LOS ANGELES, March 15,
2017 /PRNewswire/ -- Guess?, Inc. (NYSE: GES) today reported
unaudited financial results for its fourth quarter and fiscal year
ended January 28, 2017.
Victor Herrero, Chief Executive
Officer, commented, "Despite continued softness in the Americas, we
are pleased to report that fourth quarter revenues for the company
were up 3%, driven by strong double digit growth in both
Europe and Asia. In Europe, our revenues were up 11% driven by new
store openings and another good quarter of positive comp store
sales. Turning to Asia, revenues
finished up 27% driven by new store openings and positive comp
store sales in China. We are
encouraged by the progress we are making in these two regions and
will continue to allocate the majority of our capital investment
there."
Mr. Herrero continued, "As we head into fiscal year 2018, we
will build on the good momentum we are experiencing in both
Europe and Asia and will continue our retail expansion
plan there. In the Americas Retail, where the retail environment
remains challenging, we are focused on profitability improvements.
We will continue to negotiate rent reductions whenever possible and
plan to close 60 stores in fiscal 2018. And finally, we will remain
focused on implementing supply chain initiatives that should drive
profit improvement in fiscal 2018."
Mr. Herrero concluded, "As I think about the future of our
company, it is critical that we remain focused on flowing
high-quality product, delivering best-in-class digital and in-store
experiences, and maintaining our long-term brand building approach
anchored on investments in advertising and marketing, supply chain
and our digital platform."
This press release contains certain non-GAAP, or adjusted,
financial measures. References to "adjusted" results exclude the
impact of (i) asset impairment charges, (ii) a gain from the sale
of a minority interest investment, (iii) restructuring charges,
(iv) a restructuring related exit tax charge, (v) the related tax
effects of these adjustments and (vi) the impact of a non-cash
valuation allowance established on certain deferred tax assets,
where applicable. 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.
Fourth Quarter Fiscal 2017 Results
For the fourth quarter of fiscal 2017, the Company recorded GAAP
net earnings of $6.6 million, an
86.3% decrease from $47.8 million for
the fourth quarter of fiscal 2016. GAAP diluted earnings per share
decreased 86.0% to $0.08 for the
fourth quarter of fiscal 2017, from $0.57 for the prior-year quarter.
For the fourth quarter of fiscal 2017, the Company recorded
adjusted net earnings of $34.6
million, a 27.9% decrease from adjusted net earnings of
$48.0 million for the fourth quarter
of fiscal 2016. Adjusted diluted earnings per share decreased 28.1%
to $0.41, from adjusted diluted
earnings per share of $0.57 for the
prior-year quarter. In addition, the Company estimates the negative
impact of currency on diluted earnings per share in the fourth
quarter of fiscal 2017 was approximately $0.01 per share.
Net Revenue. Total net revenue for the fourth
quarter of fiscal 2017 increased 3.2% to $679.3 million, compared to $658.3 million in the prior-year quarter. In
constant currency, net revenue increased by 4.3%.
- Americas Retail revenues decreased 6.4% in U.S. dollars and
6.3% in constant currency. In the U.S. and Canada, retail comp sales including e-commerce
decreased 7.0% in U.S. dollars and 7.4% in constant currency.
- Europe revenues increased
11.4% in U.S. dollars and 13.5% in constant currency.
- Asia revenues increased 26.6%
in U.S. dollars and 27.9% in constant currency.
- Americas Wholesale revenues increased 1.0% in U.S. dollars and
3.7% in constant currency.
- Licensing revenues decreased 8.6% in U.S. dollars and constant
currency.
Operating Earnings. GAAP operating earnings
for the fourth quarter of fiscal 2017 decreased 70.0% to
$21.0 million (including a
$2.3 million unfavorable currency
translation impact), from $70.0
million in the prior-year period. GAAP operating margin in
the fourth quarter decreased 750 basis points to 3.1%, from 10.6%
in the prior-year quarter, driven primarily by higher asset
impairment charges, more markdowns and the negative impact on the
Company's fixed cost structure resulting from negative comparable
store sales in Americas Retail. Higher asset impairment charges
recorded during the fourth quarter of fiscal 2017 unfavorably
impacted operating margin by 480 basis points compared to the same
prior-year period. The negative impact of currency on operating
margin for the quarter was roughly 40 basis points.
For the fourth quarter of fiscal 2017, adjusted operating
earnings was $53.9 million and
adjusted operating margin was 7.9%, a decrease of 270 basis points
compared to the same prior-year period.
- Operating margin for the Company's Americas Retail segment
decreased by 17.7% to negative 11.1% in the fourth quarter of
fiscal 2017, from 6.6% in the prior-year period. Higher asset
impairment charges recorded during the fourth quarter of fiscal
2017 negatively impacted the operating margin for the Company's
Americas Retail segment by 11.4% compared to the same prior-year
period. Excluding the impact of the asset impairment charges,
operating margin for the Company's Americas Retail segment
decreased by 630 basis points compared to the same prior-year
period. This decrease was driven primarily by more markdowns and
the negative impact on the fixed cost structure resulting from
negative comparable store sales.
