US' Guess projects modest growth for FY26 amid low FY25 profits

For FY26, the company forecasts net revenue to increase between 3.9 per cent and 6.2 per cent YoY. The GAAP operating margin is expected to improve in FY26 between 4.3 per cent and 5.2 per cent. GAAP diluted EPS is expected to increase between $1.03 and $1.37 for FY26. The adjusted operating margin is expected to rise between 4.5 per cent and 5.4 per cent. GAAP full-year earnings from operations are estimated between $133 million and $165 million, and adjusted earnings from operations between $140 million and $172 million. The adjusted diluted EPS to range from $1.32 to $1.76 for FY26.

Guess total net revenue in fiscal 2025 (FY25) increased 8 per cent YoY to $3 billion, from $2.78 billion in FY24. In constant currency, net revenue increased by 10 per cent. GAAP diluted EPS decreased 75 per cent to $0.77 in FY25, compared to $3.09 during FY24.

In FY25, the company recorded adjusted net earnings of $104.5 million, a 40 per cent YoY decrease. The adjusted diluted EPS decreased 38 per cent to $1.96. The GAAP earnings from operations for FY25 decreased 34.0 per cent to $173.8 million (including a gain of $13.8 million on the sale of the US distribution centre during the second quarter (Q2) of FY25 and a $15.7 million unfavourable currency translation impact), from $263.3 million in FY24.

Region-wise, Europe revenues increased 4 per cent in US dollars and 7 per cent in constant currency. Retail comparable sales (including e-commerce) increased 3 per cent in US dollars and 6 per cent in constant currency. The inclusion of its e-commerce sales positively impacted the retail comparable sales percentage by 1 per cent in US dollars and a minimal amount in constant currency.

Americas retail revenues increased 6 per cent in US dollars and 7 per cent in constant currency. Retail comparable sales (including e-commerce) decreased 12 per cent in US dollars and 11 per cent in constant currency. Americas wholesale revenues increased 63 per cent in US dollars and 65 per cent in constant currency.

Asia revenues decreased 5 per cent in US dollars and 2 per cent in constant currency. Retail comparable sales (including e-commerce) decreased 14 per cent in US dollars and 11 per cent in constant currency. The inclusion of its e-commerce sales negatively impacted the retail comparable sales percentage by 1 per cent in both US dollars and constant currency.

The total net revenue of the company in the fourth quarter (Q4) of FY25 increased 5 per cent YoY to $932.3 million, and in constant currency, net revenue increased by 9 per cent. The adjusted net earnings were $77.7 million, a 30 per cent decrease for the same prior-fiscal quarter. Adjusted diluted EPS decreased 26 per cent to $1.48. The company in this quarter also recorded GAAP net earnings of $81.4 million, a 29 per cent YoY decrease. GAAP diluted net EPS decreased 32 per cent to $1.16.

Fibre2Fashion News Desk (SG)