{"id":833777,"date":"2025-04-03T16:21:10","date_gmt":"2025-04-03T20:21:10","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/guess-inc-reports-fiscal-year-2025-fourth-quarter-results\/"},"modified":"2025-04-03T16:21:10","modified_gmt":"2025-04-03T20:21:10","slug":"guess-inc-reports-fiscal-year-2025-fourth-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/guess-inc-reports-fiscal-year-2025-fourth-quarter-results\/","title":{"rendered":"Guess?, Inc. Reports Fiscal Year 2025 Fourth Quarter Results"},"content":{"rendered":"

<\/p>\n

Guess?, Inc. Reports Fiscal Year 2025 Fourth Quarter Results<\/span><\/b><\/p>\n

Fourth Quarter Fiscal 2025 Results:
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<\/span><\/b>Revenues Increased to $932 Million, Up 5% in U.S. Dollars and 9% in Constant Currency
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<\/i><\/b>Delivered Operating Margin of 11.1%; Adjusted Operating Margin of 11.4%
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<\/i><\/b>GAAP EPS of $1.16 and Adjusted EPS of $1.48<\/i><\/b><\/p>\n

Full Fiscal Year 2025 Results:
\n
<\/span><\/b>Revenues Increased to $3.0 Billion, Up 8% in U.S. Dollars and 10% in Constant Currency
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<\/i><\/b>Delivered Operating Margin of 5.8%; Adjusted Operating Margin of 6.0%
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<\/i><\/b>GAAP EPS of $0.77 and Adjusted EPS of $1.96<\/i><\/b><\/p>\n

Full Fiscal Year 2026 Outlook:
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<\/span><\/b>Expects Revenue Increase between 3.9% and 6.2% in U.S. Dollars
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<\/i><\/b>Expects GAAP and Adjusted Operating Margins between 4.3% and 5.2% and 4.5% and 5.4%, Respectively
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<\/i><\/b>Expects GAAP EPS between $1.03 and $1.37 and Adjusted EPS between $1.32 and $1.76
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<\/i><\/b>Plans to Execute Business and Portfolio Optimization Expected to Unlock Approximately $30 Million in Operating Profit in Fiscal Year 2027<\/i><\/b><\/p>\n

LOS ANGELES–(BUSINESS WIRE<\/a>)–
\nGuess?, Inc. (NYSE: GES) today reported financial results for its fourth quarter and full fiscal year ended February 1, 2025.\n<\/p>\n

\nCarlos Alberini, Chief Executive Officer, commented, \u201cIn the fourth quarter, we delivered revenue growth of 5% in U.S. dollars and 9% in constant currency. The growth in the period was primarily driven by the rag & bone acquisition coupled with positive momentum in our wholesale businesses in Europe and the Americas and increased licensing revenues. All of our operating segments posted revenue growth, except for our Asia segment. With this performance, we closed the year with revenue growth of 8% in U.S. dollars and 10% in constant currency. During the year, we delivered solid results with our Licensing segment and our wholesale businesses in Europe and the Americas, but missed our plans for our direct-to-consumer business due to slower customer traffic in North America and Asia. All considered, for the year we reached almost $3 billion in revenues and $174 million and $180 million in GAAP and adjusted operating earnings, respectively. Importantly, this year we reached a significant milestone for our Company, as we executed our first acquisition in Guess\u2019s history, with the addition of rag & bone to our portfolio.\u201d\n<\/p>\n

\nPaul Marciano, Co-Founder and Chief Creative Officer, commented, \u201cOver the last 44 years, we have built a significant global business supported by a powerful platform that integrates multiple product categories and strong capabilities. This infrastructure has fueled the development and growth of the Guess brand in more than 100 countries. Since the inception of our Company, we have built strong relationships with key partners to optimize our performance, offering customers the best products and providing a great shopping experience in any place in the world we choose to do business. We have great teams that work relentlessly with all our partners to perfect our model. We are very proud of what we have built together and want to thank them for their great contributions. We see great opportunities ahead for our Company and remain fully committed to maximizing our potential in the years to come.\u201d\n<\/p>\n

\nMr. Alberini concluded, \u201cAs we enter fiscal year 2026, we are excited about our growth opportunities for our core Guess business, our recently launched Guess Jeans brand and our just acquired rag & bone business. We are focusing our strategic initiatives on increasing direct-to-consumer sales productivity globally and improving profitability through business and portfolio optimization. In connection with this, after many years of running our own direct operations in Greater China, we believe there is an opportunity for this market to be directly developed and managed by a local, highly experienced partner. We have already met several potential candidates for consideration and we expect for this transition to be completed before the end of this fiscal year. In North America, we see an opportunity to streamline our Guess full price store portfolio by exiting non-strategic, unprofitable locations, and to reduce costs by consolidating some of our infrastructure supporting this business. Our fiscal 2026 outlook includes the anticipated impact from these actions and we expect that, together, they will unlock approximately $30 million in operating profit in fiscal 2027.\u201d\n<\/p>\n

Non-GAAP Information<\/span><\/b><\/p>\n

\nThis press release contains non-GAAP financial measures, including certain adjusted results of operations and outlook measures, constant currency information and free cash flow measures. See the heading \u201cPresentation of Non-GAAP Information\u201d for further information and the accompanying tables for a reconciliation to the comparable GAAP financial measure.\n<\/p>\n

rag & bone Acquisition<\/span><\/b><\/p>\n

\nOn April 2, 2024, the Company and global brand management firm WHP Global completed the previously announced acquisition of New York-based fashion brand rag & bone. Under the terms of the agreement, the Company acquired all the rag & bone operating assets and assumed the related operating liabilities of the business. In addition, a joint venture owned 50% each by the Company and WHP Global acquired rag & bone\u2019s intellectual property. As of April 2, 2024, the Company integrated rag & bone into its existing segments.\n<\/p>\n

Fourth Quarter Fiscal 2025 Results<\/span><\/b><\/p>\n

\nFor the fourth quarter of the fiscal year ended February 1, 2025 (\u201cfiscal 2025\u201d), the Company recorded GAAP net earnings of $81.4 million, a 29% decrease from $115.3 million for the same prior-year quarter. The results for the fourth quarter of fiscal 2025 included a net $18.9 million unrealized loss due to the change in fair value of the derivatives related to the Company\u2019s convertible senior notes due 2028 and the related convertible note hedge. GAAP diluted net earnings per share (\u201cEPS\u201d) decreased 32% to $1.16 for the fourth quarter of fiscal 2025, compared to $1.71 for the same prior-year quarter. The Company estimates a positive impact from its share buybacks of $0.05 and a negative impact from currency of $0.13 on GAAP diluted EPS in the fourth quarter of fiscal 2025 when compared to the same prior-year quarter.\n<\/p>\n

\nFor the fourth quarter of fiscal 2025, the Company\u2019s adjusted net earnings were $77.7 million, a 30% decrease from $110.8 million for the same prior-year quarter. Adjusted diluted EPS decreased 26% to $1.48, compared to $2.01 for the same prior-year quarter. The Company estimates a positive impact from its share buybacks of $0.09 and a negative impact from currency of $0.17 on adjusted diluted EPS in the fourth quarter of fiscal 2025 when compared to the same prior-year quarter.\n<\/p>\n

Net Revenue. <\/i><\/b>Total net revenue for the fourth quarter of fiscal 2025 increased 5% to $932.3 million from $891.1 million in the same prior-year quarter. In constant currency, net revenue increased by 9%.\n<\/p>\n