Guess?,
Inc. Reports Second Quarter Results
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Q2
Fiscal 2016 EPS of $0.21, Compared to EPS of $0.26 in Q2 Fiscal 2015
Q2 Fiscal 2016 Revenues Decreased 10% to $546 Million; Decreased 1%
in Constant Currency
Provides Q3 Fiscal 2016 EPS Guidance in the Range of $0.08 to $0.12
Updates Full Year EPS Guidance to a Range of $0.89 to $1.02
LOS ANGELES
,
Aug. 26, 2015
/PRNewswire/ --
Guess?, Inc.
(NYSE: GES) today reported financial results for its second quarter
ended August 1, 2015.
Second Quarter Fiscal 2016
Highlights
- Americas Retail revenues
decreased 5%; retail comp sales including e-commerce decreased 3%
in U.S. dollars and was flat in constant currency
-
Europe
revenues decreased 15% in U.S. dollars and increased 4% in
constant currency
-
Asia
revenues decreased 12% in U.S. dollars and 6% in constant currency
- Americas Wholesale revenues
decreased 15% in U.S. dollars and 9% in constant currency
- Operating earnings
decreased 12%
- Earnings per share
decreased 19%, including the negative impact of currency of 38%
Second Quarter Fiscal 2016
Results
For the second quarter of fiscal 2016,
the Company recorded net earnings of
$18.3 million
, a 16.7% decrease compared to
$22.0 million
for the second quarter of fiscal 2015. Diluted earnings per share
decreased 19.2% to
$0.21
, compared to
$0.26
for the prior-year quarter. The negative impact of currency on
earnings per share in the second quarter of fiscal 2016 was
approximately
10 cents
.
Paul Marciano
, Chairman of the Board and Chief Creative Officer, commented, "I
am pleased to report that second quarter results were better than our
expectations. In our Americas Retail business, comp sales ended flat
for the quarter in constant currency, mainly driven by continued
improvement in the performance of the womens' category. Our e-commerce
business continued to experience solid top-line growth of 20%. So far
in the third quarter, comp sales in the
Americas
are roughly flat in constant currency. But I am even more pleased by
the hiring of
Victor Herrero
as our new Chief Executive Officer. Victor brings with him amazing
experience and a deep understanding of retail. I am confident that he
has all the required qualities to help write the next chapter for
Guess."
Victor Herrero
, Chief Executive Officer, stated, "I am very honored to be part
of the Guess family and am convinced that the Guess brand has
tremendous opportunities. Already I have identified five initiatives
that I'm sure will create economic value. In the first phase, we will
focus on elevating the quality of our sales organization by leveraging
our field and store structure. We will also unlock the potential of
the Guess Brand in
Asia
by working to build a major business in this region. Finally we will
create a culture of purpose and accountability throughout the entire
company by implementing a central organizational structure focused on
sales and profitability. In the second phase, we will revitalize our
wholesale business and improve our overall cost structure. My goal is
to drive long-term value for our shareholders and I am confident that
these initiatives are the right steps towards achieving that
goal."
Total net revenue for the second
quarter of fiscal 2016 decreased 10.2% to
$546.3 million
, from
$608.6 million
in the prior-year quarter. In constant currency, total net revenue
decreased 0.6%. Refer to the accompanying tables for a summary of the
impact of foreign currency exchange rate fluctuations on the Company's
net revenue. Beginning this quarter, the Company has changed the names
of its "North American Retail" and "North American
Wholesale" segments to "Americas Retail" and
"Americas Wholesale" to better reflect that these segments
are inclusive of its operations in
North America
as well as Central and
South America
. There have been no changes to the underlying reporting in either
segment.
- The Company's retail stores
and e-commerce sites in the
Americas
generated revenue of
$232.5 million
in the second quarter of fiscal 2016, a 4.7% decrease from
$244.0 million
in the same period a year ago. Comparable store sales including
the results of our e-commerce sites in the U.S. and
Canada
for the second quarter of fiscal 2016 decreased 2.8% in U.S.
dollars and was relatively flat in constant currency compared to
the same period a year ago.
- Net revenue from the Company's
Europe
segment decreased 15.3% to
$199.4 million
in the second quarter of fiscal 2016, from
$235.3 million
in the prior-year period. In constant currency, net revenue
increased 3.7%.
