Guess, Inc., a leading American fashion brand, reported a total net revenue increase of 7% in the first half of fiscal year 2025, reaching $1.32 billion, compared to $1.23 billion in the same period of the previous year. On a constant currency basis, net revenue increased by 10%.
Guess reported a 7 percent increase in revenue for the first half of fiscal year 25, reaching $1.32 billion. However, profit from operations fell 56.2 percent to $27.9 million. In the second quarter of fiscal year 25, revenue grew 10 percent to $732.6 million, but the company posted a GAAP net loss of $10.6 million. The company's adjusted earnings fell 42 percent to $23 million in the second quarter of fiscal year 25.
Regionally, Europe saw revenue increase by 3% in US dollars and 8% in constant currency. The Americas retail segment saw revenue growth by 5% in both US dollars and constant currency, while the Americas wholesale segment saw a significant increase of 54% in US dollars and 53% in constant currency. However, Asia faced a 2% decline in revenue in US dollars, although it managed a 2% increase in constant currency. Licensing revenue increased by 12% in both US dollars and constant currency, the company said in a press release.
Despite revenue growth, Guess’ earnings from operations for the first half of fiscal 2025 saw a marked decline. GAAP earnings from operations fell 56.2 percent to $27.9 million, compared to $63.7 million in the same period last year. GAAP operating margin decreased by 3.1 percentage points, falling to 2.1 percent from 5.2 percent in the prior-year period. On an adjusted basis, earnings from operations decreased 54.8 percent to $30.3 million, down from $66.9 million last year, and adjusted operating margin also decreased by 3.1 percentage points to 2.3 percent from 5.4 percent.
In the second quarter of fiscal year 2025 (Q2 FY25), Guess reported total net revenues of $732.6 million, an increase of 10 percent from $664.5 million in the same quarter last year. On a constant currency basis, net revenues increased 13 percent. Despite the revenue growth, the company posted a GAAP net loss of $10.6 million for the quarter, compared to GAAP net earnings of $39 million in the same period last year. GAAP diluted net loss per share was $0.28, a significant drop from GAAP diluted net earnings per share of $0.59 in the year-ago quarter.
On an adjusted basis, Guess' net earnings for the second quarter were $23.0 million, representing a decrease of 42 percent from $39.7 million in the year-ago quarter. Adjusted diluted earnings per share also decreased 42 percent to $0.42, compared to $0.72 in the year-ago quarter. The company noted that its share repurchases and foreign exchange fluctuations each had a positive impact of $0.01 on adjusted diluted earnings per share for the quarter, the statement added.
The company’s operating earnings for the second quarter of fiscal 2025 decreased 26.0 percent to $47.8 million, compared to $64.6 million in the same period last year. GAAP operating margin fell 3.2 percentage points, declining to 6.5 percent from 9.7 percent in the prior-year quarter. On an adjusted basis, operating earnings for the second quarter fell 41.6 percent to $37.9 million, down from $65 million last year. Adjusted operating margin decreased 4.6 percentage points, falling to 5.2 percent from 9.8 percent in the same quarter last year.
“All of our segments, except Asia, recorded revenue growth. Our bottom-line results reflect our decision to significantly increase our marketing investments compared to last year’s spending to support the international expansion of our brands, including our core brand Guess, as well as the new additions to our portfolio: Guess Jeans and Rag & Bone,” he said. Carlos Alberini, general director.
Fibre2Fashion (DP) Press Desk