- Operating margin for the Company's Europe segment increased 90 basis points to
16.0% in the fourth quarter of fiscal 2017, compared to 15.1% in
the prior-year period, due primarily to higher gross margins. The
higher gross margins were driven primarily by the favorable impact
from higher initial mark-ups, partially offset by higher occupancy
costs due to retail expansion.
- Operating margin for the Company's Asia segment was flat at 3.5% in the fourth
quarter of fiscal 2017 compared to the same prior-year period.
- Operating margin for the Company's Americas Wholesale segment
decreased 200 basis points to 17.0% in the fourth quarter of fiscal
2017, from 19.0% in the prior-year period, driven by a higher
SG&A rate due primarily to timing of expenses.
- Operating margin for the Company's Licensing segment increased
30 basis points to 88.2% in the fourth quarter of fiscal 2017,
compared to 87.9% in the prior-year period.
Other net income, which primarily includes net unrealized and
realized mark-to-market revaluation gains on foreign exchange
currency contracts and unrealized gains on non-operating assets,
partially offset by net unrealized mark-to-market revaluation
losses on foreign currency balances, was $4.5 million in the fourth quarter of fiscal
2017, compared to $0.3 million in the
prior-year quarter.
Fiscal Year 2017 Results
For the fiscal year ended January 28, 2017, the Company
recorded GAAP net earnings of $22.8
million, a 72.2% decrease from $81.9
million for the fiscal year ended January 30,
2016. GAAP diluted earnings per share decreased 71.9% to
$0.27 in fiscal year 2017, from
$0.96 in the prior year.
For the fiscal year ended January 28, 2017, the Company
recorded adjusted net earnings of $37.2
million, a 55.3% decrease from adjusted net earnings of
$83.4 million for the fiscal year
ended January 30, 2016. Adjusted diluted earnings per share
decreased 55.1% to $0.44 in fiscal
year 2017, from adjusted diluted earnings per share of $0.98 for the prior year. In addition, the
Company estimates the negative impact of currency on diluted
earnings per share for the fiscal year ended January 28, 2017
was approximately $0.13 per
share.
Net Revenue. Total net revenue for fiscal year
2017 increased 0.2% to $2.21 billion,
compared to $2.20 billion in the
prior year. In constant currency, net revenue increased by
1.0%.
- Americas Retail revenues decreased 4.7% in U.S. dollars and
4.1% in constant currency. In the U.S. and Canada, retail comp sales including e-commerce
decreased 4.9% in U.S. dollars and 4.5% in constant currency.
- Europe revenues increased 8.9%
in U.S. dollars and 9.2% in constant currency.
- Asia revenues increased 3.6%
in U.S. dollars and 4.9% in constant currency.
- Americas Wholesale revenues decreased 5.9% in U.S. dollars and
2.4% in constant currency.
- Licensing revenues decreased 12.5% in U.S. dollars and constant
currency.
Operating Earnings. GAAP operating earnings for
fiscal year 2017 decreased 81.3% to $22.7
million (including a $3.6
million unfavorable currency translation impact), from
$121.4 million in the prior year.
GAAP operating margin for fiscal 2017 decreased 450 basis points to
1.0%, from 5.5% in the prior year, driven primarily by higher asset
impairment charges, more markdowns and the negative impact on the
Company's fixed cost structure resulting from negative comparable
store sales in Americas Retail. Higher asset impairment charges
recorded during fiscal 2017 unfavorably impacted operating margin
by 150 basis points compared to the prior year. Restructuring
charges negatively impacted operating margin by 30 basis points in
fiscal 2017. The negative impact of currency on operating margin
for fiscal 2017 was roughly 70 basis points.
For fiscal year 2017, adjusted operating earnings was
$63.2 million and adjusted operating
margin was 2.9%, a decrease of 270 basis points compared to the
prior year.
- Operating margin for the Company's Americas Retail segment
decreased 780 basis points to negative 6.1% in fiscal 2017, from
1.7% in the prior year. Higher asset impairment charges recorded
during fiscal 2017 negatively impacted the operating margin for the
Company's Americas Retail segment by 360 basis points compared to
the prior year. Excluding the impact of the asset impairment
charges, operating margin for the Company's Americas Retail segment
decreased by 420 basis points compared to the prior year. This
decrease was driven primarily by more markdowns and the negative
impact on the fixed cost structure resulting from negative
comparable store sales.
- Operating margin for the Company's Europe segment decreased 40 basis points to
7.2% in fiscal 2017, from 7.6% in the prior year, due to lower
gross margins, partially offset by a lower SG&A rate. The lower
gross margins were driven primarily by the unfavorable impact from
currency exchange rate fluctuations, partially offset by the
favorable impact from positive comparable store sales. The lower
SG&A rate was driven by the favorable impact on the fixed cost
structure resulting from overall leveraging of expenses.
