LOS ANGELES, May 25, 2016
/PRNewswire/ -- Guess?, Inc. (NYSE: GES) today reported
financial results for its first quarter ended April 30,
2016.
First Quarter Fiscal 2017 Highlights
- Americas Retail revenues decreased 5% in U.S. dollars
and 3% in constant currency; retail comp sales including e-commerce
decreased 4% in U.S. dollars and 3% in constant
currency
- Europe revenues
decreased 1% in U.S. dollars and 3% in constant
currency
- Asia revenues
decreased 15% in U.S. dollars and 11% in constant
currency
- Americas Wholesale revenues decreased 12% in U.S.
dollars and 7% in constant currency
- GAAP loss from operations of $29 million in Q1 fiscal 2017; compared to
earnings from operations of $4
million in Q1 fiscal 2016; Adjusted loss from operations of
$23 million in Q1 fiscal
2017
- Announces quarterly cash dividend of $0.225
This press release contains certain non-GAAP, or adjusted,
financial measures, which exclude the impact of restructuring
charges and a related exit tax charge recorded during the first
quarter of fiscal 2017. A reconciliation of reported GAAP results
to comparable non-GAAP results is provided in the accompanying
tables and discussed under the heading "Presentation of Non-GAAP
Information" below.
First Quarter Fiscal 2017 Results
Victor Herrero, Chief Executive
Officer, commented, "Our first quarter adjusted operating loss
finished at the low-end of our guidance as sales finished below our
expectations. In the Americas, our retail business in the US and
Canada was very challenging,
especially in the month of April. In Europe, our retail business performed
extremely well and delivered positive comp store sales in the
mid-teens, a trend of strong comps that started in the second half
of last year. In Asia, we
delivered positive comps in Korea, although Greater China was below our expectations as we
continue to build out our infrastructure there and transition the
business to a direct model."
Mr. Herrero continued, "I had highlighted on our last earnings
call that the first six months of the year would be a transition
period. The start to the year has been a bit more challenging than
we anticipated especially in the Americas and to a lesser extent in
Greater China. These developments
are reflected in our guidance for the second quarter as well as our
updated guidance for the full year. We are still confident that we
will be able to achieve the three year plan goals we provided in
March this year, but with a different cadence than initially
planned."
For the first quarter of fiscal 2017, the Company recorded GAAP
net loss of $25.2 million, compared
to net earnings of $3.3 million for
the first quarter of fiscal 2016. GAAP diluted loss per share was
$0.30, compared to diluted earnings
per share of $0.04 for the prior-year
quarter, a decrease of $0.34 per
share. The negative impact of currency on diluted loss per share in
the first quarter of fiscal 2017 was approximately $0.08 per share.
During the first quarter of fiscal 2017, the Company incurred
restructuring charges and a related exit tax charge totaling
approximately $5.8 million, including
related tax impacts, or an unfavorable $0.07 per share impact. Excluding the impact of
these charges, adjusted net loss was $19.4
million and adjusted diluted loss per share was $0.23 during the first quarter of fiscal
2017.
Total net revenue for the first quarter of fiscal 2017 decreased
6.3% to $448.8 million, from
$478.8 million in the prior-year
quarter. In constant currency, total net revenue decreased 5.0%.
Refer to the accompanying tables for a summary of net revenue by
segment as well as information regarding the impact of foreign
currency exchange rate fluctuations on the Company's net
revenue.
GAAP operating loss for the first quarter of fiscal 2017 was
$29.0 million (including a
$0.9 million unfavorable currency
translation impact), compared to operating earnings of $4.4 million in the prior-year period, a decrease
of $33.3 million. GAAP operating
margin in the first quarter decreased 740 basis points to negative
6.5%, from 0.9% in the prior-year quarter, due primarily to lower
shipments in our European wholesale business and the negative
impact from currency exchange rate fluctuations and restructuring
charges on the operating margin. The negative impact of currency on
operating margin for the quarter was roughly 150 basis points.
Excluding the impact of the restructuring charges, adjusted
operating loss was $22.9 million and
adjusted operating margin was negative 5.1%, a decrease of 600
basis points compared to the same prior-year quarter.
