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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) February 12, 2007
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GUESS?, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 1-11893 95-3679695
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1444 S. Alameda Street,
Los Angeles, California 90021
(Address of principal executive offices) (Zip Code)
(213) 765-3100
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
Guess?, Inc. (the "Company") issued a press release on February 14, 2007,
announcing the Company's financial results for the quarter and year ended
December 31, 2006. A copy of the press release is furnished herewith as Exhibit
99.1.
The information in this Item 2.02 is being furnished under Item 2.02 and shall
not be deemed to be "filed" for the purposes of Section 18 of the Securities
Exchange Act of 1934 (the "Exchange Act"), or otherwise subject to the
liabilities of such section, nor shall such information be deemed incorporated
by reference in any filing under the Securities Act of 1933 or the Exchange Act,
except as shall be expressly set forth by specific reference in such a filing.
ITEM 8.01 OTHER EVENTS.
On February 12, 2007, the Board of Directors of the Company approved (i) a
2-for-1 stock split to be effected in the form of a 100% stock dividend and (ii)
the initiation of a quarterly cash dividend of $0.12 per share on the Company's
common stock (the "Common Stock"). Each shareholder of record at the close of
business on February 26, 2007 will be issued one additional share of Common
Stock for every share of Common Stock owned as of that time. The additional
shares will be distributed on or about March 12, 2007. The cash dividend is
payable on March 12, 2007 to shareholders of record as of the close of business
on February 26, 2007 and will be paid on a pre-split basis. A copy of the press
release announcing the stock split and cash dividend is filed herewith as
Exhibit 99.2.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) EXHIBITS.
99.1 Press release of Guess?, Inc. dated February 14, 2007 (financial
results for the quarter and year ended December 31, 2006)
99.2 Press release of Guess?, Inc. dated February 14, 2007 (stock split
and quarterly cash dividend)
-2-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: February 14, 2007 GUESS?, INC.
/s/ Carlos Alberini
-------------------------------------
Carlos Alberini
President and Chief Operating Officer
-3-
EXHIBIT INDEX
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Exhibit No. Description
- ----------- -------------------------------------------------------------------
99.1 Press release of Guess?, Inc. dated February 14, 2007 (financial
results for the quarter and year ended December 31, 2006)
99.2 Press release of Guess?, Inc. dated February 14, 2007 (stock split
and quarterly cash dividend)
-4-
Exhibit 99.1
GUESS?, INC. REPORTS RECORD RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 2006
- RAISES FISCAL YEAR 2008 GUIDANCE
Fourth Quarter EPS Increased by 74%, to $0.99 Versus $0.57 Last Year
Full Year 2006 EPS Increased by 105%, to $2.68 Versus $1.31 Last Year
Company Raises EPS Guidance for Current Fiscal Year to $3.30 to $3.40
Fourth Quarter Highlights
- Revenues grew 25% to $346.4 million
- Operating margin improved 480 basis points to 20.5%
- Net earnings grew 77% to $45.7 million
2006 Highlights
- Revenues grew 27% to $1.19 billion
- Operating margin improved 540 basis points to 16.3%
- Net earnings grew 109% to $123.2 million
LOS ANGELES, Feb. 14 /PRNewswire-FirstCall/ -- Guess?, Inc. (NYSE: GES)
today reported financial results for the fourth quarter and full year ended
December 31, 2006.
Fourth Quarter 2006 Results
For the fourth quarter of 2006, the Company reported record revenues and
record net earnings of $45.7 million, an increase of 77.1% compared to net
earnings of $25.8 million for the quarter ended December 31, 2005. Diluted
earnings per share increased 73.7% to $0.99 per share in the current quarter
versus $0.57 per share in the fourth quarter of last year.
Paul Marciano, Chief Executive Officer, commented, "The globalization of the
Guess? brand is in full drive and delivering strong financial results. I am very
pleased with our outstanding performance in the fourth quarter, which
represented our 14th consecutive quarter of earnings growth. We drove
double-digit top line growth in each of our businesses with Europe and licensing
posting the largest increases. Our wholesale business showed outstanding growth
this period and our retail stores generated double-digit same store sales
increases. All businesses contributed significantly to the earnings growth
across all regions of the world and generated strong operating margins in the
period.
