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Guess? Asian revenues rise 19% Q4 FY'13

21 Mar '13
6 min read

Net revenue from the Company's Asia segment increased 19.2% to $84.2 million in the fourth quarter of fiscal 2013, from $70.6 million in the prior-year period.  In constant dollars, net revenue increased 14.3%.

Net revenue from the Company's North American Wholesale segment increased 25.7% to $50.9 million in the fourth quarter of fiscal 2013, compared to $40.5 million in the prior-year period. In constant dollars, net revenue increased 24.1%.

Licensing segment net revenue decreased 2.1% to $29.8 million in the fourth quarter of fiscal 2013, from $30.4 million in the prior-year period.

Operating earnings for the fourth quarter of fiscal 2013 decreased 11.7% to $120.0 million (including a $1.7 million favorable currency translation impact) from operating earnings of $135.8 million in the prior-year period.  Operating margin in the fourth quarter declined 280 basis points to 14.7%, compared to operating margin of 17.5% in the prior-year quarter. 

The lower operating margin primarily reflects the impact of negative same store sales on the Company's fixed cost structure, higher occupancy and selling costs in Europe due to retail expansion and more retail markdowns in Europe and North America.   

Other net expense, which primarily includes net unrealized mark-to-market losses on foreign currency contracts and balances, partially offset by net unrealized gains on non-operating assets, was $0.1 million for the fourth quarter of fiscal 2013, compared to income of $6.4 million in the prior-year quarter.

The Company's fourth quarter fiscal 2013 adjusted tax rate increased slightly to 31.1%, compared to 30.9% for the fourth quarter of the prior year.  On a GAAP basis, the fourth quarter fiscal 2013 tax rate was 38.4%. 

Fiscal Year 2013 Results

Adjusted net earnings for the fiscal year ended February 2, 2013 were $187.5 million, a decrease of 33.8% compared to adjusted net earnings of $283.1 million for the fiscal year ended January 28, 2012.  The fiscal year 2013 adjusted net earnings exclude a charge of $12.8 million related to the resolution of a tax audit dispute in Italy, partially offset by unrelated tax benefits of $4.0 million. 

The prior year adjusted net earnings excluded a settlement charge of $19.5 million ($17.6 million net of the related tax impact) associated with the settlement of the Company's relationship with one of its former European service providers.  Adjusted diluted earnings per share declined 29.5% to $2.15 per share in the fiscal year 2013 compared to adjusted diluted earnings per share of $3.05 in the prior year. 

On a GAAP basis, net earnings for the fiscal year ended February 2, 2013 were $178.7 million and diluted earnings per share, including an unfavorable $0.10 impact from the net tax settlement charge, totaled $2.05.

Total net revenue for fiscal year 2013 was down 1.1% at $2.66 billion for the fiscal year 2013, compared to $2.69 billion in the prior year.  In constant dollars, total net revenue increased 1.6%. In addition, the Company's fiscal year 2013 results included 53 weeks, while fiscal 2012 results included 52 weeks.

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