- Operating margin for the Company's Americas Retail
segment decreased 280 basis points to negative 6.2% in the first
quarter of fiscal 2017, from negative 3.4% in the prior-year
period. The decrease in operating margin was driven primarily by
lower gross margins and a higher SG&A rate due primarily to the
negative impact on the fixed cost structure resulting from negative
comparable store sales.
- Operating margin for the Company's Europe segment decreased 770 basis points to
negative 10.4% in the first quarter of fiscal 2017, from negative
2.7% in the prior-year period, due to lower gross margins and a
higher SG&A rate. The lower gross margins were driven primarily
by the unfavorable impact from lower wholesale shipments, currency
exchange rate fluctuations and more promotions, partially offset by
the favorable impact from business mix and positive comparable
store sales. The higher SG&A rate was due primarily to overall
deleveraging driven by lower wholesale shipments, partially offset
by the favorable impact on the fixed cost structure resulting from
positive comparable store sales.
- Operating margin for the Company's Asia segment decreased 840 basis points to
negative 1.2% in the first quarter of fiscal 2017, from 7.2% in the
prior-year period. The decrease in operating margin was due to a
higher SG&A rate and lower overall gross margins due primarily
to the unfavorable impact from business mix and higher expenses
driven by expansion in China.
- Operating margin for the Company's Americas Wholesale
segment decreased 100 basis points to 17.1% in the first quarter of
fiscal 2017, from 18.1% in the prior-year period. The decrease in
operating margin was due to lower product margins driven primarily
by the unfavorable impact from currency exchange rate fluctuations
on product costs.
- Operating margin for the Company's Licensing segment
increased 240 basis points to 91.4% in the first quarter of fiscal
2017, compared to 89.0% in the prior-year period.
Other net expense, which primarily includes net unrealized and
realized mark-to-market revaluation losses on foreign exchange
currency contracts, partially offset by net unrealized and realized
gains on non-operating assets, was $1.1
million for the first quarter of fiscal 2017, compared to
other net income of $2.6 million in
the prior-year quarter.
Dividends
The Company's 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
June 24, 2016 to shareholders of record at the close of
business on June 8, 2016.
Outlook
The following guidance assumes that foreign currency exchange
rates remain at prevailing rates:
The Company's expectations for the second quarter of fiscal 2017
ending July 30, 2016, are as follows:
- Consolidated net revenues are expected to increase
between 0.5% and 2.5% in U.S. dollars and constant
currency.
- Operating margin is expected to be between 1.5% and 2.5%
and includes 60 basis points of currency headwind.
- Diluted earnings per share are expected to be in the
range of $0.04 to $0.08. The
estimated impact on earnings per share of the currency headwinds is
approximately $0.06.
The Company updated its outlook for the fiscal year ending
January 28, 2017, which is now as follows:
- Consolidated net revenues are expected to increase
between 5.5% and 7.5% in U.S. dollars. Currency tailwinds are
expected to positively impact consolidated revenue growth by
approximately 0.5%. Excluding the impact of currency, consolidated
net revenues are expected to increase between 5.0% and 7.0% in
constant currency.
- GAAP operating margin is expected to be between 3.0% and
4.0% and includes 40 basis points of currency headwind; Adjusted
operating margin is expected to be between 3.5% and
4.5%.
- GAAP diluted earnings per share are expected to be in the
range of $0.48 to $0.68. The
estimated impact on earnings per share of the currency headwinds is
approximately $0.12. Adjusted diluted
earnings per share are expected to be in the range of $0.55 to $0.75.
During the first quarter of fiscal 2017, the Company initiated a
global cost reduction and restructuring plan to streamline its
operational structure and reduce expenses. The Company's adjusted
outlook for the full year excludes the impact of the restructuring
charges, related exit tax charge and tax impact where applicable,
recorded during the first quarter of fiscal 2017. The Company's
expectations for the second quarter ending July 30, 2016, and
the Company's adjusted and GAAP outlook for the fiscal year ending
January 28, 2017, also exclude the impact of any restructuring
charges that may be recorded in the remainder of fiscal 2017.
On a segment basis, the Company expects the following ranges for
percentage changes for comparable store sales ("comps") and net
revenue in U.S. dollars and constant currency compared to the same
prior-year period:
Outlook by
Segment1
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Second Quarter of
Fiscal 2017
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Fiscal Year
2017
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U.S.
Dollars
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Constant
Currency2
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U.S.
