LOS ANGELES, Nov. 24, 2015
/PRNewswire/ -- Guess?, Inc. (NYSE: GES) today reported financial
results for its third quarter ended October 31, 2015.
Third Quarter Fiscal 2016 Highlights
- Americas Retail revenues decreased 7% in U.S. dollars
and 3% in constant currency; retail comp sales including e-commerce
decreased 6% in U.S. dollars and 2% in constant
currency
- Europe revenues
decreased 15% in U.S. dollars and 2% in constant
currency
- Asia revenues
decreased 17% in U.S. dollars and 9% in constant
currency
- Americas Wholesale revenues decreased 12% in U.S.
dollars and 3% in constant currency
- Operating earnings decreased 16%
- Earnings per share decreased 38%, including the
negative impact of currency of 55%
- Announces quarterly cash dividend of $0.225
- Invested $44.0 million
to repurchase 2.0 million of our common shares
Third Quarter Fiscal 2016 Results
For the third quarter of fiscal 2016, the Company recorded net
earnings of $12.4 million, a 40.1%
decrease compared to $20.8 million
for the third quarter of fiscal 2015. Diluted earnings per share
decreased 37.5% to $0.15, compared to
$0.24 for the prior-year quarter. The
negative impact of currency on earnings per share in the third
quarter of fiscal 2016 was approximately 13
cents.
Victor Herrero, Chief Executive
Officer, commented, "I am pleased to report that third quarter
results were better than our expectations. Our European retail
business was especially strong with a double digit comp sales
increase for the quarter for the first time in five years."
Mr. Herrero continued, "I am very pleased with the progress we
have made on the first three initiatives I identified on our last
earnings call. On our first initiative, elevating the quality of
our sales and merchandising organization, we have started building
product knowledge, improving our digital marketing and social media
capabilities, enhancing visual merchandising to emphasize best
sellers and breadth of product and ensuring that pricing of our
line delivers a consistent message. On our second initiative, to
build our Asia business, we have
made some critical hires and are deploying incremental capital to
fuel the growth of the markets in this region. Most critically, on
the third initiative, to reinforce a culture of purpose and
accountability, I am laser focused on driving the organization to
raise the level of execution as this will be a critical enabler of
successful achievement of our strategies."
Total net revenue for the third quarter of fiscal 2016 decreased
11.7% to $521.0 million, from
$589.8 million in the prior-year
quarter. In constant currency, total net revenue decreased 3.9%.
Refer to the accompanying tables for a summary of net revenue by
segment as well as information regarding the impact of foreign
currency exchange rate fluctuations on the Company's net
revenue.
Operating earnings for the third quarter of fiscal 2016
decreased 16.2% to $20.8 million
(including a $2.5 million unfavorable
currency translation impact), from $24.9
million in the prior-year period. Operating margin in the
third quarter decreased 20 basis points to 4.0%, compared to 4.2%
in the prior-year quarter, due primarily to the negative impact
from currency exchange rate fluctuations, partially offset by lower
store impairment charges. The negative impact of currency on
operating margin for the quarter was roughly 170 basis points.
- Operating margin for the Company's Americas Retail
segment increased 340 basis points to negative 0.9% in the third
quarter of fiscal 2016, compared to negative 4.3% in the prior-year
period. The increase in operating margin was driven primarily by a
lower SG&A rate due to lower store impairment
charges.
- Operating margin for the Company's Europe segment decreased 20 basis points to
3.8% in the third quarter of fiscal 2016, compared to 4.0% in the
prior-year period, due to lower gross margins, partially offset by
a lower SG&A rate. The lower gross margins were driven
primarily by the unfavorable impact from currency exchange rate
fluctuations on product costs, partially offset by higher initial
mark-ups. The lower SG&A rate was due primarily to the
favorable impact on the fixed cost structure resulting from
positive same store sales and lower store impairment charges,
partially offset by the unfavorable impact from lower wholesale
shipments.
- Operating margin for the Company's Asia segment increased 170 basis points to
4.7% in the third quarter of fiscal 2016, compared to 3.0% in the
prior-year period. The increase in operating margin was due to
higher gross margins and a lower SG&A rate driven by overall
leveraging of expenses as we phase out of our G by GUESS concept in
South Korea.
