US fashion brand Guess’ revenue grew to $2.69 billion in FY23

American fashion brand Guess, Inc reported a 4 percent increase in net revenue to $2.69 billion in fiscal year 2023 (FY23), from $2.59 billion in FY22. In constant currency, net revenue grew 12 percent. The company’s GAAP net income fell 12.7 percent to $149.6 million, from $171.4 million in FY22. GAAP diluted EPS also fell 15.2 percent to $2.18 in FY23, from $2.57 in FY22.

However, the company recorded an adjusted net income of $161.1 million in FY23, down 17.3 percent from $194.7 million in FY22. Adjusted diluted EPS fell 6.2 percent to $2.74 in FY23, from $2.92 in FY22, Estimates, Inc said in a press release.

The company’s Americas retail revenue was flat in US dollars but increased 1 percent in constant currency. Americas wholesale revenue rose 2 percent in US dollars and 3 percent in constant currency.

Estimates report a 4 percent rise in net income to $2.69 billion in FY23 However, GAAP net income fell 12.7 percent to $149.6 million. For Q4 FY23, net revenue rose 2 percent to $817.8 million, while GAAP income from operations fell 17 percent to $103.6 million. Estimates expect consolidated revenues to grow by 1-3 percent in FY24

Europe revenue grew 6 percent in US dollars and 21 percent in constant currency. Asia revenue rose 1 percent in US dollars and 12 percent in constant currency.

Licensing revenue increased 7 percent in both US dollars and constant currency.

For FY23, Guess, Inc.’s GAAP income from operations fell 19 percent to $248.2 million, from $305 million in FY22. GAAP operating margin fell 2.6 percent to 9.2 percent in FY23, from 11.8 percent in FY22. Currency had a negative impact of around 140 basis points on operating margins for FY23.

Adjusted income from estimated operations also fell 15 percent to $262.9 million in FY23, from $310.6 million in FY22. Adjusted operating margin declined 2.2 percent to 9.8 percent, from 12 percent in FY22, primarily offset by higher costs, unfavorable currency effects, higher markdowns, and lower rent relief, partially offset by overall cost benefits.

For the fourth quarter (Q4) of FY23, Assumption, Inc reported GAAP net income of $95.8 million, an increase of 40.1 percent over the same quarter of the previous year. The company also reported a 36.5 percent increase in GAAP diluted net earnings per share (EPS) to $1.42 over Q4 of FY22. Adjusted net income was $98.2 million, a 30.6 percent increase from Q4 FY22. Additionally, the company’s adjusted diluted EPS rose 52.6 percent to $1.74 from Q4 FY22.

Total net income for Q4 FY23 rose 2 percent to $817.8 million from $799.9 million in the same quarter of the previous year. However, U.S. retail sales fell 1 percent in both U.S. dollar and constant currency terms. Americas wholesale revenue fell 27 percent in both US dollar and constant currency terms.

On the other hand, Europe’s revenue grew by 10 percent year-on-year (YoY) in US dollar terms and 20 percent in constant currency in the fourth quarter of FY23. Asia revenue fell 8 percent YoY in US dollars and rose 1 percent in constant currencies. Licensing revenue fell 8 percent year over year in both U.S. dollars and constant currency terms.

GAAP income from operations in Q4 FY23 fell 17 percent to $103.6 million, from $125.4 million in the same quarter of the previous year. GAAP operating margin for Q4 FY23 declined 3 percent to 12.7 percent from 15.7 percent in the same quarter of the previous year. Adjusted income from operations also fell 14 percent to $107.5 million from $125.7 million in Q4 of FY22. Adjusted operating margin declined by 2.6 per cent to 13.1 per cent from 15.7 per cent in Q4 FY22.

For FY24, estimates expect consolidated revenues to grow by 1-3 percent, while GAAP operating margins are projected to be in the range of 8-9 percent.

For Q1 FY24, the company expects consolidated revenue to decline by 7-6 percent, while GAAP operating margin is estimated to be in the range of minus 1.2 percent to minus 0.5 percent, the release added.

“Over the past three years, we have transformed our company. This is an ongoing project focused on our brand elevation. We continue to work to improve our products every day by constantly investing in increasing the quality of our products with a strong focus on sustainability. Our customers are responding well to our collections, and it is clear that our marketing efforts are paying off. Our brand momentum is strong, and we are well positioned in the market to continue to gain market share,” said Paul Marciano, co-founder and chief creative officer.

Fibre2Fashion News Desk (DP)