Dollars
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Constant
Currency2
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Americas
Retail:
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Comps
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down MSD to
LSD
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down MSD to
LSD
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down LSD to up
LSD
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down LSD to up
LSD
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Net
Revenue
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down MSD to
LSD
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down LSD
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flat to up
LSD
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flat to up
LSD
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Europe:
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Comps
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__
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up HSD to
LDD
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__
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up HSD to
LDD
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Net
Revenue
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up HSD to
LDD
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up MSD
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up
mid-teens
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up LDD
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Asia:
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Net
Revenue
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down LSD to up
LSD
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flat to up
MSD
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up HSD to
LDD
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up LDD to
low-teens
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Americas
Wholesale:
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Net
Revenue
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flat
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up LSD
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up LSD
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up MSD
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Licensing:
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Net
Revenue
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down HSD
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__
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down HSD
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__
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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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Presentation of Non-GAAP Information
The financial information presented in this release includes
non-GAAP financial measures such as "adjusted" results (to exclude
the impact of restructuring charges, related exit tax charge and
tax impact where applicable, incurred during the first quarter of
fiscal 2017), 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.
The Company has excluded restructuring charges, related exit tax
charge and tax impact where applicable, incurred during the first
quarter of fiscal 2017 from its adjusted financial measures
primarily because it does not believe such charges reflect the
Company's ongoing operating results or future outlook. The Company
believes that these adjusted financial measures are useful as an
additional means for investors to evaluate the comparability of the
Company's operating results when reviewed in conjunction with the
Company's GAAP financial statements. A reconciliation of reported
GAAP results to comparable non-GAAP results is provided in the
accompanying tables.
This release also 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,
actual 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 for our actual and forecasted results,
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 4:45 pm (ET) on May 25, 2016 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
April 30, 2016, the Company directly operated 840 retail
stores in the Americas, Europe and
Asia. The Company's licensees and
distributors operated 792 additional retail stores worldwide. As of
April 30, 2016, the Company and its licensees and distributors
operated in more than 95 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 our Chief Executive Officer, Victor Herrero), guidance for the second quarter
and full year of fiscal 2017, as well as our three-year plans
(including revenues, operating margin and earnings per share
growth), 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, including expansion in emerging markets and joint
ventures; our ability to successfully or timely implement plans for
cost and workforce reductions; changes to our short or long-term
strategic initiatives; 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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Contact:
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Guess?,
Inc.
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Fabrice
Benarouche
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VP, Finance and
Investor Relations
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(213)
765-5578
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Guess?, Inc. and
Subsidiaries
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Condensed
Consolidated Statements of Income (Loss)
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(amounts in
thousands, except per share data)
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Three Months
Ended
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April 30,
2016
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May 2,
2015
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$
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%
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|
$
|
%
|
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Product
sales
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$
|
426,468
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95.0%
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$
|
452,959
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94.6%
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|
Net
royalties
|
|
22,347
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5.0%
|
|
|
25,865
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|
5.4%
|
|
Net
revenue
|
|
448,815
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|
100.0%
|
|
|
478,824
|
|
100.0%
|
|
|
|
|
|
|
|
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|
|
Cost of product
sales
|
|
306,056
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|
68.2%
|
|
|
313,339
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65.4%
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|
Gross
profit
|
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142,759
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31.8%
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|
165,485
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34.6%
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Selling, general and
administrative expenses
|
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165,654
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36.9%
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|
161,132
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33.7%
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|
Restructuring
charges
|
|
6,083
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1.4%
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—
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0.0%
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Earnings (loss) from
operations
|
|
(28,978)
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(6.5%)
|
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|
4,353
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|
0.9%
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|
Other income
(expense):
|
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|
Interest
expense
|
|
(520)
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|
(0.1%)
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|
(435)
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|
(0.1%)
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|
Interest
income
|
|
651
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|
0.1%
|
|
|
272
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|
0.1%
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Other, net
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|
(1,098)
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(0.2%)
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|
2,626
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0.5%
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Earnings (loss)
before income tax expense (benefit)
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(29,945)
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(6.7%)
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|
6,816
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|
1.4%
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Income tax expense
(benefit)
|
|
(4,791)
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(1.1%)
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|
2,829
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0.6%
|
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|
|
|
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|
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|
Net earnings
(loss)
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|
(25,154)
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(5.6%)
|
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|
3,987
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|
0.8%
|
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|
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|
|
|
|
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|
Net earnings
attributable to noncontrolling interests
|
|
24
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|
0.0%
|
|
|
646
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|
0.1%
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|
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|
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|
Net earnings (loss)
attributable to Guess?, Inc.