- Operating margin for the Company's Americas Wholesale
segment decreased 560 basis points to 20.5% in the third quarter of
fiscal 2016, compared to 26.1% in the prior-year period. The
decrease in operating margin was due to lower product margins
driven primarily by lower initial mark-ups and the unfavorable
impact from currency exchange rate fluctuations on product
costs.
- Operating margin for the Company's Licensing segment
increased 140 basis points to 89.5% in the third quarter of fiscal
2016, compared to 88.1% in the prior-year period.
Other net income, which primarily includes net realized and
unrealized gains on non-operating assets, partially offset by net
unrealized mark-to-market revaluation losses on foreign currency
balances, was $0.2 million for the
third quarter of fiscal 2016, compared to $7.5 million in the prior-year quarter.
Nine-Month Period Results
Net earnings for the nine months ended October 31, 2015 were $34.1 million, a decrease of 16.2% compared to
$40.6 million for the nine months
ended November 1, 2014. Diluted
earnings per share decreased 14.9% to $0.40, compared to $0.47 for the prior-year period. The negative
impact of currency on earnings per share for the nine months ended
October 31, 2015 was approximately
24 cents.
Total net revenue for the first nine months of fiscal 2016
decreased 10.2% to $1.55 billion,
from $1.72 billion in the prior-year
period. In constant currency, total net revenue decreased 1.6%.
Refer to the accompanying tables for a summary of net revenue by
segment as well as information regarding the impact of foreign
currency exchange rate fluctuations on the Company's net
revenue.
Operating earnings for the first nine months of fiscal 2016
decreased 2.6% to $51.4 million
(including a $5.7 million unfavorable
currency translation impact), from $52.7
million in the prior-year period. Operating margin in the
first nine months of fiscal 2016 increased 20 basis points to 3.3%,
compared to 3.1% in the prior-year period. The increase in
operating margin was driven by lower store impairment charges and
higher initial mark-ups, partially offset by the unfavorable impact
from currency exchange rate fluctuations and the negative impact on
the Company's fixed cost structure from negative same store sales
in Americas Retail. The negative impact of currency on operating
margin for the first nine months of fiscal 2016 was roughly 130
basis points.
- Operating margin for the Company's Americas Retail
segment increased 270 basis points to negative 0.6% in the first
nine months of fiscal 2016, compared to negative 3.3% in the
prior-year period, due to a lower SG&A rate and higher gross
margins. The lower SG&A rate was driven by lower store
impairment charges. The higher gross margins were due primarily to
higher initial mark-ups, partially offset by the negative impact on
the fixed cost structure resulting from negative comparable store
sales and the unfavorable impact from currency exchange rate
fluctuations on product costs.
- Operating margin for the Company's Europe segment decreased 20 basis points to
4.2% in the first nine months of fiscal 2016, compared to 4.4% in
the prior-year period, due to lower gross margins, partially offset
by a lower SG&A rate. The lower gross margins were driven
primarily by the unfavorable impact from currency exchange rate
fluctuations on product costs, partially offset by higher initial
mark-ups. The lower SG&A rate was due primarily to the
favorable impact on the fixed cost structure resulting from
positive same store sales and lower store impairment charges,
partially offset by the unfavorable impact from lower wholesale
shipments.
- Operating margin for the Company's Asia segment increased 80 basis points to 4.6%
in the first nine months of fiscal 2016, compared to 3.8% in the
prior-year period. The increase in operating margin was driven by a
lower SG&A rate due primarily to an overall leveraging of
expenses as we phase out of our G by GUESS concept in South Korea.
- Operating margin for the Company's Americas Wholesale
segment decreased 230 basis points to 18.2% in the first nine
months of fiscal 2016, compared to 20.5% in the prior-year period,
driven by lower product margins due primarily to lower initial
mark-ups.
- Operating margin for the Company's Licensing segment
decreased 80 basis points to 89.0% in the first nine months of
fiscal 2016, compared to 89.8% in the prior-year
period.
