Guess annual sales lift on strong Europe gains, the Americas weighs

By

Benjamin Fitzgerald

Published
Mar 15, 2023

Guess Inc. announced on Tuesday revenues for the fiscal 2023 increased 4% to $2.69 billion, upheld by sales gains in the fashion brand's European and Asian markets, offsetting sluggish growth in the Americas.

The Los Angeles-based company said fiscal 2023 revenues in its Americas retail remained consistent in U.S. dollars and increased 1% in constant currency. Retail comp sales, including e-commerce, decreased 1% in both U.S. dollars and constant currency. Americas wholesale revenues increased 2% in U.S. dollars and 3% in constant currency.

Elsewhere, Europe revenues increased 6% in U.S. dollars and 21% in constant currency, while Asia revenues increased 1% in U.S. dollars and 12% in constant currency.

For the fourth quarter ending January 28, Guess reported revenues of $817.8 million, ​​up 2%. Americas retail revenues decreased 1% in both U.S. dollars and constant currency, while its Americas wholesale revenues decreased 27% in both U.S. dollars and constant currency.

Europe revenues increased 10% in U.S. dollars and 20% in constant currency and Asia revenues decreased 8% in U.S. dollars and increased 1% in constant currency. Licensing revenues decreased 8% in U.S. dollars and constant currency, added the company.

“We are very pleased with our fourth quarter performance, which exceeded our expectations. Our revenue growth in the period reached 2% in US dollars and 8% in constant currency, driven by strong results in Europe. This performance contributed to better than expected adjusted operating profit and improved earnings per share," ​said Carlos Alberini, chief executive officer, Guess Inc.

"This performance caps a strong year for our company despite the challenging market conditions we faced. In fact, this year currency fluctuations consumed $62 million of operating profit and 140 basis points of operating margin. We delivered top line growth of 4% in US dollars and 12% in constant currency and achieved GAAP and adjusted operating margins of 9.2% and 9.8%, respectively. We are very proud of our teams, who managed the business well and navigated through a difficult environment very effectively.”

Looking ahead, Guess said it expects fiscal 2024 revenues to increase between 1% and 3%.