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$
|
(25,178)
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(5.6%)
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|
$
|
3,341
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0.7%
|
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|
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|
Net earnings (loss)
per common share attributable to common stockholders:
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Basic
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|
$
|
(0.30)
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|
|
$
|
0.04
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Diluted
|
|
$
|
(0.30)
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|
|
|
$
|
0.04
|
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|
Weighted average
common shares outstanding attributable to common
stockholders:
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Basic
|
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83,514
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|
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84,965
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Diluted
|
|
83,514
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|
|
|
85,099
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|
|
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|
|
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|
Effective tax
rate
|
|
16.0%
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|
|
|
41.5%
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|
Adjusted loss from
operations1:
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$
|
(22,895)
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(5.1%)
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|
Adjusted net loss
attributable to Guess?, Inc.1:
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$
|
(19,371)
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(4.3%)
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Adjusted diluted loss
per common share attributable to common
stockholders1:
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$
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(0.23)
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Adjusted effective
tax rate1
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18.9%
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Notes:
|
1
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The adjusted results
reflect the exclusion of restructuring charges, related exit tax
charge and tax impact where applicable, recorded during the first
quarter of fiscal 2017. No adjustments have been made to the same
prior-year period. A complete reconciliation of actual results to
adjusted results is presented in the table entitled "Reconciliation
of GAAP Results to Adjusted Results."
|
Guess?, Inc. and
Subsidiaries
|
Reconciliation of
GAAP Results to Adjusted Results
|
(dollars in
thousands)
|
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The following table
provides reconciliations of reported GAAP loss from operations to
adjusted loss from operations,
reported GAAP net loss attributable to Guess?, Inc. to adjusted net
loss attributable to Guess?, Inc. and reported GAAP
income tax benefit to adjusted income tax benefit for the three
months ended April 30, 2016.
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|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
April 30,
2016
|
|
|
|
|
|
|
|
|
%
of
|
|
|
|
|
|
|
$
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP loss
from operations
|
|
$
|
(28,978)
|
|
(6.5%)
|
Restructuring
charges1
|
|
6,083
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted loss from
operations
|
|
$
|
(22,895)
|
|
(5.1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP net
loss attributable to Guess?, Inc.
|
$
|
(25,178)
|
|
(5.6%)
|
|
|
|
|
|
|
|
|
|
Restructuring
charges1
|
|
6,083
|
|
|
|
|
|
|
|
Exit tax
charge2
|
|
1,911
|
|
|
Income
tax adjustments3
|
|
(2,187)
|
|
|
|
|
|
|
|
Total income tax effect
|
|
(276)
|
|
|
|
|
|
|
|
Total adjustments
affecting net loss attributable to Guess?, Inc.
|
5,807
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net loss
attributable to Guess?, Inc.
|
$
|
(19,371)
|
|
(4.3%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP income
tax benefit
|
|
$
|
(4,791)
|
|
|
|
|
|
|
|
Exit tax
charge2
|
|
(1,911)
|
|
|
Income
tax adjustments3
|
|
2,187
|
|
|
|
|
|
|
|
Total income tax effect
|
|
276
|
|
|
|
|
|
|
|
Adjusted income
tax benefit
|
|
$
|
(4,515)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
18.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
1
|
During the first
quarter of fiscal 2017, the Company initiated a global cost
reduction and restructuring plan to streamline its operational
structure and reduce expenses which resulted in restructuring
charges, mainly related to cash-based severance costs, incurred
during the three months ended April 30, 2016. No adjustments have
been made to the same prior-year period.
|
|
|
2
|
As a result of the
global cost reduction and restructuring plan, the Company incurred
an estimated exit tax charge related to its reorganization in
Europe during the three months ended April 30, 2016.