Other net income, which primarily includes net realized and
unrealized gains on non-operating assets and net unrealized and
realized mark-to-market revaluation gains on foreign currency
contracts, was $6.6 million for the
first nine months of fiscal 2016, compared to $11.1 million in the prior-year period.
Dividends
The Company's Board of Directors has approved a quarterly cash
dividend of $0.225 per share on the
Company's common stock. The dividend will be payable on
December 24, 2015 to shareholders of record at the close of
business on December 9, 2015.
Outlook
The following guidance assumes that foreign currency exchange
rates remain at prevailing rates:
The Company's expectations for the fourth quarter of fiscal 2016
ending January 30, 2016, are as follows:
- Consolidated net revenues are expected to range between a
decline of 1.5% and an increase of 1.5% in constant currency.
Currency headwinds are expected to negatively impact consolidated
revenue growth by approximately 5.5%, for a net decline between
7.0% and 4.0%.
- Operating margin is expected to be between 11.0% and
12.0% and includes 170 basis points of currency
headwind.
- Diluted earnings per share are expected to be in the
range of $0.53 to $0.62. The
estimated impact on earnings per share of the currency headwinds is
approximately $0.18.
The Company updated its outlook for the fiscal year ending
January 30, 2016, which is now as follows:
- Consolidated net revenues are expected to decline between
1.5% and 0.5% in constant currency. Currency headwinds are expected
to negatively impact consolidated revenue growth by approximately
8.0%, for a net decline between 9.5% and 8.5%.
- Operating margin is expected to be between 5.5% and 6.0%
and includes 130 basis points of currency headwind.
- Diluted earnings per share are expected to be in the
range of $0.93 to $1.02. The
estimated impact on earnings per share of the currency headwinds is
approximately $0.40.
On a segment basis, the Company expects the following ranges for
percentage changes for comparable store sales ("comps") and net
revenue in constant currency and U.S. dollars compared to the same
prior-year period:
Outlook by
Segment1
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Fourth Quarter of
Fiscal 2016
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Fiscal Year
2016
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Constant
Currency2
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U.S.
Dollars
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Constant
Currency2
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U.S.
Dollars
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Americas
Retail:
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Comps
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down LSD to up LSD
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down LSD to
flat
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down LSD
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down LSD
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Net
Revenue
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down LSD to up LSD
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down LSD to
flat
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down LSD
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down MSD to
LSD
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Europe:
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Comps
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up MSD
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__
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up LSD to
MSD
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__
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Net
Revenue
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up LSD
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down HSD to
MSD
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up LSD
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down
low-teens
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Asia:
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Net
Revenue
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down low teens to
MSD
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down mid-teens to
HSD
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down HSD to
MSD
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down mid-teens to
low-teens
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Americas
Wholesale:
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Net
Revenue
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down LSD
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down HSD
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down LSD
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down LDD
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Licensing:
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Net
Revenue
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__
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down LSD
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__
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down MSD
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Notes
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1
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As used in the table
above, "LSD" is used to refer to the range of Low-Single-Digits,
"MSD" is used to refer to the range of Mid-Single-Digits, "HSD" is
used to refer to the range of High-Single-Digits, and "LDD" is used
to refer to the range of Low-Double-Digits.
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2
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Eliminates the impact
of expected foreign currency translation to give investors a better
understanding of the underlying trends within the
business.
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Presentation of Non-GAAP Information
The financial information presented in this release includes
non-GAAP financial measures such as constant currency financial
information and free cash flow measures. The non-GAAP measures are
provided in addition to, and not as alternatives for, the Company's
reported GAAP results.
This release includes certain constant currency financial
information. Foreign currency exchange rate fluctuations affect the
amount reported from translating the Company's foreign revenue,
expenses and balance sheet amounts into U.S. dollars. These rate
fluctuations can have a significant effect on reported operating
results under GAAP. The Company provides constant currency
information to enhance the visibility of underlying business
trends, excluding the effects of changes in foreign currency
translation rates. To calculate net revenue, comparable store sales
and earnings (loss) from operations on a constant currency basis,
operating or forecasted results for the current-year period are
translated into U.S. dollars at the average exchange rates in
effect during the comparable period of the prior year. The constant
currency calculations do not adjust for the impact of revaluing
specific transactions denominated in a currency that is different
to the functional currency of that entity when exchange rates
fluctuate. However, in calculating the estimated impact of currency
on our earnings per share guidance for the fourth quarter and full
year of fiscal 2016, the Company estimates gross margin (including
the impact of merchandise-related hedges) and expenses using the
appropriate prior-year rates, translates the estimated foreign
earnings at the comparable prior-year rates, and excludes the
year-over-year earnings impact of gains or losses arising from
balance sheet remeasurement and foreign currency contracts not
designated as merchandise hedges. The constant currency information
presented may not be comparable to similarly titled measures
reported by other companies.
