Guess(GES) - 2025 Q1 - Quarterly Results

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]