|
|
|
3
|
The income tax effect
of the restructuring charges was based on the Company's assessment
of deductibility using the statutory tax rate of the tax
jurisdiction in which the charges were incurred.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Consolidated
Segment Data
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
April
30,
|
|
May
2,
|
|
%
|
|
|
|
|
|
|
2016
|
|
2015
|
|
change
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue:
|
|
|
|
|
|
|
Americas
Retail
|
$
|
204,161
|
|
|
$
|
214,249
|
|
|
(5%)
|
|
Europe
|
135,380
|
|
|
137,397
|
|
|
(1%)
|
|
Asia
|
54,129
|
|
|
64,035
|
|
|
(15%)
|
|
Americas
Wholesale
|
32,798
|
|
|
37,278
|
|
|
(12%)
|
|
Licensing
|
22,347
|
|
|
25,865
|
|
|
(14%)
|
|
|
|
|
|
|
$
|
448,815
|
|
|
$
|
478,824
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations:
|
|
|
|
|
|
|
Americas
Retail
|
$
|
(12,601)
|
|
|
$
|
(7,209)
|
|
|
(75%)
|
|
Europe
|
(14,085)
|
|
|
(3,668)
|
|
|
(284%)
|
|
Asia
|
(669)
|
|
|
4,613
|
|
|
(115%)
|
|
Americas
Wholesale
|
5,611
|
|
|
6,747
|
|
|
(17%)
|
|
Licensing
|
20,415
|
|
|
23,025
|
|
|
(11%)
|
|
Corporate
Overhead
|
(21,566)
|
|
|
(19,155)
|
|
|
13%
|
|
Restructuring
Charges
|
(6,083)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
$
|
(28,978)
|
|
|
$
|
4,353
|
|
|
(766%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margins:
|
|
|
|
|
|
|
Americas
Retail
|
(6.2%)
|
|
|
(3.4%)
|
|
|
|
|
Europe
|
(10.4%)
|
|
|
(2.7%)
|
|
|
|
|
Asia
|
(1.2%)
|
|
|
7.2%
|
|
|
|
|
Americas
Wholesale
|
17.1%
|
|
|
18.1%
|
|
|
|
|
Licensing
|
91.4%
|
|
|
89.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
including restructuring charges
|
(6.5%)
|
|
|
0.9%
|
|
|
|
|
Total Company before
restructuring charges
|
(5.1%)
|
|
|
0.9%
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Constant Currency
Financial Measures
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
April 30,
2016
|
|
May 2,
2015
|
|
%
change
|
|
As
Reported
|
|
Foreign
Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail
|
$
|
204,161
|
|
|
$
|
3,024
|
|
|
$
|
207,185
|
|
|
$
|
214,249
|
|
|
(5%)
|
|
(3%)
|
|
Europe
|
135,380
|
|
|
(1,810)
|
|
|
133,570
|
|
|
137,397
|
|
|
(1%)
|
|
(3%)
|
|
Asia
|
54,129
|
|
|
3,007
|
|
|
57,136
|
|
|
64,035
|
|
|
(15%)
|
|
(11%)
|
|
Americas
Wholesale
|
32,798
|
|
|
1,955
|
|
|
34,753
|
|
|
37,278
|
|
|
(12%)
|
|
(7%)
|
|
Licensing
|
22,347
|
|
|
—
|
|
|
22,347
|
|
|
25,865
|
|
|
(14%)
|
|
(14%)
|
|
|
|
|
|
|
$
|
448,815
|
|
|
$
|
6,176
|
|
|
$
|
454,991
|
|
|
$
|
478,824
|
|
|
(6%)
|
|
(5%)
|
|
|
Guess?, Inc. and
Subsidiaries
|
Selected Condensed
Consolidated Balance Sheet Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
30,
|
|
January 30,
|
|
May
2,
|
|
|
|
|
|
|
|
|
2016
|
|
2016
|
|
20151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
427,485
|
|
|
$
|
445,480
|
|
|
$
|
459,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables,
net
|
177,669
|
|
|
222,359
|
|
|
195,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
358,191
|
|
|
311,704
|
|
|
327,101
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
assets
|
62,305
|
|
|
56,709
|
|
|
71,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
265,818
|
|
|
255,344
|
|
|
249,784
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
261,308
|
|
|
247,152
|
|
|
252,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
1,552,776
|
|
|
$
|
1,538,748
|
|
|
$
|
1,555,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
capital lease obligations and borrowings
|
$
|
4,443
|
|
|
$
|
4,024
|
|
|
$
|
5,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
314,979
|
|
|
323,035
|
|
|
279,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
23,539
|
|
|
2,318
|
|
|
2,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
179,498
|
|
|
172,826
|
|
|
193,705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable and
nonredeemable noncontrolling interests
|
21,567
|
|
|
18,070
|
|
|
16,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc.