- Net revenue from the Company's
Asia
segment decreased 11.7% to
$56.7 million
in the second quarter of fiscal 2016, from
$64.3 million
in the prior-year period. In constant currency, net revenue
decreased 6.0%.
- Net revenue from the Company's
Americas Wholesale segment decreased 15.4% to
$32.4 million
in the second quarter of fiscal 2016, from
$38.3 million
in the prior-year period. In constant currency, net revenue
decreased 9.0%.
- Licensing segment net revenue
decreased 5.5% to
$25.3 million
in the second quarter of fiscal 2016, from
$26.8 million
in the prior-year period.
Operating earnings for the second
quarter of fiscal 2016 decreased 12.2% to
$26.2 million
(including a
$4.4 million
unfavorable currency translation impact), from
$29.9 million
in the prior-year period. Operating margin in the second quarter was
down 10 basis points at 4.8%, compared to 4.9% in the prior-year
quarter. Operating margin was negatively impacted by currency exchange
rate fluctuations and charges related to legal matters. These
decreases were mostly offset by overall product margin improvements
relating to higher initial mark-ups in
Europe
and Americas Retail and less markdowns in Americas Retail.
- Operating margin for the
Company's Americas Retail segment increased 420 basis points to
2.3% in the second quarter of fiscal 2016, compared to negative
1.9% in the prior-year period. The increase in operating margin
was driven by higher gross margins due primarily to less markdowns
and higher initial mark-ups, partially offset by the unfavorable
impact from currency exchange rate fluctuations on product costs,
and a lower SG&A rate driven by lower store impairment
charges.
- Operating margin for the
Company's
Europe
segment decreased 130 basis points to 9.1% in the second quarter
of fiscal 2016, compared to 10.4% in the prior-year period. The
decrease in operating margin was driven primarily by lower gross
margins due to the unfavorable impact from currency exchange rate
fluctuations on product costs, partially offset by higher initial
mark-ups.
- Operating margin for the
Company's
Asia
segment decreased 190 basis points to 1.6% in the second quarter
of fiscal 2016, compared to 3.5% in the prior-year period. The
decrease in operating margin was driven by lower gross margins in
South Korea
and a higher SG&A rate due primarily to overall deleveraging.
- Operating margin for the
Company's Americas Wholesale segment increased 160 basis points to
15.1% in the second quarter of fiscal 2016, compared to 13.5% in
the prior-year period. The increase in operating margin was due to
higher product margins, partially offset by an overall
deleveraging of SG&A expenses.
- Operating margin for the
Company's Licensing segment decreased 450 basis points to 88.5% in
the second quarter of fiscal 2016, compared to 93.0% in the
prior-year period.
Other net income, which primarily
includes net unrealized and realized mark-to-market gains on foreign
currency contracts, was
$3.7 million
for the second quarter of fiscal 2016, compared to
$4.8 million
in the prior-year quarter.
The Company's effective tax rate
increased to 37.2% for the second quarter of fiscal 2016, compared to
34.8% in the prior-year quarter.
Six-Month Period Results
Net earnings for the six months ended
August 1, 2015
were
$21.6 million
, an increase of 9.0% compared to
$19.9 million
for the six months ended
August 2, 2014
. Diluted earnings per share increased 8.7% to
$0.25
, compared to
$0.23
for the prior-year period. The negative impact of currency on earnings
per share for the six months ended
August 1, 2015
was approximately
11 cents
.
Total net revenue for the first six
months of fiscal 2016 decreased 9.4% to
$1.03 billion
, from
$1.13 billion
in the prior-year period. In constant currency, total net revenue
decreased 0.3%. Refer to the accompanying tables for a summary of the
impact of foreign currency exchange rate fluctuations on the Company's
net revenue.
- The Company's retail stores
and e-commerce sites in the
Americas
generated revenue of
$446.7 million
in the first six months of fiscal 2016, a 5.4% decrease from
$472.3 million
in the same period a year ago. Comparable store sales including
the results of our e-commerce sites in the U.S. and
Canada
for the six months ended
August 1, 2015
decreased 4.3% in U.S. dollars and 1.8% in constant currency
compared to the same period a year ago.
- Net revenue from the Company's
Europe
segment decreased 14.6% to
$336.8 million
in the first six months of fiscal 2016, from
$394.4 million
in the prior-year period. In constant currency, net revenue
increased 5.3%.
