Guess? Q4 Earnings Beat Estimates, Revenues Increase 4.6% Y/Y

Core Insights - Guess?, Inc. (GES) reported fourth-quarter fiscal 2025 results with both net sales and earnings surpassing Zacks Consensus Estimates, although earnings decreased compared to the previous year [1][3] - The sales growth was primarily attributed to the acquisition of rag & bone and modest gains in GES's core operations [1][4] Financial Performance - Adjusted quarterly earnings were $1.48 per share, exceeding the consensus estimate of $1.41, but down 26.4% from $2.01 in the prior-year period [3] - Net revenues reached $932.3 million, a 4.6% year-over-year increase, surpassing the consensus mark of $899 million; on a constant-currency basis, revenues rose 9% [4] - Gross margin contracted to 44.1% from 45.4% in the year-ago quarter, while SG&A expenses as a percentage of sales increased to 32.8% from 29.1% [5] Segment Performance - Americas Retail segment revenues rose 4% in U.S. dollars, but retail comparable sales declined 14% [7] - Americas Wholesale revenues surged 63% on a reported basis, but the operating margin fell to 12.8% due to newly acquired businesses [8] - Europe segment revenues increased 2% on a reported basis, with retail comp sales remaining flat [9] - Asia revenues decreased 15% on a reported basis, with retail comp sales dropping 16% [10] Financial Health - The company ended the quarter with cash and cash equivalents of $187.7 million and long-term debt of approximately $150.7 million [11] - Free cash flow for fiscal 2025 was $29.8 million, with expectations of $55 million for fiscal 2026 [11] Future Outlook - For fiscal 2026, GES anticipates revenue growth of 3.9-6.2% and adjusted EPS of $1.32-$1.76, down from $1.96 in fiscal 2025 [13] - In the first quarter of fiscal 2026, management expects revenue growth of 5.8-7.5% but anticipates a loss of 74-65 cents per share on an adjusted basis [14]