"Our 2006 results mark our second straight year where net income doubled
from the year-ago level. This performance places 2006 as Guess?'s best year
ever, with record revenues and record earnings. All our business segments
operated with double-digit operating margins and provided tremendous balance to
our well-diversified business model.
"We have a unique business format in our market. As we look ahead, we
continue to see the globalization of our brand as our main focus in 2007 and
beyond. In North America, we plan to continue our retail development of all our
retail formats, including the launch of our newest concept, G by Guess.
Internationally, we plan to execute on our strategies to develop the European
and Asian markets, both of which present outstanding growth opportunities for
Guess? in our denim line, our Guess by Marciano contemporary line, Marciano and
accessories. We have strong management in each region of the world and we have a
powerful brand supported by outstanding products to achieve our vision,"
concluded Mr. Marciano.
Total net revenue for the fourth quarter of 2006 increased 25.2% to $346.4
million from $276.6 million in the fourth quarter of 2005. The Company's retail
stores in the U.S. and Canada generated revenue of $240.2 million in the fourth
quarter of 2006, a 16.0% increase from $207.1 million in the prior-year period.
Comparable store sales increased 10.8% in the fourth quarter of 2006. Net
revenue from the Company's wholesale segment increased 27.4% to $42.0 million in
the fourth quarter of 2006, from $33.0 million in the prior-year period. Net
revenue from the Company's European segment increased 87.4% to $42.8 million in
the fourth quarter of 2006, compared to $22.9 million in the prior-year period.
Licensing segment net revenue increased 56.0% to $21.3 million in the fourth
quarter of 2006, from $13.7 million in the prior-year period. The Company
operated 336 retail stores in the U.S. and Canada at the end of the fourth
quarter 2006 versus 315 stores a year earlier.
Operating earnings for the fourth quarter of 2006 increased 63.8% to $71.1
million from $43.4 million in the fourth quarter of 2005. Operating margin in
the fourth quarter improved 480 basis points to 20.5%, compared to the prior
year's quarter. This margin expansion was driven by a gross margin increase of
340 basis points to 46.0%, and an SG&A expense rate reduction of 140 basis
points to 25.5% in the period.
Full Year 2006 Results
For the year ended December 31, 2006, the Company reported record revenues
and record net earnings of $123.2 million, an increase of 109.4% compared to net
earnings of $58.8 million for the year ended December 31, 2005. Diluted earnings
per share increased 104.6% to $2.68 in 2006 versus $1.31 in 2005.
Total net revenue for 2006 increased 26.6% to $1.19 billion from $936.1
million in 2005. The Company's retail stores in the U.S. and Canada generated
revenue of $721.3 million for 2006, an increase of 17.7% from $612.9 million in
2005. Comparable store sales increased 12.2% for the 2006 year. Net revenue from
the Company's wholesale segment increased 20.8% in 2006 to $146.3 million from
$121.1 million in 2005. Net revenue from the Company's European segment
increased 64.1% to $252.4 million in 2006, compared to $153.8 million in 2005.
Licensing segment net revenue increased 35.0% to $65.2 million in 2006, compared
to $48.3 million in 2005.
Operating earnings for 2006 increased 89.6% to $193.0 million from $101.8
million in 2005. Operating margin for 2006 improved by 540 basis points to
16.3%. This margin expansion was driven by a gross margin increase of 310 basis
points to 43.8% and a decrease in the SG&A expense rate of 230 basis points to
27.5%.
Fiscal Year End Change
As announced recently, the Company decided to change its fiscal year end
from December 31 to the Saturday closest to January 31, effective with the
current 2008 fiscal year that began on February 4, 2007 and will end on February
2, 2008. Recast historical financial information for the first three fiscal
quarters of 2006 is included in today's press release as well as posted on the
Company's website under the "Investor's Info" link. Results for the five-week
January 2007 transition period will be reported when the Company releases its
results for the first fiscal quarter ending May 5, 2007.
Outlook
For the recast fourth quarter ended February 3, 2007, the Company expects
consolidated net revenues of approximately $385 million and diluted earnings per
share between $0.95 and $0.97. These expectations include the January 2007
transition period, where same store sales growth of 12.7% and strong shipments
in Europe are expected to generate a diluted earnings per share improvement of
$0.12 to $0.14 versus the year-ago January. Given these expectations, for the
twelve-month period ended February 3, 2007, the Company now anticipates
consolidated net revenues of slightly above $1.2 billion, operating margin of
16.5% and diluted earnings per share in the range of $2.80 to $2.82. The Company
noted that this twelve-month period encompasses 53 weeks, including a five-week
January period.
