GUESS? brands enjoy outstanding momentum worldwide
Guess? Inc reported financial results for the fourth quarter and fiscal year ended January 30, 2010.
Fourth Quarter Fiscal 2010 Results
For the fourth quarter of fiscal 2010, the Company reported net earnings of $86.6 million, an increase of 80.7% compared to net earnings of $47.9 million for the quarter ended January 31, 2009. Diluted earnings per share increased 82.4% to $0.93 in the current quarter versus $0.51 in the prior-year quarter. In the quarter, the Company recorded a $4.3 million non-cash asset impairment charge (compared to $22.3 million in the prior year fourth quarter) related to long-lived assets associated with retail stores, primarily in North America. Excluding the impairment charges, the Company's adjusted net earnings were $89.3 million in the current fourth quarter, an increase of 44.0% compared to adjusted net earnings of $62.0 million for the quarter ended January 31, 2009. Adjusted diluted earnings per share increased 45.5% to $0.96 from $0.66 in the comparable period last year.
Paul Marciano, Chief Executive Officer, commented, "Today, our brands enjoy outstanding momentum worldwide and a very strong competitive position. We believe our reported results clearly validate the relevance of our brands and our success. We remain focused on our long-term strategies and we continue to see tremendous opportunities to increase sales productivity and expand further across the globe. This year, we will reignite our plans for growth and invest in retail expansion, both in North America and Europe. We will also continue building our infrastructure and resume investing in marketing programs to further increase consumer awareness of our brands."
Mr. Marciano continued, "Our performance in the fourth quarter exceeded our expectations in almost every measure, with each business posting strong top line growth and solid margin improvements. We delivered great product that resonated well with our customers and drove a double-digit revenue increase. We managed the business well and controlled our costs and our inventories effectively. These results set a new record and closed a strong year for Guess?, in spite of the many challenges posed by a difficult economic environment. This was a year in which we expanded our international business, improved the profitability of our new businesses, fully restored our operating margin structure and generated strong cash flows."
Mr. Marciano concluded, "We are pleased with our record results this past year and we are very excited about our future. Our strategy remains intact. We have a strong portfolio of lifestyle brands with significant momentum worldwide. We have a highly diversified business model that produces outstanding results. Our capital structure has never been more solid, with more than half a billion dollars in cash and no debt. And we have a highly motivated and seasoned management team, capable of delivering in both prosperous and challenging times. This is a powerful combination that positions us well to achieve our objectives for growth and profitability."