Guess annual sales lift despite downturn in U.S. ops

Guess Inc. announced on Wednesday said revenues grew 9% to $891.1 million for the fourth quarter, with the U.S. fashion firm clocking a single-digit uptick in sales for the full-year.

The Los Angeles-based firm said Europe revenues increased 9% in U.S. dollars, while Asis revenues surged 18% for the quarter ending February 3. In the U.S., retail revenues increased 1%, hurt by retail comparable sales (including e-commerce), which decreased 1%. Meanwhile, U.S. wholesale revenues surged 44%, and licensing revenues increased 15%.

For the fiscal year, total revenues rose 3% to $2.78 billion on growth across Europe, up 7%, and Asia up 16%, partially upset by declines across U.S. retail and wholesale revenues.

“We are very pleased with our fourth quarter results, which exceeded our expectations for revenues, operating earnings and earnings per share, and capped an outstanding year for our Company,” said ​Carlos Alberini, chief executive officer, Guess Inc.

“We grew revenues by 9% for the quarter and 3% for the year. We grew GAAP earnings per share by 40% to $3.09 and adjusted earnings per share by 15% to $3.14. Our disciplined approach in managing the business enabled us to deliver $330 million of operating cash flow and $248 million of free cash flow and end the year with a cash position of $360 million, well ahead of our expectations. As a result of this strong performance, we are pleased to share that our board has declared a special dividend of $2.25 per share to be paid in May, in line with our commitment to return capital directly to shareholders.”

Last month, Guess and global brand management firm WHP Global announced a definitive agreement to acquire New York-based fashion brand Rag & Bone.

“Looking forward, we are excited about our plans for the new fiscal year. We believe we are at an inflection point, and we expect to exceed $3 billion in revenues for the first time in our company’s history with a solid growth plan for our core business, the integration of Rag & Bone into our portfolio and the launch of Guess Jeans to capture the demand from Generation Z consumers,” concluded Albertini.

“Our business model is strong and highly diversified, we have great products that are resonating well with our customers, we are well positioned with a strong capital structure and have a great team very capable and ready to execute on our ambitions.”