The Company also includes information regarding its free cash
flows in this release. The Company calculates free cash flows as
cash flows from operating activities less purchases of property and
equipment. Free cash flows is not intended to be an alternative to
cash flows from operating activities as a measure of liquidity, but
rather provides additional visibility to investors regarding how
much cash is generated for discretionary and non-discretionary
items after deducting purchases of property and equipment. Free
cash flow information presented may not be comparable to similarly
titled measures reported by other companies. A reconciliation of
reported GAAP cash flows from operating activities to the
comparable non-GAAP free cash flow measure is provided in the
accompanying tables.
Investor Conference Call
The Company will hold a conference call at 4:45 pm (ET) on November 24, 2015 to discuss
the news announced in this press release. A live webcast of the
conference call will be accessible at www.guess.com via the
"Investor Relations" link. The webcast will be archived on the
website for 30 days.
About Guess?
Guess?, Inc. designs, markets, distributes and licenses a
lifestyle collection of contemporary apparel, denim, handbags,
watches, footwear and other related consumer products. Guess?
products are distributed through branded Guess? stores as well as
better department and specialty stores around the world. As of
October 31, 2015, the Company directly operated 826 retail
stores in the Americas, Europe and
Asia. The Company's licensees and
distributors operated 799 additional retail stores worldwide. As of
October 31, 2015, the Company and its licensees and
distributors operated in more than 90 countries worldwide. For more
information about the Company, please visit www.guess.com.
Forward-Looking Statements
Except for historical information contained herein, certain
matters discussed in this press release or the related conference
call and webcast, including statements concerning the Company's
expectations, future prospects and strategic initiatives (including
those identified by our Chief Executive Officer, Victor Herrero), as well as guidance for the
fourth quarter and full year of fiscal 2016, are forward-looking
statements that are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements, which are frequently indicated by terms
such as "expect," "will," "goal," "strategy," "believe,"
"continue," "outlook," "plan" and similar terms, are only
expectations, and involve known and unknown risks and
uncertainties, which may cause actual results in future periods to
differ materially from what is currently anticipated. Factors which
may cause actual results in future periods to differ materially
from current expectations include, among others: our ability to
maintain our brand image and reputation; domestic and international
economic conditions, including economic and other events that could
negatively impact consumer confidence and discretionary consumer
spending; changes in the competitive marketplace and in our
commercial relationships; our ability to anticipate and respond to
consumer preferences and trends; our ability to manage our
inventory commensurate with customer demand; risks related to the
timing and costs of delivering merchandise to our stores and our
wholesale customers; our ability to effectively operate our various
retail concepts, including securing, renewing, modifying or
terminating leases for store locations; our ability to successfully
implement our growth strategies and other strategic initiatives;
our ability to successfully implement plans for cost savings;
unexpected obligations arising from new or existing litigation, tax
and other regulatory proceedings; accounting adjustments identified
from subsequent events arising after issuance of this release;
risks associated with our foreign operations, such as violations of
laws prohibiting improper payments and the burdens of complying
with a variety of foreign laws and regulations; risks associated
with the acts or omissions of our third party vendors, including a
failure to comply with our vendor code of conduct or other
policies; risks associated with cyber attacks and other cyber
security risks; and changes in economic, political, social
and other conditions affecting our foreign operations and sourcing,
including the impact of currency fluctuations, global tax rates and
economic and market conditions in Eastern
Europe, Southern Europe and
Asia (particularly China and Korea). In addition to these
factors, the economic, technological, managerial, and other risks
identified in the Company's most recent annual report on Form 10-K
and other filings with the Securities and Exchange Commission,
including but not limited to the risk factors discussed therein,
could cause actual results to differ materially from current
expectations. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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Contact:
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Guess?,
Inc.
