Guess Q1 revenues beat expectations, but losses widen

American brand Guess has reported its financials for the first quarter of fiscal year 2025, during which its revenues and earning per share “exceeded” expectations, according to CEO Carlos Alberini.

In a release, Alberini said the strong results in these areas were driven by a “remarkable performance” in the Licensing and Americas wholesale businesses, where for both revenues rose 21 percent in US dollars.

This offset a 7 percent decrease in comparable retail sales for the Americas, while revenues remained flat for the sector in both US dollars and constant currency.

In Europe, revenues rose 1 percent in US dollars, while in Asia they increased by 3 percent despite a drop of 9 percent in retail comparable sales.

The company’s total revenue for the quarter increased 4 percent to 591.9 million dollars, with constant currency net revenue rising 7 percent.

In contrast, Guess reported a GAAP loss from operations of 19.9 million dollars, up from the prior 0.9 million dollars in the same period of the year prior.

Its operating margin, meanwhile, decreased 3.2 percent to negative 3.4 percent, a drop that was driven by higher expenses and the unfavourable impact of currency.

Looking ahead, the company’s outlook is more positive, with it anticipating consolidated net revenue in US dollars for the full fiscal year to increase between 10.7 and 12.7 percent, while it forecasts its GAAP operating margin to come between 7.3 and 8.1 percent.

Alberini commented: “As we look into the rest of the year, we continue to expect strong revenue growth and solid margin performance.

“Today we are providing an outlook that is consistent with our previous guidance for the year to exceed three billing dollars in revenues for the first time in our company’s history. We have an ambitious agenda this year that includes working with the rag & bone [acquired by Guess earlier this year, ed.] team and the launch of Guess Jeans. We are excited about our momentum.”