For the fiscal year ending February 2, 2008, the Company's expectations are
as follows:
- Consolidated net revenues are expected to range from $1.45 billion to
$1.5 billion.
- Operating margin is expected to be about 17%.
- Diluted earnings per share are expected to be in the range of $3.30 to
$3.40.
The fiscal year ending February 2, 2008, will include 52 weeks and a
four-week January.
For the first quarter ending May 5, 2007, the Company's expectations are as
follows:
- Consolidated net revenues are expected to range from $325 million to $335
million.
- Operating margin is expected to be in the low teens.
- Diluted earnings per share are expected to be in the range of $0.52 to
$0.55.
The Company will hold a conference call at 4:30 pm (ET) on February 14, 2007
to discuss the news announced in this press release. A live webcast of the
conference call will be accessible at www.guessinc.com via the "Investor's Info"
link. The webcast will be archived on the website for 30 days.
Guess?, Inc. designs, markets, distributes and licenses a lifestyle
collection of contemporary apparel, accessories and related consumer products.
At February 3, 2007 the Company operated 334 retail stores in the United States
and Canada. The Company also distributes its products through better department
and specialty stores around the world. For more information about the Company,
please visit www.guessinc.com.
Except for historical information contained herein, certain matters
discussed in this press release, including statements concerning the Company's
future prospects and guidance for fiscal years 2007 and 2008, are
forward-looking statements that are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements are only expectations, and involve known and unknown risks and
uncertainties, which may cause actual results in future periods to differ
materially from what is currently anticipated. Factors which may cause actual
results in future periods to differ materially from current expectations include
our ability to, among other things, anticipate consumer preferences, effectively
operate our retail stores, effectively manage inventories, successfully execute
our strategies, including our supply chain and international growth strategies,
and domestic and international general economic conditions and consumer
confidence. In addition to these factors, the economic and other factors
identified in the Company's most recent annual report on Form 10-K and other
filings with the Securities and Exchange Commission, including but not limited
to the risk factors discussed therein, could cause actual results to differ
materially from current expectations.
Contacts: Carlos Alberini
President & Chief Operating Officer
(213) 765-3582
Dennis R. Secor
SVP & Chief Financial Officer
(213) 765-3289
Joseph Teklits
Integrated Corporate Relations
(203) 682-8258
Guess?, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(dollars in thousands, except per share data)
Three Months Ended
---------------------------------------------------------------
December 31, December 31,
2006 2005
----------------------------- -----------------------------
$ % $ %
------------ ------------ ------------ ------------
Net revenue:
Product sales $ 325,097 93.8% $ 262,980 95.1%
Net royalties 21,324 6.2% 13,669 4.9%
346,421 100.0% 276,649 100.0%
Cost of product sales 186,958 54.0% 158,919 57.4%
Gross profit 159,463 46.0% 117,730 42.6%
Selling, general and administrative
expenses 88,353 25.5% 74,307 26.9%
Earnings from operations 71,110 20.5% 43,423 15.7%
Other (income) expense:
Interest expense 2,681 0.8% 1,870 0.7%
Interest income (1,640) (0.5)% (1,124) (0.4)%
Other, net (1,890) (0.5)% --- ---
Earnings before income taxes and
minority interest 71,959 20.7% 42,677 15.4%
Income taxes 26,144 7.5% 16,875 6.1%
Minority interest 132 0.0% --- ---
Net earnings $ 45,683 13.2% $ 25,802 9.3%