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Fabrice
Benarouche
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VP, Finance and
Investor Relations
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(213)
765-5578
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Guess?, Inc. and
Subsidiaries
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Condensed
Consolidated Statements of Income
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(amounts in
thousands, except per share data)
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Three Months
Ended
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Nine Months
Ended
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October 31,
2015
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November 1,
2014
|
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October 31,
2015
|
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November 1,
2014
|
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$
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%
|
|
$
|
%
|
|
$
|
%
|
|
$
|
%
|
|
|
|
|
|
|
|
|
|
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|
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Product
sales
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$
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493,214
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94.7%
|
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|
$
|
557,862
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|
94.6%
|
|
|
$
|
1,467,110
|
|
94.9%
|
|
|
$
|
1,636,569
|
|
95.1%
|
|
Net
royalties
|
|
27,750
|
|
5.3%
|
|
|
31,972
|
|
5.4%
|
|
|
78,942
|
|
5.1%
|
|
|
84,377
|
|
4.9%
|
|
Net
revenue
|
|
520,964
|
|
100.0%
|
|
|
589,834
|
|
100.0%
|
|
|
1,546,052
|
|
100.0%
|
|
|
1,720,946
|
|
100.0%
|
|
|
|
|
|
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|
|
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|
|
|
|
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|
Cost of product
sales
|
|
337,300
|
|
64.7%
|
|
|
375,876
|
|
63.7%
|
|
|
998,786
|
|
64.6%
|
|
|
1,113,980
|
|
64.7%
|
|
|
|
|
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|
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|
Gross
profit
|
|
183,664
|
|
35.3%
|
|
|
213,958
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|
36.3%
|
|
|
547,266
|
|
35.4%
|
|
|
606,966
|
|
35.3%
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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Selling, general and
administrative expenses
|
|
162,826
|
|
31.3%
|
|
|
189,093
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|
32.1%
|
|
|
495,874
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|
32.1%
|
|
|
554,220
|
|
32.2%
|
|
|
|
|
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Earnings from
operations
|
|
20,838
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|
4.0%
|
|
|
24,865
|
|
4.2%
|
|
|
51,392
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|
3.3%
|
|
|
52,746
|
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(292)
|
|
(0.0%)
|
|
|
(596)
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|
(0.1%)
|
|
|
(1,456)
|
|
(0.1%)
|
|
|
(1,893)
|
|
(0.1%)
|
|
|
|
Interest
income
|
|
273
|
|
0.0%
|
|
|
351
|
|
0.1%
|
|
|
784
|
|
0.1%
|
|
|
1,076
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|
0.1%
|
|
|
|
Other, net
|
|
247
|
|
0.0%
|
|
|
7,484
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|
1.2%
|
|
|
6,581
|
|
0.4%
|
|
|
11,131
|
|
0.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Earnings before
income tax expense
|
|
21,066
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|
4.0%
|
|
|
32,104
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|
5.4%
|
|
|
57,301
|
|
3.7%
|
|
|
63,060
|
|
3.7%
|
|
|
|
|
|
|
|
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|
|
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|
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|
Income tax
expense
|
|
8,005
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|
1.5%
|
|
|
10,594
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|
1.8%
|
|
|
21,774
|
|
1.4%
|
|
|
21,465
|
|
1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
13,061
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|
2.5%
|
|
|
21,510
|
|
3.6%
|
|
|
35,527
|
|
2.3%
|
|
|
41,595
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to noncontrolling interests
|
|
617
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|
0.1%
|
|
|
722
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|
0.1%
|
|
|
1,453
|
|
0.1%
|
|
|
954
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Guess?, Inc.
