For the third quarter, Guess recorded a GAAP net loss of 23.4 million dollars and GAAP diluted net loss per share of 47 cents. Adjusted net earnings were 17.7 million dollars, down 35 percent, while adjusted diluted EPS decreased 31 percent to 34 cents.
Net revenue for the quarter increased 13 percent to 738.5 million dollars. In constant currency, net revenue increased by 14 percent.
“We believe that the current consumer sentiment and slow customer traffic in North America and Asia will persist during the fourth quarter, impacting our business negatively. As a result, for the full year we now expect revenues at or slightly below 3 billion dollars,” Carlos Alberini, Guess chief executive officer in a statement.
Highlights of Guess Q3 results
The company’s Europe revenues increased 7 percent in US dollars and 6 percent in constant currency and retail comparable sales including e-commerce increased 8 percent in US dollars and 7 percent in constant currency.
Americas retail revenues increased 12 percent in US dollars and 14 percent in constant currency. Retail comparable sales including e-commerce decreased 14 percent in US dollars and 12 percent in constant currency. Americas Wholesale revenues increased 79 percent in US dollars and 83 percent in constant currency.
Asia revenues increased 2 percent in both US dollars and constant currency. Retail comparable sales including e-commerce decreased 17 percent in US dollars and 16 percent in constant currency.
Licensing revenues remained flat in both US dollars and constant currency.
Review of nine-month results at Guess
For the nine months, the company recorded a GAAP net loss of 21 million dollars and GAAP diluted net loss per share of 42 cents. Adjusted net earnings for the period of 26.8 million dollars, decreased by 58 percent and adjusted diluted EPS decreased 57 percent to 49 cents.
Net revenue for the nine months increased 9 percent to 2.06 billion dollars and in constant currency, net revenue increased by 11 percent.
The company said Europe revenues increased 4 percent in US dollars and 7 percent in constant currency with retail comparable sales including e-commerce increasing by 4 percent in US dollars and 6 percent in constant currency.
America’s retail revenues increased 7 percent in US dollars and 8 percent in constant currency. Retail comparable sales including e-commerce decreased 11 percent in US dollars and 10 percent in constant currency. Americas wholesale revenues increased 63 percent in US dollars and 64 percent in constant currency.
Asia revenues decreased 1 percent in US dollars and increased 2 percent in constant currency. Retail comparable sales including e-commerce decreased 13 percent in US dollars and 11 percent in constant currency.
Licensing revenues increased 7 percent in both US dollars and constant currency.
Guess forecasts FY25 revenues and earnings expectations
For fiscal year 2025, Guess expects revenues in US dollars to increase between 7.1 percent and 8.1 percent, GAAP diluted EPS to range between 70 to 80 cents and adjusted diluted EPS in the range of 1.85 to 2 dollars, below analysts’ expectation of 2.50 dollars.
For the fourth quarter, the company forecasts revenues in US dollars to increase between 2.2 percent and 5.4 percent, GAAP diluted EPS between 1.10 dollars to 1.22 dollars and adjusted diluted EPS in the range of 1.37 dollars to 1.52 dollars.