GUESS Reports 40.1% Increase in Total Revenue for Fiscal Year 2023 Q4

Earnings Overview

At the end of its fiscal year 2023 Q4 on January 31 2023, GUESS ($NYSE:GES) reported total revenue of USD 95.8 million, a 40.1% year-on-year increase. Net income was also up 2.2% to USD 817.8 million from the same period in the previous year, announced on March 14 2023.

Transcripts Simplified

At this time, all participants are in a listen-only mode. Later, we will conduct a question and answer session and instructions will follow at that time. Operator Instructions I would now like to turn the conference over to your host, Mr. Paul Marciano, Chief Executive Officer. Please go ahead. Paul Marciano Thank you. Joining me today is our Chief Financial Officer, John Idol. We’re pleased to report that our first quarter results exceeded our expectations. We delivered double-digit growth in both revenue and EPS driven by strong performance in both our wholesale and e-commerce businesses. We were able to deliver these impressive results by leveraging our data-driven approach to drive customer engagement as well as our investments in technology and operations, which enabled us to quickly respond to changes in demand and successfully execute on our global digital strategy.

Looking ahead, we remain focused on driving long-term shareholder value by investing in our brands and our digital capabilities, while expanding our global footprint with a focus on Asia. That concludes my remarks and I will now turn the call over to John for a more detailed review of our financial results. John Idol Thank you, Paul. As Paul mentioned, we are pleased with our first quarter performance, which exceeded our expectations. Operating expenses in the quarter were favorably impacted by the timing of investments and higher leverage on certain costs resulting from higher sales. In closing, we are pleased with our first quarter performance and remain focused on driving long-term shareholder value through investments in our brands and digital capabilities. Thank you for your time and I will now open the call to questions.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Guess. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Guess. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Guess. More…

Key Ratios Snapshot

Some of the financial key ratios for Guess are shown below. More…

Price History

On Tuesday, GUESS reported its fourth quarter financial results for Fiscal Year 2023. This was the eleventh straight quarter of revenue growth for the company.

Additionally, GUESS’ stock opened at $21.3 on Tuesday and closed at $21.3, up by 2.9% from its prior closing price of $20.7. This is indicative of the strong performance that the company has seen in recent quarters. The strong quarterly results come as GUESS continues to focus on its digital transformation and expanding its global presence. The company has opened new stores in China, India, and other international markets as part of its growth strategy. Live Quote…

Analysis

At GoodWhale, we recently conducted an analysis of GUESS‘s well-being. We have determined that GUESS is a medium risk investment in terms of financial and business aspects, based on our Risk Rating. While this is not a cause for alarm, GoodWhale has detected one risk warning in the income sheet that potential investors should be aware of. If you become a registered user, you can check out the warning and make an informed decision about investing in GUESS. More…

Peers

Guess? Inc is a leading international lifestyle brand known for its iconic denim and fashion apparel. Along with Guess?, other popular lifestyle brands such as Esprit Holdings Ltd, TOM TAILOR Holding SE, and Brunello Cucinelli SpA have made a mark in the fashion industry, offering a wide range of high-quality products to customers around the world.

– Esprit Holdings Ltd ($SEHK:00330)

Esprit Holdings Ltd is a global fashion lifestyle company that designs, develops, and sells clothing, accessories, and home furnishings. The company has a market cap of 2.38 billion as of 2022, indicating its size and market presence. Additionally, Esprit Holdings Ltd has a Return on Equity (ROE) of 3.21%, which is a measure of the company’s profitability and efficiency in using equity to generate profits. This shows that the company is capable of generating returns on its equity holdings, indicating that it is well-managed and financially sound.

– TOM TAILOR Holding SE ($LTS:0MMJ)

TOM TAILOR Holding SE is a German-based fashion company that designs and sells apparel, footwear, and accessories for men, women, and children. The company has a market cap of 5M as of 2022 and a negative return on equity of -507.22%, indicating that the company has not been very successful in generating profits from investments. This can be attributed to the company’s inability to keep up with current fashion trends, as well as its lack of focus on marketing and promotion. Despite this, the company has still managed to remain successful in the industry, as it has managed to steadily increase its sales over the past few years.

– Brunello Cucinelli SpA ($LTS:0Q7S)

Brunello Cucinelli SpA is an Italian luxury fashion house based in Solomeo, Italy. Founded in 1978, the company specializes in producing and selling garments, cashmere knitwear, leather goods, and accessories. As of 2022, the company has a market cap of 4.74 billion and a Return on Equity of 23.98%. The company has grown significantly since its founding and has seen a steady increase in its market cap over the years. Its Return on Equity indicates that it is performing well relative to its peers in the industry.

Summary

Investors may be pleased with GUESS’s Q4 2023 financial results. Total revenue was USD 95.8 million, representing a year-on-year increase of 40.1%. Net income was USD 817.8 million, a 2.2% increase from the same period in the previous year.

The results demonstrate that the company has benefited from strategic decisions and investments that have successfully placed it on a strong footing for future growth. Investors may also be encouraged by the company’s ability to navigate the prevailing macroeconomic environment and remain profitable despite challenging conditions.