- Net revenue from the Company's
Asia
segment decreased 10.1% to
$120.8 million
in the first six months of fiscal 2016, from
$134.4 million
in the prior-year period. In constant currency, net revenue
decreased 6.0%.
- Net revenue from the Company's
Americas Wholesale segment decreased 10.2% to
$69.6 million
in the first six months of fiscal 2016, from
$77.6 million
in the prior-year period. In constant currency, net revenue
decreased 3.8%.
- Licensing segment net revenue
decreased 2.3% to
$51.2 million
in the first six months of fiscal 2016, from
$52.4 million
in the prior-year period.
Operating earnings for the first six
months of fiscal 2016 increased 9.6% to
$30.6 million
(including a
$3.2 million
unfavorable currency translation impact), from
$27.9 million
in the prior-year period. Operating margin in the first six months of
fiscal 2016 increased 50 basis points to 3.0%, compared to 2.5% in the
prior-year period. The increase in operating margin was driven by
overall product margin improvements relating to higher initial
mark-ups in
Europe
and Americas Retail and less markdowns in Americas Retail. These
increases were partially offset by the unfavorable impact from
currency exchange rate fluctuations, the negative impact on the
Company's fixed cost structure from negative same store sales in
Americas Retail and charges related to legal matters.
- Operating margin for the
Company's Americas Retail segment increased 240 basis points to
negative 0.4% in the first six months of fiscal 2016, compared to
negative 2.8% in the prior-year period. The increase in operating
margin was driven primarily by higher gross margins due primarily
to less markdowns and higher initial mark-ups, partially offset by
the negative impact on the fixed cost structure resulting from
negative comparable store sales and the unfavorable impact from
currency exchange rate fluctuations on product costs.
- Operating margin for the
Company's
Europe
segment decreased 20 basis points to 4.3% in the first six months
of fiscal 2016, compared to 4.5% in the prior-year period. The
decrease in operating margin was driven by lower gross margins due
to the unfavorable impact from currency exchange rate fluctuations
on product costs, partially offset by higher initial mark-ups.
- Operating margin for the
Company's
Asia
segment increased 40 basis points to 4.6% in the first six months
of fiscal 2016, compared to 4.2% in the prior-year period. The
increase in operating margin was driven by a lower SG&A rate
due primarily to an overall leveraging of expenses as we phase out
of our G by GUESS concept in
South Korea
, partially offset by lower gross margins in
South Korea
.
- Operating margin for the
Company's Americas Wholesale segment was flat at 16.7% in the
first six months of fiscal 2016 compared to the prior-year period.
- Operating margin for the
Company's Licensing segment decreased 210 basis points to 88.8% in
the first six months of fiscal 2016, compared to 90.9% in the
prior-year period.
Other net income, which primarily
includes net unrealized and realized mark-to-market gains on foreign
currency contracts and net unrealized and realized gains on
non-operating assets, was
$6.3 million
for the first six months of fiscal 2016, compared to
$3.6 million
in the prior-year period.
The Company's effective tax rate
increased to 38.0% for the first six months of fiscal 2016, compared
to 35.1% in the prior-year period.
Outlook
The following guidance assumes that
foreign currency exchange rates remain at prevailing rates:
The Company's expectations for the
third quarter of fiscal 2016 ending October 31, 2015, are as
follows:
- Consolidated net revenues are
expected to decline between 4.5% and 3.0% in constant currency.
Currency headwinds are expected to negatively impact consolidated
revenue growth by approximately 8.0%, for a net decline between
12.5% and 11.0%.
- Operating margin is expected
to be between 2.0% and 3.0% and includes 150 basis points of
currency headwind.
- Diluted earnings per share are
expected to be in the range of
$0.08 to $0.12
. The estimated impact on earnings per share of the currency
headwinds is approximately
$0.12
.
The Company updated its outlook for the
fiscal year ending January 30, 2016, which is now as follows:
- Consolidated net revenues are
expected to decline between 1.5% and 0.5% in constant currency.
Currency headwinds are expected to negatively impact consolidated
revenue growth by approximately 7.5%, for a net decline between
9.0% and 8.0%.
- Operating margin is expected
to be between 5.0% and 6.0% and includes 130 basis points of
currency headwind.
- Diluted earnings per share are
expected to be in the range of
$0.89 to $1.02
. The estimated impact on earnings per share of the currency
headwinds is approximately
$0.40
.