|
|
$
|
12,444
|
|
2.4%
|
|
|
$
|
20,788
|
|
3.5%
|
|
|
$
|
34,074
|
|
2.2%
|
|
|
$
|
40,641
|
|
2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
common share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.15
|
|
|
|
$
|
0.24
|
|
|
|
$
|
0.40
|
|
|
|
$
|
0.48
|
|
|
|
|
Diluted
|
|
$
|
0.15
|
|
|
|
$
|
0.24
|
|
|
|
$
|
0.40
|
|
|
|
$
|
0.47
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
83,985
|
|
|
|
84,624
|
|
|
|
84,651
|
|
|
|
84,565
|
|
|
|
|
Diluted
|
|
84,373
|
|
|
|
84,832
|
|
|
|
84,847
|
|
|
|
84,789
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective Tax
Rate
|
|
38.0%
|
|
|
|
33.0%
|
|
|
|
38.0%
|
|
|
|
34.0%
|
|
|
Guess?, Inc. and
Subsidiaries
|
Consolidated
Segment Data
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
|
|
October
31,
|
|
November
1,
|
|
%
|
|
October
31,
|
|
November
1,
|
|
%
|
|
|
|
|
|
|
2015
|
|
2014
|
|
change
|
|
2015
|
|
2014
|
|
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
$
|
226,599
|
|
|
$
|
243,238
|
|
|
(7%)
|
|
$
|
673,304
|
|
|
$
|
715,582
|
|
|
(6%)
|
|
Europe
|
160,696
|
|
|
189,852
|
|
|
(15%)
|
|
497,468
|
|
|
584,270
|
|
|
(15%)
|
|
Asia
|
59,100
|
|
|
71,271
|
|
|
(17%)
|
|
179,880
|
|
|
205,656
|
|
|
(13%)
|
|
Americas
Wholesale1
|
46,819
|
|
|
53,501
|
|
|
(12%)
|
|
116,458
|
|
|
131,061
|
|
|
(11%)
|
|
Licensing
|
27,750
|
|
|
31,972
|
|
|
(13%)
|
|
78,942
|
|
|
84,377
|
|
|
(6%)
|
|
|
|
|
|
|
$
|
520,964
|
|
|
$
|
589,834
|
|
|
(12%)
|
|
$
|
1,546,052
|
|
|
$
|
1,720,946
|
|
|
(10%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
$
|
(2,053)
|
|
|
$
|
(10,517)
|
|
|
80%
|
|
$
|
(4,018)
|
|
|
$
|
(23,578)
|
|
|
83%
|
|
Europe
|
6,150
|
|
|
7,660
|
|
|
(20%)
|
|
20,668
|
|
|
25,541
|
|
|
(19%)
|
|
Asia
|
2,794
|
|
|
2,126
|
|
|
31%
|
|
8,294
|
|
|
7,743
|
|
|
7%
|
|
Americas
Wholesale1
|
9,583
|
|
|
13,940
|
|
|
(31%)
|
|
21,202
|
|
|
26,860
|
|
|
(21%)
|
|
Licensing
|
24,842
|
|
|
28,157
|
|
|
(12%)
|
|
70,282
|
|
|
75,787
|
|
|
(7%)
|
|
Corporate
Overhead
|
(20,478)
|
|
|
(16,501)
|
|
|
24%
|
|
(65,036)
|
|
|
(59,607)
|
|
|
9%
|
|
|
|
|
|
|
$
|
20,838
|
|
|
$
|
24,865
|
|
|
(16%)
|
|
$
|
51,392
|
|
|
$
|
52,746
|
|
|
(3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
(0.9%)
|
|
|
(4.3%)
|
|
|
|
|
(0.6%)
|
|
|
(3.3%)
|
|
|
|
|
Europe
|
3.8%
|
|
|
4.0%
|
|
|
|
|
4.2%
|
|
|
4.4%
|
|
|
|
|
Asia
|
4.7%
|
|
|
3.0%
|
|
|
|
|
4.6%
|
|
|
3.8%
|
|
|
|
|
Americas
Wholesale1
|
20.5%
|
|
|
26.1%
|
|
|
|
|
18.2%
|
|
|
20.5%
|
|
|
|
|
Licensing
|
89.5%
|
|
|
88.1%
|
|
|
|
|
89.0%
|
|
|
89.8%
|
|
|
|
|
Total
Company
|
4.0%
|
|
|
4.2%
|
|
|
|
|
3.3%
|
|
|
3.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
In the second quarter
of fiscal 2016, the Company changed the names of its "North
American Retail" and "North American Wholesale" segments to
"Americas Retail" and "Americas Wholesale" to better reflect that
these segments are inclusive of its operations in North America as
well as Central and South America. There have been no changes to
the underlying reporting in either segment.
