Earnings and Profitability - GAAP EPS for Q4 FY 2025 was $1.16, a 32$1.71 in the prior year[9] - Adjusted EPS for Q4 FY 2025 was $1.48, down 26$2.01 in the same prior-year quarter[10] - GAAP diluted EPS for fiscal 2026 is projected to be between $1.03 and$1.37, while adjusted diluted EPS is expected to range from $1.32 to$1.76[28] - Adjusted net earnings per diluted share for the three months ended February 1, 2025, were $1.48, compared to$2.01 for the same period last year[50] - Reported GAAP net earnings attributable to Guess?, Inc. for the three months ended February 1, 2025, were $81,399,000, a decrease of 29$115,270,000 for the same period last year[52] Operating Margins - GAAP operating margin for FY 2025 decreased to 5.8%, down from 9.5% in FY 2024[21] - The operating margin for the Company's Europe segment decreased by 2.1% to 9.5% in fiscal 2025, down from 11.6% in fiscal 2024, mainly due to higher expenses and unfavorable currency impacts[26] - The Americas Retail segment's operating margin fell by 7.0% to 1.0% in fiscal 2025, compared to 8.0% in fiscal 2024, driven by negative retail comparable sales and increased expenses[26] Expenses and Costs - Selling, general and administrative expenses increased to $1,134,643 thousand, representing 37.9$1,121,044,000, up from $967,546,000 in the prior year, marking an increase of 15.8$73.4 million, a significant increase from $5.1 million in fiscal 2024, primarily due to a net unrealized loss of$60.7 million related to derivatives[25] Cash Flow and Capital Management - The Company anticipates free cash flow of $55 million for fiscal 2026, with net cash provided by operating activities at$125 million[32] - Free cash flow for the fiscal year ended February 1, 2025, was $29,761 thousand, down from$248,422 thousand in the previous year[67] - The Company repurchased approximately 2.6 million shares for $60.3 million during fiscal 2025, leaving a capacity of$139.8 million under the share repurchase program[34] Store Operations and Acquisitions - The Company operates 1,070 retail stores directly and has partners operating an additional 527 stores worldwide as of February 1, 2025[41] - The company operated a total of 1,597 stores as of February 1, 2025, an increase from 1,553 stores as of February 3, 2024[69] - The acquisition of rag & bone contributed to revenue growth and was a significant milestone for the company[5] - The Company acquired all operating assets and a 50% interest in the intellectual property assets of rag & bone on April 2, 2024, enhancing its market presence[41] Tax and Other Financial Metrics - The effective income tax rate for the fiscal year ended February 1, 2025, was 12.0%, compared to 10.8% in the previous year[49] - The adjusted effective income tax rate for the fiscal year ended February 1, 2025, was 24.0%, compared to 22.2% in the previous year[52] - Total assets increased to $2,766,678 thousand as of February 1, 2025, from$2,590,021 thousand a year earlier[62] - Long-term debt and finance lease obligations rose to $150,668 thousand from$28,210 thousand year-over-year[62]