However, the company recorded adjusted net earnings of $161.1 million in FY23, which is a 17.3 per cent decrease from $194.7 million in FY22. Adjusted diluted EPS also decreased by 6.2 per cent to $2.74 in FY23, from $2.92 in FY22, Guess, Inc said in a press release.
The company’s Americas retail revenues remained consistent in US dollars but increased by 1 per cent in constant currency. Americas wholesale revenues increased by 2 per cent in US dollars and 3 per cent in constant currency.
Guess reported a 4 per cent increase in net revenue to $2.69 billion in FY23. However, GAAP net earnings decreased by 12.7 per cent to $149.6 million. For Q4 FY23, net revenue increased 2 per cent to $817.8 million, while GAAP earnings from operations fell 17 per cent to $103.6 million. Guess expects consolidated revenue to increase by 1-3 per cent in FY24.
Europe revenues increased by 6 per cent in US dollars and 21 per cent in constant currency. Asia revenues increased by 1 per cent in US dollars and 12 per cent in constant currency.
Licensing revenues increased by 7 per cent in both US dollars and constant currency.
For FY23, Guess, Inc.’s GAAP earnings from operations decreased by 19 per cent to $248.2 million, from $305 million in FY22. GAAP operating margin in FY23 decreased by 2.6 per cent to 9.2 per cent, from 11.8 per cent in FY22. The negative impact of currency on operating margin for FY23 was approximately 140 basis points.
Guess’ adjusted earnings from operations also decreased by 15 per cent to $262.9 million in FY23, from $310.6 million in FY22. Adjusted operating margin decreased by 2.2 per cent to 9.8 per cent, from 12 per cent in FY22, primarily driven by higher costs, the unfavourable currency impact, higher markdowns, and lower rent relief, partially offset by overall leveraging of expenses.
For the fourth quarter (Q4) of FY23, Guess, Inc reported GAAP net earnings of $95.8 million, a 40.1 per cent increase from the same prior-year quarter. The company also reported an increase in GAAP diluted net earnings per share (EPS) by 36.5 per cent to $1.42 compared to Q4 FY22. Adjusted net earnings were $98.2 million, a 30.6 per cent increase from Q4 FY22. Additionally, the company’s adjusted diluted EPS increased by 52.6 per cent to $1.74 from Q4 FY22.
Total net revenue for Q4 FY23 increased 2 per cent to $817.8 million from $799.9 million in the same prior-year quarter. However, the Americas retail revenues decreased by 1 per cent in both US dollars and constant currency. The Americas wholesale revenues also decreased by 27 per cent in both US dollars and constant currency.
On the other hand, Europe revenues in Q4 FY23 increased by 10 per cent year-on-year (YoY) in US dollars and 20 per cent YoY in constant currency. Asia revenues decreased by 8 per cent YoY in US dollars and increased by 1 per cent YoY in constant currency. Licensing revenues also decreased by 8 per cent YoY in both US dollars and constant currency.
GAAP earnings from operations for Q4 FY23 decreased by 17 per cent to $103.6 million, from $125.4 million in the same prior-year quarter. The GAAP operating margin for Q4 FY23 decreased by 3 per cent to 12.7 per cent from 15.7 per cent for the same prior-year quarter. Adjusted earnings from operations also decreased by 14 per cent to $107.5 million from $125.7 million in Q4 FY22. The adjusted operating margin decreased by 2.6 per cent to 13.1 per cent from 15.7 per cent in Q4 FY22.
For FY24, Guess expects consolidated revenue to increase by 1-3 per cent, while the GAAP operating margin is projected to be in the range of 8-9 per cent.
For Q1 FY24, the company expects consolidated revenue to decrease by 7-6 per cent, while the GAAP operating margin is estimated to be in the range of minus 1.2 per cent to minus 0.5 per cent, the release added.
“During the last three years, we have transformed our company. This is an ongoing project centred on the elevation of our brands. We continue to work on making our product better every day, investing constantly to increase the quality of our products across all categories with a strong focus on sustainability. Our customers continue to respond well to our collections, and it is clear that our marketing efforts are paying off. Our brand momentum is strong, and we are well positioned in the marketplace to continue to gain market share,” said Paul Marciano, co-founder and chief creative officer.
Fibre2Fashion News Desk (DP)
