Interviews
News Flash
Guess? Inc faces economic headwinds in Southern Europe
23 May '12
5 min read
• Net revenue from the Company's Europe segment decreased 9.7% to $189.8 million in the first quarter of fiscal 2013, compared to $210.2 million in the prior-year period. In local currency, net revenue decreased 4.6%.
• Net revenue from the Company's Asia segment increased 7.9% to $64.8 million in the first quarter of fiscal 2013, from $60.1 million in the prior-year period.
• Net revenue from the Company's North American Wholesale segment decreased 3.8% to $43.9 million in the first quarter of fiscal 2013, from $45.6 million in the prior-year period.
• Licensing segment net revenue increased to $28.9 million in the first quarter of fiscal 2013, from $28.8 million in the prior-year period.
Operating earnings for the first quarter of fiscal 2013 declined 44.8% to $39.1 million (including a $0.9 million unfavorable currency translation impact) from $70.9 million in the prior-year period. Operating margin in the first quarter declined 520 basis points to 6.8%, compared to the prior-year quarter.
The lower operating margin primarily reflects the impact of higher professional fees, higher selling and distribution expenses and increased investments in advertising and marketing, along with the impact of negative same stores sales on the Company's fixed cost structure. Product margins increased slightly compared to the prior-year quarter, reflecting markdown improvements in North American Retail, along with the greater mix of retail business in Asia.
Other net income, which primarily relates to net unrealized revaluation gains on non-operating assets, partially offset by net unrealized mark-to-market losses on foreign currency contracts and balances, was $0.6 million for the first quarter of fiscal 2013. This compares to other net expense of $10.0 million for the first quarter of fiscal 2012.
The Company's effective tax rate was 32.0% for the first quarter of fiscal 2013, compared to 29.5% for the first quarter of the prior-year.
Outlook
The Company updated its outlook for the fiscal year ending February 2, 2013, which is now as follows:
• Consolidated net revenues are expected to range from $2.70 billion to $2.74 billion.
• Operating margin is expected to be between 12.5% and 13.0%.
• Diluted earnings per share are expected to be in the range of $2.50 to $2.65.
The Company's expectations for the second quarter of fiscal 2013 ending July 28, 2012, are as follows:
• Consolidated net revenues are expected to range from $625 million to $635 million.
• Operating margin is expected to be between 10.0% and 10.5%.
• Diluted earnings per share are expected to be in the range of $0.48 to $0.52.
The Company's fiscal year 2013 will include 53 weeks, while fiscal 2012 included 52 weeks. The Company's outlook for fiscal 2013 assumes that currently prevailing exchange rates will continue throughout the year.
Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, footwear and other related consumer products.
• Net revenue from the Company's Asia segment increased 7.9% to $64.8 million in the first quarter of fiscal 2013, from $60.1 million in the prior-year period.
• Net revenue from the Company's North American Wholesale segment decreased 3.8% to $43.9 million in the first quarter of fiscal 2013, from $45.6 million in the prior-year period.
• Licensing segment net revenue increased to $28.9 million in the first quarter of fiscal 2013, from $28.8 million in the prior-year period.
Operating earnings for the first quarter of fiscal 2013 declined 44.8% to $39.1 million (including a $0.9 million unfavorable currency translation impact) from $70.9 million in the prior-year period. Operating margin in the first quarter declined 520 basis points to 6.8%, compared to the prior-year quarter.
The lower operating margin primarily reflects the impact of higher professional fees, higher selling and distribution expenses and increased investments in advertising and marketing, along with the impact of negative same stores sales on the Company's fixed cost structure. Product margins increased slightly compared to the prior-year quarter, reflecting markdown improvements in North American Retail, along with the greater mix of retail business in Asia.
Other net income, which primarily relates to net unrealized revaluation gains on non-operating assets, partially offset by net unrealized mark-to-market losses on foreign currency contracts and balances, was $0.6 million for the first quarter of fiscal 2013. This compares to other net expense of $10.0 million for the first quarter of fiscal 2012.
The Company's effective tax rate was 32.0% for the first quarter of fiscal 2013, compared to 29.5% for the first quarter of the prior-year.
Outlook
The Company updated its outlook for the fiscal year ending February 2, 2013, which is now as follows:
• Consolidated net revenues are expected to range from $2.70 billion to $2.74 billion.
• Operating margin is expected to be between 12.5% and 13.0%.
• Diluted earnings per share are expected to be in the range of $2.50 to $2.65.
The Company's expectations for the second quarter of fiscal 2013 ending July 28, 2012, are as follows:
• Consolidated net revenues are expected to range from $625 million to $635 million.
• Operating margin is expected to be between 10.0% and 10.5%.
• Diluted earnings per share are expected to be in the range of $0.48 to $0.52.
The Company's fiscal year 2013 will include 53 weeks, while fiscal 2012 included 52 weeks. The Company's outlook for fiscal 2013 assumes that currently prevailing exchange rates will continue throughout the year.
Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, footwear and other related consumer products.
Guess? Inc
Popular News
Leave your Comments
Editor’s Pick
Folker Stachetzki
Brother Internationale Industriemaschinen GmbH
Sharif Tarequr Rahman
Rashni Poly Fiber Industries Ltd.
Esteemed Clients
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
