- Prachi Singh |
For the first quarter of fiscal 2018, Guess recorded GAAP net loss of 21.3 million dollars, a 15.4 percent improvement compared to 25.2 million dollars for the first quarter of fiscal 2017. GAAP diluted loss per share improved 13.3 percent to 0.26 dollar compared to 0.30 dollar for the prior-year quarter. Adjusted net loss was 19.4 million dollars, a 0.5 percent deterioration from 19.3 million dollars for the same quarter of fiscal 2017. Adjusted diluted loss per share deteriorated 4.3 percent to 0.24 dollar from 0.23 dollar for the prior-year quarter.
Commenting on the company’s first quarter trading, Victor Herrero, Chief Executive Officer, said in a statement, "We are pleased to report that our first quarter results finished above the high-end of our expectations for revenues, adjusted operating margin and earnings per share. We continued to see strong performance in our international businesses."
First quarter financial highlights
Total net revenue for the first quarter of fiscal 2018 increased 2.2 percent to 458.6 million dollars compared to 448.8 million dollars in the prior-year quarter. In constant currency, net revenue increased by 4 percent.
Americas retail revenues decreased 14.9 percent in US dollars and 14.7 percent in constant currency. Retail comp sales including e-commerce decreased 15 percent in US dollars and constant currency. Europe revenues increased 23.3 percent in US dollars and 29.1 percent in constant currency. Retail comp sales including e-commerce increased 5 percent in US dollars and 11 percent in constant currency.
Asia revenues increased 16.9 percent in US dollars and 15.5 percent in constant currency, while retail comp sales including e-commerce increased 4 percent in US dollars and 2 percent in constant currency.
Americas wholesale revenues increased 5.7 percent in US dollars and 7.7 percent in constant currency. Licensing revenues decreased 9.3 percent in US dollars and constant currency.
GAAP operating loss improves 11.9 percent
The company said, GAAP operating loss for the first quarter improved 11.9 percent to 25.5 million dollars compared to 29 million dollars in the prior-year quarter. GAAP operating margin improved 90 basis points to negative 5.6 percent, compared to negative 6.5 percent in the prior-year quarter. Adjusted operating loss was relatively flat at 22.8 million dollars and adjusted operating margin was negative 5 percent, an improvement of 10 basis points compared to the same prior-year quarter.
The company's Board of Directors has approved a quarterly cash dividend of 0.225 dollar per share on the company's common stock payable on June 23, 2017 to shareholders of record at the close of business on June 7, 2017.
Guess projects 2 to 4 percent rise in Q2 sales
For the second quarter Guess expects consolidated revenues to improve between 2 to 4 percent or 3.5 percent to 5 percent on constant currency and between 3.5 percent to 5 percent or 4 percent to 5.5 percent on a constant currency basis for the full fiscal year.
GAAP EPS for the quarter is projected to be in the range of 0.08 dollar to 0.11 dollar and 0.32 dollar to 0.42 dollar for the full year. Adjusted EPS is expected to range between 0.08 dollar and 0.11 dollar for the second quarter and 0.34 to 0.44 dollar for the full year.