|
Guess?, Inc. and
Subsidiaries
|
Constant Currency
Financial Measures
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
October 31,
2015
|
|
November 1,
2014
|
|
%
change
|
|
As
Reported
|
|
Foreign Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
$
|
226,599
|
|
|
$
|
9,570
|
|
|
$
|
236,169
|
|
|
$
|
243,238
|
|
|
(7%)
|
|
(3%)
|
|
Europe
|
160,696
|
|
|
25,873
|
|
|
186,569
|
|
|
189,852
|
|
|
(15%)
|
|
(2%)
|
|
Asia
|
59,100
|
|
|
5,432
|
|
|
64,532
|
|
|
71,271
|
|
|
(17%)
|
|
(9%)
|
|
Americas
Wholesale1
|
46,819
|
|
|
4,874
|
|
|
51,693
|
|
|
53,501
|
|
|
(12%)
|
|
(3%)
|
|
Licensing
|
27,750
|
|
|
—
|
|
|
27,750
|
|
|
31,972
|
|
|
(13%)
|
|
(13%)
|
|
|
|
|
|
|
$
|
520,964
|
|
|
$
|
45,749
|
|
|
$
|
566,713
|
|
|
$
|
589,834
|
|
|
(12%)
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
|
|
October 31,
2015
|
|
November 1,
2014
|
|
%
change
|
|
As
Reported
|
|
Foreign Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
$
|
673,304
|
|
|
$
|
22,739
|
|
|
$
|
696,043
|
|
|
$
|
715,582
|
|
|
(6%)
|
|
(3%)
|
|
Europe
|
497,468
|
|
|
104,265
|
|
|
601,733
|
|
|
584,270
|
|
|
(15%)
|
|
3%
|
|
Asia
|
179,880
|
|
|
10,994
|
|
|
190,874
|
|
|
205,656
|
|
|
(13%)
|
|
(7%)
|
|
Americas
Wholesale1
|
116,458
|
|
|
9,886
|
|
|
126,344
|
|
|
131,061
|
|
|
(11%)
|
|
(4%)
|
|
Licensing
|
78,942
|
|
|
—
|
|
|
78,942
|
|
|
84,377
|
|
|
(6%)
|
|
(6%)
|
|
|
|
|
|
|
$
|
1,546,052
|
|
|
$
|
147,884
|
|
|
$
|
1,693,936
|
|
|
$
|
1,720,946
|
|
|
(10%)
|
|
(2%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
In the second quarter
of fiscal 2016, the Company changed the names of its "North
American Retail" and "North American Wholesale" segments to
"Americas Retail" and "Americas Wholesale" to better reflect that
these segments are inclusive of its operations in North America as
well as Central and South America. There have been no changes to
the underlying reporting in either segment.
|
Guess?, Inc. and
Subsidiaries
|
Selected Condensed
Consolidated Balance Sheet Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
October
31,
|
|
January 31,
|
|
November
1,
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
402,386
|
|
|
$
|
483,483
|
|
|
$
|
374,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables,
net
|
195,825
|
|
|
216,205
|
|
|
236,053
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
373,103
|
|
|
319,078
|
|
|
412,573
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
assets
|
78,831
|
|
|
92,593
|
|
|
114,928
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
240,058
|
|
|
259,524
|
|
|
290,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
232,269
|
|
|
230,522
|
|
|
225,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
1,522,472
|
|
|
$
|
1,601,405
|
|
|
$
|
1,654,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
capital lease obligations and borrowings
|
$
|
4,450
|
|
|
$
|
1,548
|
|
|
$
|
1,707
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
322,600
|
|
|
300,418
|
|
|
314,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt and
capital lease obligations
|
2,189
|
|
|
6,165
|
|
|
6,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
174,288
|
|
|
199,391
|
|
|
198,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable and
nonredeemable noncontrolling interests
|
17,004
|
|
|
20,027
|
|
|
20,959
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc.
