Guess sees 100% increase year-on-year

United States
Published:  28 May, 2021
Credit: Guess

The U.S clothing brand and retailer has released its first quarter results for fiscal 2022, reporting a 100% increase compared to the first quarter of 2021, a 3% decrease from the same period in 2020.

For the first quarter of fiscal 2022, the company recorded GAAP net earnings of US$12 million, a 107.6% increase from a GAAP net loss of US$157.7 million for the first quarter of fiscal 2021.

The company’s adjusted net earnings were US$13.9 million, a 111.7% increase from the company’s adjusted net loss of US$118.9 million for the first quarter of fiscal 2021.

Total net revenue for the first quarter of fiscal 2022 increased 99.8% to US$520 million, from US$260.3 million in the same prior-year quarter. In constant currency, net revenue increased by 90.3%.

U.S. retail revenues increased 108.5% in U.S. dollars and 105.9% in constant currency. Retail comp sales including e-commerce increased 6% in U.S. dollars and 5% in constant currency. U.S. wholesale revenues increased 75.6% in U.S. dollars and 71.0% in constant currency. Europe revenues increased 127.1% in U.S. dollars and 110% in constant currency. Retail comp sales including e-commerce increased 44% in U.S. dollars and 32% in constant currency. Asia revenues increased 37.8% in U.S. dollars and 29.3% in constant currency. Retail comp sales including e-commerce increased 32% in U.S. dollars and 23% in constant currency.

Other expense, net, was US$2.7 million for the first quarter of fiscal 2022, compared to US$19.6 million in the same prior-year quarter. The change was driven primarily by market volatility which resulted in lower net unrealised losses on the translation of foreign currency balances compared to higher net unrealised losses in the quarter ended May 2, 2020.

Outlook
Given the current circumstances regarding Covid-19, Guess is not providing detailed guidance for the second quarter or the full fiscal year ending January 29, 2022. The company expects revenues in the second quarter of fiscal 2022 to be down mid-single digits versus the second quarter of fiscal 2020 as pandemic-related shutdowns and traffic declines are partially offset by continued momentum in its global e-commerce business. For the full fiscal year 2022, assuming there are no Covid-related shutdowns past the second quarter, Guess expects revenues to be down mid-single digits versus fiscal 2020 and operating margin to reach approximately 8.6 %.