- Operating margin for the Company's Asia segment decreased 530 basis points to
negative 1.0% in fiscal 2017, from 4.3% in the prior year. The
decrease in operating margin was due to a higher SG&A rate and
lower gross margins. The higher SG&A rate was driven primarily
by higher expenses resulting from retail expansion in China and country mix. The lower gross margins
were driven by higher occupancy costs due to retail expansion in
China and the unfavorable impact
from country mix.
- Operating margin for the Company's Americas Wholesale segment
decreased 250 basis points to 15.9% in fiscal 2017, from 18.4% in
the prior year. The decrease in operating margin was due to lower
gross margins and a higher SG&A rate. The lower gross margins
were driven primarily by the unfavorable impact from currency
exchange rate fluctuations on product costs and lower initial
markups. The higher SG&A rate was due primarily to overall
deleveraging.
- Operating margin for the Company's Licensing segment decreased
20 basis points to 88.5% in fiscal 2017, from 88.7% in the prior
year.
Other net income, which primarily includes a realized gain of
$22.3 million from the sale of a
minority interest investment, was $30.9
million for fiscal year 2017, compared to $6.8 million for the prior year. The gain from
the sale of the minority interest investment has been excluded for
purposes of calculating adjusted financial measures for 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.
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
April 13, 2017 to shareholders of record at the close of
business on March 29, 2017.
Outlook
The following guidance assumes that foreign currency exchange
rates remain at prevailing rates:
The Company's expectations for the first quarter of fiscal 2018
ending April 29, 2017, are as
follows:
- Consolidated net revenues are expected to range between a
decline of 0.5% and an increase of 1.5% in U.S. dollars. Currency
headwinds are expected to negatively impact consolidated revenue
growth by approximately 2.5%. Excluding the impact of currency,
consolidated net revenues are expected to increase between 2.0% and
4.0% in constant currency.
- Operating margin is expected to be between minus 7.0% and minus
6.0% and includes roughly 30 basis points of currency
headwind.
- Diluted net loss per share is expected to be in the range of
$0.33 to $0.30. The estimated impact
on earnings per share of the currency tailwinds is approximately
$0.03.
For the fiscal year ending February 3, 2018, the Company's
expectations are as follows:
- Consolidated net revenues are expected to increase between 2.0%
and 4.0% in U.S. dollars. Currency headwinds are expected to
negatively impact consolidated revenue growth by approximately
2.0%. Excluding the impact of currency, consolidated net revenues
are expected to increase between 4.0% and 6.0% in constant
currency.
- Operating margin is expected to be between 2.2% and 3.0% and
includes roughly 40 basis points of currency headwind.
- Diluted earnings per share are expected to be in the range of
$0.28 to $0.40. The estimated impact
on earnings per share of the currency headwinds is approximately
$0.08.
The Company's fiscal year 2018 will include 53 weeks, while
fiscal 2017 included 52 weeks. The estimated fiscal year 2018
impact of the additional week is roughly $0.03 on earnings per share and 1.0% on
consolidated revenue growth.
On a segment basis, the Company expects the following ranges for
percentage changes for comparable store sales ("comps") and net
revenue in constant currency and U.S. dollars compared to the same
prior-year period:
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Outlook by
Segment1
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First Quarter of
Fiscal 2018
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Fiscal Year
2018
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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 high-teens
to
mid-teens
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down high-teens
to
mid-teens
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down LDD to
HSD
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down LDD to
HSD
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Net
Revenue
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down high-teens
to
mid-teens
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down high-teens
to
mid-teens
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down LDD to
HSD
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down LDD to
HSD
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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 MSD to
HSD
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Net
Revenue
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up high-teens to
low
twenties
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up high
twenties
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up
mid-teens
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up
high-teens
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Asia:
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Net
Revenue
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up low-teens to
mid-
teens
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up mid-teens to
high-teens
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up
mid-teens
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up mid-teens to
high-teens
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Americas
Wholesale:
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Net
Revenue
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down LSD
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down LSD
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up LSD
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up LSD
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Licensing:
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Net
Revenue
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down MSD
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__
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down MSD
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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, constant
currency financial information and free cash flow measures. For
fiscal 2017, the adjusted results exclude the impact of asset
impairment charges, a gain from the sale of a minority interest
investment, restructuring charges, a restructuring related
exit tax charge and the tax effects of these adjustments, as
well as the impact of a non-cash valuation allowance established on
certain deferred tax assets. For fiscal 2016, the adjusted results
exclude the impact of asset impairment charges and related tax
impacts incurred during fiscal 2016. These non-GAAP measures are
provided in addition to, and not as alternatives for, the Company's
reported GAAP results.
The Company has excluded these items from its adjusted financial
measures primarily because it believes that the adjusted financial
information provided is useful for investors to evaluate the
comparability of the Company's operating results and its future
outlook (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. The Company also presents adjusted free cash flows
excluding the impact of any significant purchases not in the
ordinary course of business in order to enhance the visibility of
underlying business trends. Free cash flow measures are not
intended to be alternatives to cash flows from operating activities
as a measure of liquidity, but rather to provide 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 comparable non-GAAP free cash flow measures
is provided in the accompanying tables.