On a segment basis, the Company expects
the following ranges for percentage changes for comparable store sales
("comps") and net revenue in constant currency and U.S.
dollars compared to the same prior-year period:
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Outlook
by Segment1
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Third
Quarter of Fiscal 2016
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Fiscal
Year 2016
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Constant
Currency2
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U.S.
Dollars
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Constant
Currency2
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U.S.
Dollars
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Americas
Retail3:
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Comps
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flat
to up LSD
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down
LSD
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flat
to up LSD
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down
LSD
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Net
Revenue
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down
LSD to up LSD
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down
LSD
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down
LSD to flat
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down
LSD
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Europe:
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Comps
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up
MSD
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__
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up
LSD
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__
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Net
Revenue
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down
MSD
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down
low-twenties
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up
LSD
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down
low-teens
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Asia:
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Net
Revenue
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down
MSD to LSD
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down
low-teens to LDD
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down
HSD
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down
low-teens
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Americas
Wholesale3:
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Net
Revenue
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down
HSD
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down
high-teens
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down
MSD
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down
low-teens
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Licensing:
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Net
Revenue
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__
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down
MSD
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__
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down
LSD
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Notes
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1
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As
used in the table above, "LSD" is used to refer to
the range of Low-Single-Digits, "MSD" is used to
refer to the range of Mid-Single-Digits, "HSD" is
used to refer to the range of High-Single-Digits, and "LDD"
is used to refer to the range of Low-Double-Digits.
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2
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Eliminates
the impact of expected foreign currency translation to give
investors a better understanding of the underlying trends
within the business.
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3
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Beginning
this quarter, the Company has changed the names of its
"North American Retail" and "North American
Wholesale" segments to "Americas Retail" and
"Americas Wholesale" to better reflect that these
segments are inclusive of its operations in North America as
well as Central and South America. There have been no
changes to the underlying reporting in either segment.
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Dividends
The Company also announced today that
its Board of Directors has approved a quarterly cash dividend of
$0.225
per share on the Company's common stock. The dividend will be payable
on September 25, 2015 to shareholders of record at the close of
business on September 9, 2015.
Presentation of Non-GAAP
Information
The financial information presented in
this release includes non-GAAP financial measures such as constant
currency financial information and free cash flow measures. The non-GAAP
measures are provided in addition to, and not as alternatives for, the
Company's reported GAAP results.
This release includes certain constant
currency financial information. Foreign currency exchange rate
fluctuations affect the amount reported from translating the Company's
foreign revenue, expenses and balance sheet amounts into U.S. dollars.
These rate fluctuations can have a significant effect on reported
operating results under GAAP. The Company provides constant currency
information to enhance the visibility of underlying business trends,
excluding the effects of changes in foreign currency translation
rates. To calculate net revenue, comparable store sales and earnings
(loss) from operations on a constant currency basis, operating or
forecasted results for the current-year period are translated into
U.S. dollars at the average exchange rates in effect during the
comparable period of the prior year. The constant currency
calculations do not adjust for the impact of revaluing specific
transactions denominated in a currency that is different to the
functional currency of that entity when exchange rates fluctuate.
However, in calculating the estimated impact of currency on our
earnings per share guidance for the third quarter and full year of
fiscal 2016, the Company estimates gross margin (including the impact
of merchandise-related hedges) and expenses using the appropriate
prior-year rates, translates the estimated foreign earnings at the
comparable prior-year rates, and excludes the year-over-year earnings
impact of gains or losses arising from balance sheet remeasurement and
foreign currency contracts not designated as merchandise hedges. The
constant currency information presented may not be comparable to
similarly titled measures reported by other companies.
The Company also includes information
regarding its free cash flows in this release. The Company calculates
free cash flows as cash flows from operating activities less purchases
of property and equipment. Free cash flows is not intended to be an
alternative to cash flows from operating activities as a measure of
liquidity, but rather provides additional visibility to investors
regarding how much cash is generated for discretionary and
non-discretionary items after deducting purchases of property and
equipment. Free cash flow information presented may not be comparable
to similarly titled measures reported by other companies. A
reconciliation of reported GAAP cash flows from operating activities
to the comparable non-GAAP free cash flow measure is provided in the
accompanying tables.
