Guess fourth quarter revenue drops 23%

United States
Published:  06 April, 2021

The U.S clothing brand and retailer has released its fourth quarter results, which show a revenue decrease of 23% to US$648 million in the fourth quarter and a 30% drop to US$1.88 billion in the 2021 fiscal year.

For the fourth quarter of 2021, Guess recorded GAAP net earnings of US$70.4 million, an 11.5% decrease from US$79.6 million compared to the same period in 2020. Adjusted net earnings were US$77.7 million, a 5.7% decrease from US$82.3 million compared to the same period in 2020.

Total net revenue for the fourth quarter of fiscal 2021 decreased 23% to US$648.5 million, from US$842.3 million in the same quarter in 2020. In constant currency, net revenue decreased by 25.9%.

In the U.S., fourth quarter revenues decreased by 24.2% in U.S. dollars and 24% in constant currency, while sales including e-commerce decreased 15% in U.S. dollars and constant currency compared with 2020. U.S. wholesale revenues decreased 15.3% in U.S. dollars and 14.1% in constant currency.

Europe fourth quarter revenues decreased 26.8% in U.S. dollars and 31.8% in constant currency. Retail comp sales, including e-commerce, increased 2% in U.S. dollars and decreased 5% in constant currency.

Asia fourth quarter revenues decreased 16.2% in U.S. dollars and 20.7% in constant currency. Comparable retail sales, including e-commerce, decreased 18% in U.S. dollars and 22% in constant currency.

Licensing fourth quarter revenues increased 12.2% in U.S. dollars.

Outlook

As a result of Covid-19, Guess is not providing detailed guidance for the first quarter or the full fiscal year ending January 29, 2022. The company expect revenues in the first quarter of fiscal 2022 to be down in the high-single digits versus the first quarter of fiscal 2020.

For the full fiscal year 2022, assuming there are no Covid-related shutdowns after the first quarter, Guess expects revenues to be down in the high single digits versus fiscal 2020.

The company says the five-year strategic plan that the company presented in December 2019 continues to be a solid roadmap for revenue growth, increased profitability and value creation. The Group’s financial plan is to achieve an operating margin of 10% by fiscal 2025, with net revenues of US$2.9 billion, a 2% CAGR from fiscal 2020.