Investor Conference Call
The Company will hold a conference call at 4:45 pm (ET) on March 15, 2017 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
January 28, 2017, the Company directly operated 945 retail
stores in the Americas, Europe and
Asia. The Company's licensees and
distributors operated 735 additional retail stores worldwide. As of
January 28, 2017, the Company and its licensees and
distributors operated in 101 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, business strategies and
strategic initiatives; statements expressing optimism or pessimism
about future operating results or events and projected sales
(including comparable store sales), earnings, capital expenditures,
cost savings and cash needs; and guidance for the first quarter and
full year of fiscal 2018, 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,"
"estimate," "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; unexpected or unseasonable weather conditions;
our ability to effectively operate our various retail concepts,
including securing, renewing, modifying or terminating leases for
store locations; our ability to successfully and/or timely
implement our growth strategies and other strategic initiatives;
our ability to expand internationally and operate in regions where
we have less experience, including through joint ventures; our
ability to successfully or timely implement plans for cost and
workforce reductions; our ability to attract and retain key
personnel; changes to our short or long-term strategic initiatives;
unexpected obligations arising from new or existing litigation, tax
and other regulatory proceedings; changes in U.S. tax or tariff
policy regarding apparel and other accessory merchandise produced
in other countries; adjustments to our unaudited financial
statements identified during the completion of our annual
independent audit of financial statements and financial controls or
from subsequent events arising after issuance of this release; risk
of future store asset and/or goodwill impairments or restructuring
charges; our ability to adapt to new regulatory compliance and
disclosure obligations; 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 current global economic climate and uncertainty
surrounding potential changes in U.S. policies and regulations
under the new administration may amplify many of these risks.
Additional information with respect to known and unknown risks will
also be set forth in the Company's annual report on Form 10-K for
the year ended January 28, 2017, which will be filed with the
Securities and Exchange Commission in the first quarter of fiscal
2018. 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
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(amounts in
thousands, except per share data)
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Three Months
Ended
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Twelve Months
Ended
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January 28,
2017
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January 30,
2016
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January 28,
2017
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January 30,
2016
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$
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%
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$
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%
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$
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%
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$
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%
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Product
sales
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$
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656,505
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96.6%
|
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$
|
633,344
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96.2%
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$
|
2,118,534
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95.9%
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$
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2,100,454
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95.3%
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Net
royalties
|
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22,768
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3.4%
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|
24,915
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3.8%
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|
90,834
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4.1%
|
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|
103,857
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4.7%
|
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Net
revenue
|
|
679,273
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|
100.0%
|
|
|
658,259
|
|
100.0%
|
|
|
2,209,368
|
|
100.0%
|
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|
2,204,311
|
|
100.0%
|
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Cost of product
sales
|
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442,866
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65.2%
|
|
|
418,095
|
|
63.5%
|
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|
1,464,328
|
|
66.3%
|
|
|
1,416,881
|
|
64.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
236,407
|
|
34.8%
|
|
|
240,164
|
|
36.5%
|
|
|
745,040
|
|
33.7%
|
|
|
787,430
|
|
35.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
182,493
|
|
26.9%
|
|
|
169,951
|
|
25.9%
|
|
|
681,864
|
|
30.8%
|
|
|
663,793
|
|
30.1%
|
|
Asset impairment
charges
|
|
32,928
|
|
4.8%
|
|
|
255
|
|
0.0%
|
|
|
34,385
|
|
1.6%
|
|
|
2,287
|
|
0.1%
|
|
Restructuring
charges
|
|
—
|
|
0.0%
|
|
|
—
|
|
0.0%
|
|
|
6,083
|
|
0.3%
|
|
|
—
|
|
0.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
operations
|
|
20,986
|
|
3.1%
|
|
|
69,958
|
|
10.6%
|
|
|
22,708
|
|
1.0%
|
|
|
121,350
|
|
5.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(419)
|
|
(0.1%)
|
|
|
(497)
|
|
(0.0%)
|
|
|
(1,897)
|
|
(0.1%)
|
|
|
(1,953)
|
|
(0.0%)
|
|
|
Interest
income
|
|
127
|
|
0.0%
|
|
|
261
|
|
0.0%
|
|
|
1,890
|
|
0.1%
|
|
|
1,045
|
|
0.0%
|
|
|
Other income,
net
|
|
4,492
|
|
0.7%
|
|
|
256
|
|
0.0%
|
|
|
30,909
|
|
1.4%
|
|
|
6,837
|
|
0.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before
income tax expense
|
|
25,186
|
|
3.7%
|
|
|
69,978
|
|
10.6%
|
|
|
53,610
|
|
2.4%
|
|
|
127,279
|
|
5.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
16,530
|
|
2.4%
|
|
|
20,690
|
|
3.1%
|
|
|
28,212
|
|
1.3%
|
|
|
42,464
|
|
2.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
8,656
|
|
1.3%
|
|
|
49,288
|
|
7.5%
|
|
|
25,398
|
|
1.1%
|
|
|
84,815
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to noncontrolling interests
|
|
2,089
|
|
0.3%
|
|
|
1,511
|
|
0.2%
|
|
|
2,637
|
|
0.1%
|
|
|
2,964
|
|
0.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Guess?, Inc.