Investor Conference Call
The Company will hold a conference
call at
4:30 pm (ET)
on August 26, 2015 to discuss the news announced in this press
release. A live webcast of the conference call will be accessible at www.guess.com via
the "Investor Relations" link. The webcast will be archived
on the website for 30 days.
About Guess?
Guess?, Inc.
designs, markets, distributes and licenses a lifestyle collection of
contemporary apparel, denim, handbags, watches, footwear and other
related consumer products. Guess? products are distributed through
branded Guess? stores as well as better department and specialty
stores around the world. As of August 1, 2015, the Company
directly operated 815 retail stores in the
Americas
,
Europe
and
Asia
. The Company's licensees and distributors operated 808 additional
retail stores outside of
the United States
and
Canada
. As of August 1, 2015, the Company and its licensees and
distributors operated in more than 90 countries worldwide. For more
information about the Company, please visit www.guess.com.
Forward-Looking Statements
Except for historical information
contained herein, certain matters discussed in this press release or
the related conference call and webcast, including statements
concerning the Company's expectations, future prospects and strategic
initiatives (including those identified by the Company's new Chief
Executive Officer,
Victor Herrero
), as well as guidance for the third quarter and full year of fiscal
2016, are forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements, which are frequently indicated by
terms such as "expect," "will," "goal,"
"strategy," "believe," "continue,"
"outlook," "plan" and similar terms, are only
expectations, and involve known and unknown risks and uncertainties,
which may cause actual results in future periods to differ materially
from what is currently anticipated. Factors which may cause actual
results in future periods to differ materially from current
expectations include, among others: our ability to maintain our brand
image and reputation; domestic and international economic conditions,
including economic and other events that could negatively impact
consumer confidence and discretionary consumer spending; changes in
the competitive marketplace and in our commercial relationships; our
ability to anticipate and respond to consumer preferences and trends;
our ability to manage our inventory commensurate with customer demand;
risks related to the timing and costs of delivering merchandise to our
stores and our wholesale customers; our ability to effectively operate
our various retail concepts, including securing, renewing, modifying
or terminating leases for store locations; our ability to successfully
implement our growth strategies and other strategic initiatives; our
ability to successfully implement plans for cost savings; unexpected
obligations arising from new or existing litigation, tax and other
regulatory proceedings; accounting adjustments identified from
subsequent events arising after issuance of this release; risks
associated with our foreign operations, such as violations of laws
prohibiting improper payments and the burdens of complying with a
variety of foreign laws and regulations; risks associated with the
acts or omissions of our third party vendors, including a failure to
comply with our vendor code of conduct or other policies; risks
associated with cyber attacks and other cyber security risks; and
changes in economic, political, social and other conditions affecting
our foreign operations and sourcing, including the impact of currency
fluctuations, global tax rates and economic and market conditions in
Eastern Europe
,
Southern Europe
and
Asia
(particularly
China
and
Korea
). In addition to these factors, the economic, technological,
managerial, and other risks identified in the Company's most recent
annual report on Form 10-K and other filings with the
Securities and Exchange Commission
, including but not limited to the risk factors discussed therein,
could cause actual results to differ materially from current
expectations. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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Guess?,
Inc. and Subsidiaries
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Condensed
Consolidated Statements of Income
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(amounts
in thousands, except per share data)
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Three
Months Ended
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Six
Months Ended
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August 1,
2015
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August
2, 2014
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August 1,
2015
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August
2, 2014
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$
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%
