Guess Q3 earnings surge despite Americas, Asia sales weight

By

Benjamin Fitzgerald

Published
Nov 22, 2023

Guess Inc. announced on Tuesday net revenue for the third quarter rose 3% to $651.2 million, with an increase in Europe, offsetting a decline in the fashion firm's Americas division and flat sales in Asia.

The Los Angeles-based Guess said Europe revenues increased 5% in constant currency, with retail comparable sales including e-commerce up 7% in constant currency, while Asia revenues were flat in constant currency, hurt by a 9% decline in constant currency.  Guess's Americas retail revenues fell 8% in constant currency, with retail comparable sales down 5%, and wholesale revenues decreased 1% in constant currency.

Licensing revenues increased 19% in constant currency.

Despite the fluctuating sales result, Guess recorded net earnings of $55.7 million, a 155% increase from $21.8 million for the same prior-year quarter

"We are pleased with our third quarter financial results, which were in line with our guidance for revenue growth and at the high end of our expectations for operating profit performance. During the period, we managed the business well and delivered strong gross margin and effective cost performance, which resulted in GAAP and adjusted operating margins of 8.4% and 8.9%, respectively, ahead of our expectations for the quarter," ​said Carlos Alberini, chief executive officer.

"Overall, a strong licensing business combined with a disciplined approach to cost management offset softness in some of our direct-to-consumer businesses and drove earnings from operations for the company that were flat to last year’s performance.”