|
|
$
|
6,567
|
|
1.0%
|
|
|
$
|
47,777
|
|
7.3%
|
|
|
$
|
22,761
|
|
1.0%
|
|
|
$
|
81,851
|
|
3.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings per
common share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.08
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.27
|
|
|
|
$
|
0.97
|
|
|
|
Diluted
|
|
$
|
0.08
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.27
|
|
|
|
$
|
0.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding attributable to common
stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
83,769
|
|
|
|
83,101
|
|
|
|
83,666
|
|
|
|
84,264
|
|
|
|
Diluted
|
|
83,970
|
|
|
|
83,551
|
|
|
|
83,829
|
|
|
|
84,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
65.6%
|
|
|
|
29.6%
|
|
|
|
52.6%
|
|
|
|
33.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
from operations 1:
|
|
$
|
53,914
|
|
7.9%
|
|
|
$
|
70,213
|
|
10.6%
|
|
|
$
|
63,176
|
|
2.9%
|
|
|
$
|
123,637
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
attributable to Guess?, Inc. 1:
|
|
$
|
34,574
|
|
5.1%
|
|
|
$
|
47,950
|
|
7.3%
|
|
|
$
|
37,232
|
|
1.7%
|
|
|
$
|
83,355
|
|
3.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per common share attributable to common stockholders
1:
|
|
$
|
0.41
|
|
|
|
$
|
0.57
|
|
|
|
$
|
0.44
|
|
|
|
$
|
0.98
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate 1:
|
|
36.9%
|
|
|
|
29.6%
|
|
|
|
44.5%
|
|
|
|
33.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
The adjusted results
for the three and twelve months ended January 28, 2017 reflect the
exclusion of asset impairment charges, a gain from the sale of a
minority interest investment, restructuring
charges, a restructuring related exit tax charge
and the tax impacts of these adjustments, as well as the
impact of a non-cash valuation allowance established on certain
deferred tax assets that were recorded, where applicable. The
adjusted results for the three and twelve months ended January 30,
2016 reflect the exclusion of asset impairment charges and related
tax impacts that were recorded, where applicable. 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
provides reconciliations of reported GAAP earnings from operations
to adjusted earnings from
operations, reported GAAP net earnings attributable to Guess?, Inc.
to adjusted net earnings attributable to Guess?, Inc.
and reported GAAP income tax expense to adjusted income tax expense
for the three and twelve months ended January
28, 2017 and January 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
January
28,
|
|
January
30,
|
|
January
28,
|
|
January
30,
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP
earnings from operations
|
|
$
|
20,986
|
|
|
$
|
69,958
|
|
|
$
|
22,708
|
|
|
$
|
121,350
|
|
Asset
impairment charges1
|
|
32,928
|
|
|
255
|
|
|
34,385
|
|
|
2,287
|
|
Restructuring
charges2
|
|
—
|
|
|
—
|
|
|
6,083
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings
from operations
|
|
$
|
53,914
|
|
|
$
|
70,213
|
|
|
$
|
63,176
|
|
|
$
|
123,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP net
earnings attributable to Guess?, Inc.
|
|
$
|
6,567
|
|
|
$
|
47,777
|
|
|
$
|
22,761
|
|
|
$
|
81,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairment charges1
|
|
32,928
|
|
|
255
|
|
|
34,385
|
|
|
2,287
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges2
|
|
—
|
|
|
—
|
|
|
6,083
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Gain on
sale of a minority interest investment3
|
|
—
|
|
|
—
|
|
|
(22,279)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Income
tax adjustments4
|
|
(11,751)
|
|
|
(82)
|
|
|
(12,459)
|
|
|
(783)
|
|
|
|
|
|
|
|
|
|
|
Valuation
allowance on certain deferred tax assets5
|
|
6,830
|
|
|
—
|
|
|
6,830
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Exit tax
charge6
|
|
—
|
|
|
—
|
|
|
1,911
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Total adjustments
affecting net earnings attributable to Guess?, Inc.
|
|
28,007
|
|
|
173
|
|
|
14,471
|
|
|
1,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
earnings attributable to Guess?, Inc.