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$
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%
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$
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%
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$
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%
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Product
sales
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$
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520,937
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95.4%
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$
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581,779
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95.6%
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$
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973,896
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95.0%
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$
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1,078,707
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95.4%
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Net
royalties
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25,327
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4.6%
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26,792
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4.4%
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51,192
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5.0%
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52,405
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4.6%
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Net
revenue
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546,264
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100.0%
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608,571
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100.0%
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1,025,088
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100.0%
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1,131,112
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100.0%
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Cost
of product sales
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348,147
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63.7%
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391,794
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64.4%
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661,486
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64.5%
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738,104
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65.3%
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Gross
profit
|
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198,117
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36.3%
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216,777
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35.6%
|
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363,602
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35.5%
|
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393,008
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34.7%
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Selling,
general and administrative expenses
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171,916
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31.5%
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186,919
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30.7%
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|
333,048
|
|
32.5%
|
|
365,127
|
|
32.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
from operations
|
|
26,201
|
|
4.8%
|
|
29,858
|
|
4.9%
|
|
30,554
|
|
3.0%
|
|
27,881
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(729)
|
|
(0.1%)
|
|
(772)
|
|
(0.1%)
|
|
(1,164)
|
|
(0.1%)
|
|
(1,297)
|
|
(0.1%)
|
|
|
Interest
income
|
|
239
|
|
0.1%
|
|
320
|
|
0.1%
|
|
511
|
|
0.0%
|
|
725
|
|
0.1%
|
|
|
Other,
net
|
|
3,708
|
|
0.6%
|
|
4,766
|
|
0.7%
|
|
6,334
|
|
0.6%
|
|
3,647
|
|
0.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
before income tax expense
|
|
29,419
|
|
5.4%
|
|
34,172
|
|
5.6%
|
|
36,235
|
|
3.5%
|
|
30,956
|
|
2.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense
|
|
10,940
|
|
2.0%
|
|
11,900
|
|
1.9%
|
|
13,769
|
|
1.3%
|
|
10,871
|
|
0.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
18,479
|
|
3.4%
|
|
22,272
|
|
3.7%
|
|
22,466
|
|
2.2%
|
|
20,085
|
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings attributable to noncontrolling interests
|
|
190
|
|
0.1%
|
|
318
|
|
0.1%
|
|
836
|
|
0.1%
|
|
232
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings attributable to Guess?, Inc.
|
|
$
|
18,289
|
|
3.3%
|
|
$
|
21,954
|
|
3.6%
|
|
$
|
21,630
|
|
2.1%
|
|
$
|
19,853
|
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings per common share attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.21