stockholders' equity
|
1,001,941
|
|
|
1,073,856
|
|
|
1,110,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
1,522,472
|
|
|
$
|
1,601,405
|
|
|
$
|
1,654,096
|
|
Guess?, Inc. and
Subsidiaries
|
Condensed
Consolidated Cash Flow Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
October
31,
|
|
November
1,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
$
|
64,727
|
|
|
$
|
(4,884)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(30,529)
|
|
|
(48,055)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
|
(107,994)
|
|
|
(59,534)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
|
(7,301)
|
|
|
(15,597)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
|
(81,097)
|
|
|
(128,070)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
|
483,483
|
|
|
502,945
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
|
$
|
402,386
|
|
|
$
|
374,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
$
|
54,013
|
|
|
$
|
64,202
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent
|
|
|
$
|
193,292
|
|
|
$
|
213,118
|
|
Guess?, Inc. and
Subsidiaries
|
Reconciliation of
Net Cash Provided by (Used in) Operating Activities to Free Cash
Flow
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
October
31,
|
|
November
1,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
$
|
64,727
|
|
|
$
|
(4,884)
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Purchases of
property and equipment
|
|
|
(40,293)
|
|
|
(53,208)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
$
|
24,434
|
|
|
$
|
(58,092)
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Data
|
International
Store Count
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
October 31, 2015
|
|
As of
November 1, 2014
|
|
|
|
|
Total
|
|
Directly
Operated
|
|
Total
|
|
Directly
Operated
|
Region
|
|
|
|
Stores
|
|
Stores
|
|
Stores
|
|
Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
United States and
Canada
|
461
|
|
460
|
|
492
|
|
492
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe and the Middle
East
|
593
|
|
274
|
|
605
|
|
265
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
475
|
|
49
|
|
491
|
|
48
|
|
|
|
|
|
|
|
|
|
|
|
|
Central and South
America
|
96
|
|
43
|
|
88
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,625
|
|
826
|
|
1,676
|
|
844
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Directly Operated
Retail Store Data
|
U.S. and
Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
|
|
|
|
|
|
|
|
|
October
31,
|
|
November
1,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores at
the beginning of the year
|
|
|
481
|
|
494
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
openings
|
|
|
10
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
closures
|
|
|
(31)
|
|
(15)
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores at
the end of the period
|
|
|
460
|
|
492
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total store square
footage at the end of the period
|
|
|
2,225,000
|
|
2,351,000
|
Guess?, Inc. and
Subsidiaries
|
Americas Retail
Net Revenue
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
October
31,
|
|
November
1,
|
|
%
|
|
October
31,
|
|
November
1,
|
|
%
|
|
2015
|
|
2014
|
|
change
|
|
2015
|
|
2014
|
|
change
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
stores
|
$
|
206,466
|
|
|
$
|
226,217
|
|
|
(8.7%)
|
|
$
|
616,727
|
|
|
$
|
667,389
|
|
|
(7.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce
sites
|
20,133
|
|
|
17,021
|
|
|
18.3%
|
|
56,577
|
|
|
48,193
|
|
|
17.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
226,599
|
|
|
$
|
243,238
|
|
|
(6.8%)
|
|
$
|
673,304
|
|
|
$
|
715,582
|
|
|
(5.9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Change in Comparable Store Sales
|
U.S. and
Canada
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
October 31,
2015
|
|
October 31,
2015
|
|
U.S.
Dollars
|
|
Constant
Currency
|
|
U.S.
Dollars
|
|
Constant
Currency
|
|
|
|
|
|
|
|
|
Excluding e-commerce
sales
|
(7.7%)
|
|
(4.2%)
|
|
(6.5%)
|
|
(3.7%)
|
|
|
|
|
|
|
|
|
Impact of e-commerce
sales
|
2.0%
|
|
2.1%
|
|
1.7%
|
|
1.8%
|
|
|
|
|
|
|
|
|
Including e-commerce
sales
|
(5.7%)
|
|
(2.1%)
|
|
(4.8%)
|
|
(1.9%)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/guess-inc-reports-third-quarter-results-300184090.html
SOURCE Guess?, Inc.