|
|
$
|
34,574
|
|
|
$
|
47,950
|
|
|
$
|
37,232
|
|
|
$
|
83,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP income
tax expense
|
|
$
|
16,530
|
|
|
$
|
20,690
|
|
|
$
|
28,212
|
|
|
$
|
42,464
|
|
|
|
|
|
|
|
|
|
|
Income
tax adjustments4
|
|
11,751
|
|
|
82
|
|
|
12,459
|
|
|
783
|
|
|
|
|
|
|
|
|
|
|
Valuation
allowance on certain deferred tax assets5
|
|
(6,830)
|
|
|
—
|
|
|
(6,830)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Exit tax
charge6
|
|
—
|
|
|
—
|
|
|
(1,911)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Total income
tax effect
|
|
4,921
|
|
|
82
|
|
|
3,718
|
|
|
783
|
|
|
|
|
|
|
|
|
|
|
Adjusted income
tax expense
|
|
$
|
21,451
|
|
|
$
|
20,772
|
|
|
$
|
31,930
|
|
|
$
|
43,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective
tax rate
|
|
36.9%
|
|
|
29.6%
|
|
|
44.5%
|
|
|
33.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
1
|
During the three and
twelve months ended January 28, 2017 and January 30, 2016, the
Company recognized asset impairment charges related primarily to
the impairment of certain retail locations in North America
resulting from under-performance and expected store closures. The
results for the three and twelve months ended January 30, 2016 have
been adjusted to show the impact of the asset impairment charges
for comparative purposes to same current-year period
results.
|
|
|
2
|
During the first
quarter of fiscal 2017, the Company implemented a global cost
reduction and restructuring plan to better align its global cost
and organizational structure with its current strategic initiatives
which resulted in restructuring charges, mainly related to
cash-based severance costs, incurred during the twelve months ended
January 28, 2017. The restructuring charges were recorded during
the three months ended April 30, 2016.
|
|
|
3
|
The Company
recognized a gain related to the sale of its minority interest
equity holding in a privately-held boutique apparel company during
the twelve months ended January 28, 2017. The gain related to the
sale was recorded during the three months ended July 30,
2016.
|
|
|
4
|
The income tax effect
of the asset impairment charges and 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. The income tax effect on the gain on sale of the minority
interest investment was based on the impact of the transaction on
the effective tax rate.
|
|
|
5
|
During the fourth
quarter of fiscal 2017, the Company recorded a non-cash valuation
allowance on certain of its deferred tax assets, a portion of which
were generated from the impairments discussed above.
|
|
|
6
|
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 twelve months ended January 28, 2017. The
estimated exit tax charge was recorded during the three months
ended April 30, 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Consolidated
Segment Data
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
January
28,
|
|
January
30,
|
|
%
|
|
January
28,
|
|
January
30,
|
|
%
|
|
|
|
|
|
|
2017
|
|
2016
|
|
change
|
|
2017
|
|
2016
|
|
change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail
|
$
|
288,906
|
|
|
$
|
308,638
|
|
|
(6%)
|
|
$
|
935,479
|
|
|
$
|
981,942
|
|
|
(5%)
|
|
Europe
|
255,818
|
|
|
229,676
|
|
|
11%
|
|
791,673
|
|
|
727,144
|
|
|
9%
|
|
Asia
|
78,122
|
|
|
61,691
|
|
|
27%
|
|
250,363
|
|
|
241,571
|
|
|
4%
|
|
Americas
Wholesale
|
33,659
|
|
|
33,339
|
|
|
1%
|
|
141,019
|
|
|
149,797
|
|
|
(6%)
|
|
Licensing
|
22,768
|
|
|
24,915
|
|
|
(9%)
|
|
90,834
|
|
|
103,857
|
|
|
(13%)
|
|
|
|
|
|
|
$
|
679,273
|
|
|
$
|
658,259
|
|
|
3%
|
|
$
|
2,209,368
|
|
|
$
|
2,204,311
|
|
|
0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas Retail
before impairments
|
$
|
744
|
|
|
$
|
20,258
|
|
|
(96%)
|
|
$
|
(22,897)
|
|
|
$
|
17,795
|
|
|
(229%)
|
|
Asset
impairment charges1
|
(32,672)
|
|
|
(18)
|
|
|
|
|
(33,860)
|
|
|
(1,573)
|
|
|
|
|
Americas Retail
including impairments
|
(31,928)
|
|
|
20,240
|
|
|
(258%)
|
|
(56,757)
|
|
|
16,222
|
|
|
(450%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe before
impairments
|
40,968
|
|
|
34,977
|
|
|
17%
|
|
57,286
|
|
|
56,079
|
|
|
2%
|
|
Asset
impairment charges1
|
(29)
|
|
|
(207)
|
|
|
|
|
(242)
|
|
|
(641)
|
|
|
|
|
Europe including
impairments
|
40,939
|
|
|
34,770
|
|
|
18%
|
|
57,044
|
|
|
55,438
|
|
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia before
impairments
|
2,999
|
|
|
2,184
|
|
|
37%
|
|
(2,209)
|
|
|
10,521
|
|
|
(121%)
|
|
Asset
impairment charges1
|
(227)
|
|
|
(30)
|
|
|
|
|
(283)
|
|
|
(73)
|
|
|
|
|
Asia including
impairments
|
2,772
|
|
|
2,154
|
|
|
29%
|
|
(2,492)
|
|
|
10,448
|
|
|
(124%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Wholesale
|
5,725
|