stockholders' equity
|
1,008,750
|
|
|
1,018,475
|
|
|
1,058,551
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
1,552,776
|
|
|
$
|
1,538,748
|
|
|
$
|
1,555,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes
|
|
|
|
|
|
|
|
|
|
|
|
1
|
As a result of the
adoption of new authoritative guidance during fiscal 2016 which
requires that all deferred tax liabilities and assets be classified
as long-term on the balance sheet, other current assets and other
assets at May 2, 2015 were adjusted to reflect the reclassification
of deferred tax assets for $19.7 million from current to
long-term.
|
Guess?, Inc. and
Subsidiaries
|
Condensed
Consolidated Cash Flow Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April
30,
|
|
May
2,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
$
|
(30,844)
|
|
|
$
|
9,135
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(10,086)
|
|
|
(10,535)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) financing activities
|
|
|
3,932
|
|
|
(22,924)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
|
19,003
|
|
|
(31)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
|
(17,995)
|
|
|
(24,355)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
|
445,480
|
|
|
483,483
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the period
|
|
|
$
|
427,485
|
|
|
$
|
459,128
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
$
|
16,680
|
|
|
$
|
18,330
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent
|
|
|
$
|
63,256
|
|
|
$
|
64,715
|
|
Guess?, Inc. and
Subsidiaries
|
Reconciliation of
Net Cash Provided by (Used in) Operating Activities to Free Cash
Flow
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April
30,
|
|
May
2,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
|
|
$
|
(30,844)
|
|
|
$
|
9,135
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Purchases of
property and equipment
|
|
|
(17,841)
|
|
|
(11,604)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
$
|
(48,685)
|
|
|
$
|
(2,469)
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Data
|
International
Store Count
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
April 30, 2016
|
|
As of May 2,
2015
|
|
|
|
|
Total
|
|
Directly
Operated
|
|
Total
|
|
Directly
Operated
|
Region
|
Stores
|
|
Stores
|
|
Stores
|
|
Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
343
|
|
342
|
|
356
|
|
356
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada
|
112
|
|
112
|
|
114
|
|
114
|
|
|
|
|
|
|
|
|
|
|
|
|
Central and South
America
|
92
|
|
46
|
|
93
|
|
42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Americas
|
547
|
|
500
|
|
563
|
|
512
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe and the Middle
East
|
588
|
|
275
|
|
605
|
|
267
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
497
|
|
65
|
|
499
|
|
52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,632
|
|
840
|
|
1,667
|
|
831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Directly Operated
Retail Store Data
|
U.S. and
Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
April
30,
|
|
May
2,
|
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores at
the beginning of the year
|
455
|
|
481
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
openings
|
|
|
2
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Store
closures
|
|
|
(3)
|
|
(11)
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores at
the end of the period
|
454
|
|
470
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total store square
footage at the end of the period
|
2,206,000
|
|
2,251,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Americas Retail
Net Revenue
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
April
30,
|
|
May
2,
|
|
%
|
|
2016
|
|
2015
|
|
change
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Retail
stores
|
$
|
183,950
|
|
|
$
|
196,037
|
|
|
(6.2%)
|
|
|
|
|
|
|
|
E-commerce
sites
|
20,211
|
|
|
18,212
|
|
|
11.0%
|
|
|
|
|
|
|
|
Total
|
$
|
204,161
|
|
|
$
|
214,249
|
|
|
(4.7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Change in Comparable Store Sales
|
U.S. and
Canada
|
|
|
|
|
|
Three Months
Ended
|
|
April 30,
2016
|
|
U.S.
Dollars
|
|
Constant
Currency
|
|
|
|
|
Excluding e-commerce
sales
|
(5.7%)
|
|
(4.5%)
|
|
|
|
|
Impact of e-commerce
sales
|
1.5%
|
|
1.4%
|
|
|
|
|
Including e-commerce
sales
|
(4.2%)
|
|
(3.1%)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/guess-inc-reports-first-quarter-results-300275025.html
SOURCE Guess?, Inc.