|
|
|
|
$
|
0.26
|
|
|
|
$
|
0.25
|
|
|
|
$
|
0.23
|
|
|
|
|
Diluted
|
|
$
|
0.21
|
|
|
|
$
|
0.26
|
|
|
|
$
|
0.25
|
|
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
85,004
|
|
|
|
84,573
|
|
|
|
84,985
|
|
|
|
84,536
|
|
|
|
|
Diluted
|
|
85,290
|
|
|
|
84,799
|
|
|
|
85,132
|
|
|
|
84,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?,
Inc. and Subsidiaries
|
Consolidated
Segment Data
|
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
Six
Months Ended
|
|
|
|
|
|
|
August
1,
|
|
August
2,
|
|
%
|
|
August
1,
|
|
August
2,
|
|
%
|
|
|
|
|
|
|
2015
|
|
2014
|
|
change
|
|
2015
|
|
2014
|
|
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
$
|
232,456
|
|
|
$
|
244,000
|
|
|
(5%)
|
|
$
|
446,705
|
|
|
$
|
472,344
|
|
|
(5%)
|
|
Europe
|
199,375
|
|
|
235,260
|
|
|
(15%)
|
|
336,772
|
|
|
394,418
|
|
|
(15%)
|
|
Asia
|
56,745
|
|
|
64,267
|
|
|
(12%)
|
|
120,780
|
|
|
134,385
|
|
|
(10%)
|
|
Americas
Wholesale1
|
32,361
|
|
|
38,252
|
|
|
(15%)
|
|
69,639
|
|
|
77,560
|
|
|
(10%)
|
|
Licensing
|
25,327
|
|
|
26,792
|
|
|
(5%)
|
|
51,192
|
|
|
52,405
|
|
|
(2%)
|
|
|
|
|
|
|
$
|
546,264
|
|
|
$
|
608,571
|
|
|
(10%)
|
|
$
|
1,025,088
|
|
|
$
|
1,131,112
|
|
|
(9%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) from operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
$
|
5,244
|
|
|
$
|
(4,662)
|
|
|
212%
|
|
$
|
(1,965)
|
|
|
$
|
(13,061)
|
|
|
85%
|
|
Europe
|
18,186
|
|
|
24,513
|
|
|
(26%)
|
|
14,518
|
|
|
17,881
|
|
|
(19%)
|
|
Asia
|
887
|
|
|
2,264
|
|
|
(61%)
|
|
5,500
|
|
|
5,617
|
|
|
(2%)
|
|
Americas
Wholesale1
|
4,872
|
|
|
5,167
|
|
|
(6%)
|
|
11,619
|
|
|
12,920
|
|
|
(10%)
|
|
Licensing
|
22,415
|
|
|
24,909
|
|
|
(10%)
|
|
45,440
|
|
|
47,630
|
|
|
(5%)
|
|
Corporate
Overhead
|
(25,403)
|
|
|
(22,333)
|
|
|
14%
|
|
(44,558)
|
|
|
(43,106)
|
|
|
3%
|
|
|
|
|
|
|
$
|
26,201
|
|
|
$
|
29,858
|
|
|
(12%)
|
|
$
|
30,554
|
|
|
$
|
27,881
|
|
|
10%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
2.3%
|
|
|
(1.9%)
|
|
|
|
|
(0.4%)
|
|
|
(2.8%)
|
|
|
|
|
Europe
|
9.1%
|
|
|
10.4%
|
|
|
|
|
4.3%
|
|
|
4.5%
|
|
|
|
|
Asia
|
1.6%
|
|
|
3.5%
|
|
|
|
|
4.6%
|
|
|
4.2%
|
|
|
|
|
Americas
Wholesale1
|
15.1%
|
|
|
13.5%
|
|
|
|
|
16.7%
|
|
|
16.7%
|
|
|
|
|
Licensing
|
88.5%
|
|
|
93.0%
|
|
|
|
|
88.8%
|
|
|
90.9%
|
|
|
|
|
Total
Company
|
4.8%
|
|
|
4.9%
|
|
|
|
|
3.0%
|
|
|
2.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Beginning
this quarter, the Company has changed the names of its
"North American Retail" and "North American
Wholesale" segments to "Americas Retail" and
"Americas Wholesale" to better reflect that these
segments are inclusive of its operations in North America as
well as Central and South America. There have been no
changes to the underlying reporting in either segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?,
Inc. and Subsidiaries
|
Constant
Currency Financial Measures
|
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
|
|
|
|
|
|
|
|
August 1,
2015
|
|
August 2,
2014
|
|
%
change
|
|
As
Reported
|
|
Foreign
Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
$
|
232,456
|
|
|
$
|
7,808
|
|
|
$
|
240,264
|
|
|
$
|
244,000
|
|
|
(5%)
|
|
(2%)
|
|
Europe
|
199,375
|
|
|
44,643
|
|
|
244,018
|
|
|
235,260
|
|
|
(15%)
|
|
4%
|
|
Asia
|
56,745
|
|
|
3,677
|
|
|
60,422
|
|
|
64,267
|
|
|
(12%)
|
|
(6%)
|
|
Americas
Wholesale1
|
32,361
|
|
|
2,439
|
|
|
34,800
|
|
|
38,252
|
|
|
(15%)
|
|
(9%)
|
|
Licensing
|
25,327
|
|
|
—
|
|
|
25,327
|
|
|
26,792
|
|
|
(5%)
|
|
(5%)
|
|
|
|
|
|
|
$
|
546,264
|
|
|
$
|
58,567
|
|
|
$
|
604,831
|
|
|
$
|
608,571
|
|
|
(10%)
|
|
(1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
|
|
|
|
|
|
|
August 1,
2015
|
|
August 2,
2014
|
|
%
change
|
|
As
Reported
|
|
Foreign
Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail1
|
$
|
446,705
|
|
|
$
|
13,169
|
|
|
$
|
459,874
|
|
|
$
|
472,344
|
|
|
(5%)
|
|
(3%)
|
|
Europe
|
336,772
|
|
|
78,392
|
|
|
415,164
|
|
|
394,418
|
|
|
(15%)
|
|
5%
|
|
Asia
|
120,780
|
|
|
5,562
|
|
|
126,342
|
|
|
134,385
|
|
|
(10%)
|
|
(6%)
|
|
Americas
Wholesale1
|
69,639
|
|
|
5,012
|
|
|
74,651
|
|
|
77,560
|
|
|
(10%)
|
|
(4%)
|
|
Licensing
|
51,192
|
|
|
—
|
|
|
51,192
|
|
|
52,405
|
|
|
(2%)
|
|
(2%)
|
|
|
|
|
|
|
$
|
1,025,088
|
|
|
$
|
102,135
|
|
|
$
|
1,127,223
|
|
|
$
|
1,131,112
|
|
|
(9%)
|
|
(0%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
|
Beginning
this quarter, the Company has changed the names of its
"North American Retail" and "North American
Wholesale" segments to "Americas Retail" and
"Americas Wholesale" to better reflect that these
segments are inclusive of its operations in North America as
well as Central and South America. There have been no
changes to the underlying reporting in either segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?,
Inc. and Subsidiaries
|
Selected
Condensed Consolidated Balance Sheet Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
August
1,
|
|