|
|
6,323
|
|
|
(9%)
|
|
22,489
|
|
|
27,525
|
|
|
(18%)
|
|
Licensing
|
20,076
|
|
|
21,890
|
|
|
(8%)
|
|
80,365
|
|
|
92,172
|
|
|
(13%)
|
|
Corporate
Overhead
|
(16,598)
|
|
|
(15,419)
|
|
|
8%
|
|
(71,858)
|
|
|
(80,455)
|
|
|
(11%)
|
|
Restructuring
Charges
|
—
|
|
|
—
|
|
|
|
|
(6,083)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
$
|
20,986
|
|
|
$
|
69,958
|
|
|
(70%)
|
|
$
|
22,708
|
|
|
$
|
121,350
|
|
|
(81%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas Retail
including impairments
|
(11.1%)
|
|
|
6.6%
|
|
|
|
|
(6.1%)
|
|
|
1.7%
|
|
|
|
|
Americas Retail
before impairments
|
0.3%
|
|
|
6.6%
|
|
|
|
|
(2.4%)
|
|
|
1.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe including
impairments
|
16.0%
|
|
|
15.1%
|
|
|
|
|
7.2%
|
|
|
7.6%
|
|
|
|
|
Europe before
impairments
|
16.0%
|
|
|
15.2%
|
|
|
|
|
7.2%
|
|
|
7.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia including
impairments
|
3.5%
|
|
|
3.5%
|
|
|
|
|
(1.0%)
|
|
|
4.3%
|
|
|
|
|
Asia before
impairments
|
3.8%
|
|
|
3.5%
|
|
|
|
|
(0.9%)
|
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Wholesale
|
17.0%
|
|
|
19.0%
|
|
|
|
|
15.9%
|
|
|
18.4%
|
|
|
|
|
Licensing
|
88.2%
|
|
|
87.9%
|
|
|
|
|
88.5%
|
|
|
88.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company
including impairment and restructuring charges
|
3.1%
|
|
|
10.6%
|
|
|
|
|
1.0%
|
|
|
5.5%
|
|
|
|
|
Total Company before
impairment and restructuring charges
|
7.9%
|
|
|
10.6%
|
|
|
|
|
2.9%
|
|
|
5.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
During the three and
twelve months ended January 28, 2017 and January 30, 2016, the
Company recognized asset impairment charges related primarily to
the impairment of certain retail locations in North America
resulting from under-performance and expected store closures. The
results for the three and twelve months ended January 30, 2016 have
been adjusted to show the impact of the asset impairment charges
for comparative purposes to same current-year period
results.
|
|
Guess?, Inc. and
Subsidiaries
|
Constant Currency
Financial Measures
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
January 28,
2017
|
|
January 30,
2016
|
|
%
change
|
|
As
Reported
|
|
Foreign
Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail
|
$
|
288,906
|
|
|
$
|
421
|
|
|
$
|
289,327
|
|
|
$
|
308,638
|
|
|
(6%)
|
|
(6%)
|
|
Europe
|
255,818
|
|
|
4,955
|
|
|
260,773
|
|
|
229,676
|
|
|
11%
|
|
14%
|
|
Asia
|
78,122
|
|
|
752
|
|
|
78,874
|
|
|
61,691
|
|
|
27%
|
|
28%
|
|
Americas
Wholesale
|
33,659
|
|
|
907
|
|
|
34,566
|
|
|
33,339
|
|
|
1%
|
|
4%
|
|
Licensing
|
22,768
|
|
|
—
|
|
|
22,768
|
|
|
24,915
|
|
|
(9%)
|
|
(9%)
|
|
|
|
|
|
|
$
|
679,273
|
|
|
$
|
7,035
|
|
|
$
|
686,308
|
|
|
$
|
658,259
|
|
|
3%
|
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
January 28,
2017
|
|
January 30,
2016
|
|
%
change
|
|
As
Reported
|
|
Foreign
Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
Retail
|
$
|
935,479
|
|
|
$
|
6,422
|
|
|
$
|
941,901
|
|
|
$
|
981,942
|
|
|
(5%)
|
|
(4%)
|
|
Europe
|
791,673
|
|
|
2,436
|
|
|
794,109
|
|
|
727,144
|
|
|
9%
|
|
9%
|
|
Asia
|
250,363
|
|
|
3,096
|
|
|
253,459
|
|
|
241,571
|
|
|
4%
|
|
5%
|
|
Americas
Wholesale
|
141,019
|
|
|
5,203
|
|
|
146,222
|
|
|
149,797
|
|
|
(6%)
|
|
(2%)
|
|
Licensing
|
90,834
|
|
|
—
|
|
|
90,834
|
|
|
103,857
|
|
|
(13%)
|
|
(13%)
|
|
|
|
|
|
|
$
|
2,209,368
|
|
|
$
|
17,157
|
|
|
$
|
2,226,525
|
|
|
$
|
2,204,311
|
|
|
0%
|
|
1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Selected Condensed
Consolidated Balance Sheet Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
28,
|
|
January
30,
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
396,129
|
|
|
$
|
445,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables,
net
|
225,537
|
|
|
222,359
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
367,381
|
|
|
311,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
assets
|
54,965
|
|
|
56,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
243,005
|
|
|
255,344
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
247,468
|
|
|
247,152
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
1,534,485
|
|
|
$
|
1,538,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
borrowings and capital lease obligations
|
$
|
566
|
|
|
$
|
4,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
344,887
|
|
|
323,035
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term
debt
|
23,482
|
|
|
2,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
180,104
|
|
|
172,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable and
nonredeemable noncontrolling interests
|
16,224
|
|
|
18,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc.
