Guess? Inc
NYSE:GES
Guess? Inc
Guess?, Inc. engages in designing, marketing, distributing and licensing of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The company is headquartered in Los Angeles, California and currently employs 12,500 full-time employees. The Company’s segments include Americas Retail, Americas Wholesale, Europe, Asia and Licensing. Its Americas Retail segment sells its products direct-to-consumer through a network of directly operated retail and factory outlet stores and e-commerce sites in the Americas. Its Americas Wholesale segment sells its products through wholesale channels throughout the Americas and to third-party distributors based in Central and South America, as well as licensed retail locations operated by its wholesale partners. Its Europe segment sells its products through direct-to-consumer and wholesale channels throughout Europe and the Middle East. Its Asia segment sells its products through direct-to-consumer and wholesale channels throughout Asia and the Pacific. Its Licensing segment includes licensing operations. Its apparel trademarks include GUESS and GUESS?.
Guess?, Inc. engages in designing, marketing, distributing and licensing of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The company is headquartered in Los Angeles, California and currently employs 12,500 full-time employees. The Company’s segments include Americas Retail, Americas Wholesale, Europe, Asia and Licensing. Its Americas Retail segment sells its products direct-to-consumer through a network of directly operated retail and factory outlet stores and e-commerce sites in the Americas. Its Americas Wholesale segment sells its products through wholesale channels throughout the Americas and to third-party distributors based in Central and South America, as well as licensed retail locations operated by its wholesale partners. Its Europe segment sells its products through direct-to-consumer and wholesale channels throughout Europe and the Middle East. Its Asia segment sells its products through direct-to-consumer and wholesale channels throughout Asia and the Pacific. Its Licensing segment includes licensing operations. Its apparel trademarks include GUESS and GUESS?.
Top-line Beat: Q1 revenue grew 9% to $648 million, coming in ahead of expectations, with the rag & bone acquisition a key driver.
Core Momentum: Organic Guess business grew 3% in constant currency, with strong wholesale in Europe and the Americas offsetting retail softness.
Margin Headwinds: Gross margin fell 200 bps to 39.9% due to mix and lower royalties; adjusted operating loss of $26 million was better than forecast.
Guidance Maintained: Full-year revenue growth now expected at 5.5%–7.4%, operating margin 4.4%–5.1%, and EPS $1.32–$1.64; guidance unchanged.
Asia and Retail Weakness: Asia revenues dropped over 20%, and Americas retail comps were down 10%, but improvement seen in late Q1.
Inventory Up by Design: Inventory grew 15% as the company brought in product early to offset supply-chain disruptions, especially in Europe.
Strategic Initiatives: Management is focused on increasing retail productivity, adjusting pricing, optimizing the store fleet, and improving infrastructure efficiency.