Earnings per share:
Basic $ 1.00 $ 0.58
Diluted $ 0.99 $ 0.57
Weighted number of shares outstanding:
Basic 45,630 44,698
Diluted 46,334 45,589
Year Ended
---------------------------------------------------------------
December 31, December 31,
2006 2005
----------------------------- -----------------------------
$ % $ %
------------ ------------ ------------ ------------
Net revenue:
Product sales $ 1,119,945 94.5% $ 887,782 94.8%
Net royalties 65,239 5.5% 48,310 5.2%
1,185,184 100.0% 936,092 100.0%
Cost of product sales 665,805 56.2% 555,223 59.3%
Gross profit 519,379 43.8% 380,869 40.7%
Selling, general and administrative
expenses 326,356 27.5% 279,059 29.8%
Earnings from operations 193,023 16.3% 101,810 10.9%
Other (income) expense:
Interest expense 7,450 0.6% 6,741 0.8%
Interest income (5,947) (0.4)% (2,626) (0.3)%
Other, net (4,477) (0.4)% --- ---
Earnings before income taxes and
minority interest 195,997 16.5% 97,695 10.4%
Income taxes 72,715 6.1% 38,882 4.2%
Minority interest 114 0.0% --- ---
Net earnings $ 123,168 10.4% $ 58,813 6.3%
Earnings per share:
Basic $ 2.72 $ 1.33
Diluted $ 2.68 $ 1.31
Weighted number of shares outstanding:
Basic 45,309 44,387
Diluted 46,037 45,059
Guess?, Inc. and Subsidiaries
Consolidated Segment Data
(in thousands)
Three Months Ended
----------------------------------------------
December 31, December 31, %
2006 2005 chg
------------ ------------ ------------
Net revenue:
Retail operations $ 240,237 $ 207,127 16%
Wholesale operations 42,030 33,002 27%
European operations 42,830 22,851 87%
Licensing operations 21,324 13,669 56%
$ 346,421 $ 276,649 25%
Earnings (loss) from operations:
Retail operations $ 51,324 $ 36,449 41%
Wholesale operations 9,504 3,143 202%
European operations 4,977 192 2492%
Licensing operations 19,748 12,892 53%
Corporate overhead (14,443) (9,253) 56%
$ 71,110 $ 43,423 64%
Operating margins:
Retail operations 21.4% 17.6%
Wholesale operations 22.6% 9.5%
European operations 11.6% 0.8%
Licensing operations 92.6% 94.3%
Total Company 20.5% 15.7%
Year Ended
----------------------------------------------
December 31, December 31, %
2006 2005 chg
------------ ------------ ------------
Net revenue:
Retail operations $ 721,262 $ 612,862 18%
Wholesale operations 146,320 121,103 21%
European operations 252,363 153,817 64%
Licensing operations 65,239 48,310 35%
$ 1,185,184 $ 936,092 27%
Earnings (loss) from operations:
Retail operations $ 100,436 $ 65,274 54%
Wholesale operations 23,963 7,325 227%
European operations 64,211 28,103 128%
Licensing operations 57,189 37,804 51%
Corporate overhead (52,776) (36,696) 44%
$ 193,023 $ 101,810 90%
Operating margins:
Retail operations 13.9% 10.7%
Wholesale operations 16.4% 6.0%
European operations 25.4% 18.3%
Licensing operations 87.7% 78.3%
Total Company 16.3% 10.9%
Guess?, Inc. and Subsidiaries
Selected Condensed Consolidated Balance Sheet Data
(in thousands)
December 31, December 31,
2006 2005
------------ ------------
ASSETS
Cash and cash equivalents $ 220,333 $ 171,549
Receivables, net 133,406 81,762
Inventories, net 166,122 122,037
Other current assets 42,557 32,670
Property and equipment, net 164,260 144,007
Other assets 110,406 81,349
Total Assets $ 837,084 $ 633,374
LIABILITIES AND STOCKHOLDERS' EQUITY
Current installments of notes payable,
long-term debt and capital lease $ 34,357 $ 35,051
Other current liabilities 249,273 182,175
Notes payable, long-term debt and capital
lease, excluding current installments 18,018 53,199
Other long-term liabilities 99,199 74,656
Minority interest 5,178 ---
Stockholders' equity 431,059 288,293
Total Liabilities and Stockholders'
Equity $ 837,084 $ 633,374
Guess?, Inc. and Subsidiaries
Condensed Consolidated Cash Flow Data
(in thousands)
Year Ended
---------------------------
December 31, December 31,
2006 2005
------------ ------------