January 31,
|
|
August
2,
|
|
|
|
|
|
|
|
|
2015
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents
|
$
|
470,946
|
|
|
$
|
483,483
|
|
|
$
|
461,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
—
|
|
|
—
|
|
|
5,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables,
net
|
198,735
|
|
|
216,205
|
|
|
233,906
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
335,460
|
|
|
319,078
|
|
|
392,387
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
current assets
|
85,013
|
|
|
92,593
|
|
|
109,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property
and equipment, net
|
241,579
|
|
|
259,524
|
|
|
309,155
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
231,879
|
|
|
230,522
|
|
|
228,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
1,563,612
|
|
|
$
|
1,601,405
|
|
|
$
|
1,740,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
portion of capital lease obligations and borrowings
|
$
|
4,840
|
|
|
$
|
1,548
|
|
|
$
|
1,997
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
current liabilities
|
314,376
|
|
|
300,418
|
|
|
358,169
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt and capital lease obligations
|
2,057
|
|
|
6,165
|
|
|
6,735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
long-term liabilities
|
178,541
|
|
|
199,391
|
|
|
204,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
and nonredeemable noncontrolling interests
|
17,345
|
|
|
20,027
|
|
|
21,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?,
Inc. stockholders' equity
|
1,046,453
|
|
|
1,073,856
|
|
|
1,147,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Liabilities and Stockholders' Equity
|
$
|
1,563,612
|
|
|
$
|
1,601,405
|
|
|
$
|
1,740,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?,
Inc. and Subsidiaries
|
Condensed
Consolidated Cash Flow Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
|
|
|
|
|
August
1,
|
|
August
2,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
|
|
$
|
56,736
|
|
|
$
|
30,363
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash used in investing activities
|
|
|
(17,227)
|
|
|
(32,550)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash used in financing activities
|
|
|
(44,443)
|
|
|
(40,622)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect
of exchange rates on cash and cash equivalents
|
|
|
(7,603)
|
|
|
1,383
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
change in cash and cash equivalents
|
|
|
(12,537)
|
|
|
(41,426)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at the beginning of the year
|
|
|
483,483
|
|
|
502,945
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and cash equivalents at the end of the period
|
|
|
$
|
470,946
|
|
|
$
|
461,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
$
|
36,443
|
|
|
$
|
42,654
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent
|
|
|
$
|
129,611
|
|
|
$
|
142,996
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?,
Inc. and Subsidiaries
|
Reconciliation
of Net Cash Provided by Operating Activities to Free Cash
Flow
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
|
|
|
|
|
August
1,
|
|
August
2,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net
cash provided by operating activities
|
|
|
$
|
56,736
|
|
|
$
|
30,363
|
|
|
|
|
|
|
|
|
|
|
|
|
Less:
Purchases of property and equipment
|
|
|
(24,963)
|
|
|
(32,316)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free
cash flow
|
|
|
$
|
31,773
|
|
|
$
|
(1,953)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?,
Inc. and Subsidiaries
|
Retail
Store Data
|
International
Store Count
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
of August 1, 2015
|
|
As
of August 2, 2014
|
|
|
|
|
Total
|
|
Directly
Operated
|
|
Total
|
|
Directly
Operated
|
Region
|
|
|
|
Stores
|
|
Stores
|
|
Stores
|
|
Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States and Canada
|
456
|
|
456
|
|
488
|
|
488
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
and the Middle East
|
594
|
|
266
|
|
615
|
|
264
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
478
|
|
50
|
|
495
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
Central
and South America
|
95
|
|
43
|
|
87
|
|
39
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,623
|
|
815
|
|
1,685
|
|
837
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?,
Inc. and Subsidiaries
|
Retail
Store Data
|
U.S.
and Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended
|
|
|
|
|
|
|
|
|
August
1,
|
|
August
2,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Number
of stores at the beginning of the year
|
|
|
481
|
|
494
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
openings
|
|
|
4
|
|
5
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
closures
|
|
|
(29)
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
Number
of stores at the end of the period
|
|
|
456
|
|
488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
store square footage at the end of the period
|
|
|
2,194,000
|
|
2,316,000
|
|
|
|
| | |