Guess has posted solid sales growth for the first quarter ended May 3, which management said was ahead of their guidance.
The company’s net revenue increased 9 per cent year-on-year to $647.8 million (up 12 per cent in constant currency), attributed to the successful integration of Rag & Bone and strong wholesale businesses across Europe and the Americas.
In the Americas, retail revenues rose 9 per cent and wholesales revenues soared 63 per cent. Europe sales grew 8 per cent, while Asia sales slid 20 per cent.
On the bottom line, the company recorded net loss of $32.9 million compared to net income of $13.0 million in the year-ago period. This included a net $4.3 million unrealized loss compared to a net $38.5 million unrealized gain last year, due to the change in fair value of the derivatives related to convertible senior notes due 2028.
CEO Carlos Alberini said the first-quarter results exceeded expectations across key metrics.
“Disciplined expense management, combined with the better-than-expected top-line performance, enabled us to report operating results ahead of our guidance range, narrowing our loss for the quarter,” he added.
For the full year, Guess expects net revenue to increase 5.5-7.4 per cent.
“We continue to expect solid revenue growth driven by the expansion of Rag & Bone, the ongoing development of Guess Jeans and the new joint venture with the Chalhoub Group in the Middle East.
“On the cost side, we have taken proactive measures to manage tariff exposure and protect margins, limiting this year’s net impact to less than $10 million based on current conditions,” Alberini elaborated.