stockholders' equity
|
969,222
|
|
|
1,018,475
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
1,534,485
|
|
|
$
|
1,538,748
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Condensed
Consolidated Cash Flow Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
January
28,
|
|
January
30,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
$
|
71,456
|
|
|
$
|
179,429
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(49,993)
|
|
|
(73,745)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
|
(68,750)
|
|
|
(127,740)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
|
(2,064)
|
|
|
(15,947)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
|
(49,351)
|
|
|
(38,003)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
|
445,480
|
|
|
483,483
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the year
|
|
|
$
|
396,129
|
|
|
$
|
445,480
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
$
|
69,319
|
|
|
$
|
70,684
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent
|
|
|
$
|
263,126
|
|
|
$
|
259,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Reconciliation of
Net Cash Provided by Operating Activities to Adjusted Free Cash
Flow
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
January
28,
|
|
January
30,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
$
|
71,456
|
|
|
$
|
179,429
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Purchases of
property and equipment
|
|
|
(90,581)
|
|
|
(83,844)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
(19,125)
|
|
|
95,585
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Purchase of U.S.
distribution facility
|
—
|
|
|
28,773
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted free cash
flow
|
|
|
$
|
(19,125)
|
|
|
$
|
124,358
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Data
|
International
Store Count
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of
January 28, 2017
|
|
As of
January 30, 2016
|
|
|
|
|
Total
|
|
Directly
Operated
|
|
Total
|
|
Directly
Operated
|
Region
|
Stores
|
|
Stores
|
|
Stores
|
|
Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
341
|
|
339
|
|
343
|
|
342
|
|
|
|
|
|
|
|
|
|
|
|
|
Canada
|
111
|
|
111
|
|
113
|
|
113
|
|
|
|
|
|
|
|
|
|
|
|
|
Central and South
America
|
95
|
|
51
|
|
99
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Americas
|
547
|
|
501
|
|
555
|
|
501
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe and the Middle
East
|
629
|
|
336
|
|
594
|
|
280
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
504
|
|
108
|
|
490
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,680
|
|
945
|
|
1,639
|
|
835
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Directly Operated
Retail Store Data
|
U.S. and
Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
January
28,
|
|
January
30,
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores at
the beginning of the year
|
455
|
|
481
|
|
|
|
|
|
|
|
|
|
|
|
Store
openings
|
|
|
19
|
|
12
|
|
|
|
|
|
|
|
|
|
|
|
Store
closures
|
|
|
(24)
|
|
(38)
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores at
the end of the year
|
450
|
|
455
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total store square
footage at the end of the year
|
2,198,000
|
|
2,211,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Americas Retail
Net Revenue
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
January
28,
|
|
January
30,
|
|
%
|
|
January
28,
|
|
January
30,
|
|
%
|
|
2017
|
|
2016
|
|
change
|
|
2017
|
|
2016
|
|
change
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
stores
|
$
|
256,292
|
|
|
$
|
275,687
|
|
|
(7.0%)
|
|
|
$
|
843,084
|
|
|
$
|
892,414
|
|
|
(5.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce
sites
|
32,614
|
|
|
32,951
|
|
|
(1.0%)
|
|
|
92,395
|
|
|
89,528
|
|
|
3.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
288,906
|
|
|
$
|
308,638
|
|
|
(6.4%)
|
|
|
$
|
935,479
|
|
|
$
|
981,942
|
|
|
(4.7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Change in Comparable Store Sales
|
U.S. and
Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
January 28,
2017
|
|
January 28,
2017
|
|
U.S.
Dollars
|
|
Constant
Currency
|
|
U.S.
Dollars
|
|
Constant
Currency
|
|
|
|
|
|
|
|
|
Excluding e-commerce
sales
|
(7.8%)
|
|
(8.1%)
|
|
(5.7%)
|
|
(5.4%)
|
|
|
|
|
|
|
|
|
Impact of e-commerce
sales
|
0.8%
|
|
0.7%
|
|
0.8%
|
|
0.9%
|
|
|
|
|
|
|
|
|
Including e-commerce
sales
|
(7.0%)
|
|
(7.4%)
|
|
(4.9%)
|
|
(4.5%)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/guess-inc-reports-fourth-quarter-results-300424241.html
SOURCE Guess?, Inc.