Net cash provided by operating activities $ 138,253 $ 149,316
Net cash used in investing activities (71,547) (70,314)
Net cash used in financing activities (19,190) (13,324)
Effect of exchange rates on cash 1,268 (132)
Net increase in cash and cash equivalents 48,784 65,546
Cash and cash equivalents at the beginning
of the year 171,549 106,003
Cash and cash equivalents at the end
of the period $ 220,333 $ 171,549
Supplemental information:
Depreciation and amortization $ 38,054 $ 34,639
Rent 84,598 73,126
Guess?, Inc. and Subsidiaries
Retail Store Data
U.S. and Canada
Year Ended
---------------------------
December 31, December 31,
2006 2005
------------ ------------
Number of stores at the beginning of the year 315 287
Store openings 32 37
Store closures (11) (9)
Number of stores at the end of the period 336 315
Total store square footage at the end
of the period 1,621,000 1,563,000
Guess?, Inc. and Subsidiaries
Recast Condensed Consolidated Statements of Operations
(dollars in thousands, except per share data)
Three Months Ended Three Months Ended
April 29, July 29,
2006 2006
----------------------------- -----------------------------
$ % $ %
------------ ------------ ------------ ------------
Net revenue
Product sales $ 251,337 94.6% $ 247,685 94.6%
Net royalties 14,346 5.4% 14,264 5.4%
265,683 100.0% 261,949 100.0%
Cost of product sales 155,073 58.4% 151,618 57.9%
Gross profit 110,610 41.6% 110,331 42.1%
Selling, general and administrative
expenses 76,333 28.7% 76,683 29.3%
Earnings from operations 34,277 12.9% 33,648 12.8%
Other (income) expense:
Interest expense 1,465 0.6% 1,794 0.7%
Interest income (1,227) (0.5)% (1,494) (0.6)%
Other, net (297) (0.1)% (827) (0.3)%
Earnings before income taxes and
minority interest 34,336 12.9% 34,175 13.0%
Income taxes 13,665 5.1% 13,652 5.1%
Minority interest --- --- (123) (0.0)%
Net earnings $ 20,671 7.8% $ 20,646 7.9%
Net earnings per share:
Basic $ 0.46 $ 0.46
Diluted $ 0.45 $ 0.45
Weighted number of shares outstanding:
Basic 45,073 45,297
Diluted 45,811 45,968
Three Months Ended Nine Months Ended
October 28, October 28,
2006 2006
----------------------------- -----------------------------
$ % $ %
------------ ------------ ------------ ------------
Net revenue
Product sales $ 311,914 94.9% $ 810,936 94.7%
Net royalties 16,902 5.1% 45,512 5.3%
328,816 100.0% 856,448 100.0%
Cost of product sales 174,285 53.0% 480,976 56.2%
Gross profit 154,531 47.0% 375,472 43.8%
Selling, general and administrative
expenses 88,366 26.9% 241,382 28.1%
Earnings from operations 66,165 20.1% 134,090 15.7%
Other (income) expense:
Interest expense 1,517 0.5% 4,776 0.6%
Interest income (1,770) (0.6)% (4,491) (0.5)%
Other, net (1,646) (0.5)% (2,770) (0.3)%
Earnings before income taxes and
minority interest 68,064 20.7% 136,575 15.9%
Income taxes 23,963 7.3% 51,280 5.9%
Minority interest 111 0.0% (12) (0.0)%
Net earnings $ 43,990 13.4% $ 85,307 10.0%
Net earnings per share:
Basic $ 0.97 $ 1.89
Diluted $ 0.95 $ 1.86
Weighted number of shares outstanding:
Basic 45,423 45,243
Diluted 46,125 45,950
Guess?, Inc. and Subsidiaries
Recast Consolidated Segment Data
(in thousands)
Three Three Three Nine
Months Months Months Months
Ended Ended Ended Ended
Apr 29, Jul 29, Oct 28, Oct 28,
2006 2006 2006 2006
--------- --------- --------- ---------
Net revenue:
Retail operations $ 150,861 $ 166,095 $ 178,834 $ 495,790
Wholesale operations 33,360 32,824 43,939 110,123
European operations 67,116 48,766 89,141 205,023
Licensing operations 14,346 14,264 16,902 45,512
$ 265,683 $ 261,949 328,816 $ 856,448
Earnings (loss) from operations:
Retail operations $ 13,689 $ 20,939 $ 26,787 $ 61,415
Wholesale operations 3,072 5,394 9,040 17,506
European operations 16,944 8,219 31,103 56,266
Licensing operations 11,888 13,232 13,115 38,235
Corporate overhead (11,316) (14,136) (13,880) (39,332)
$ 34,277 $ 33,648 $ 66,165 $ 134,090
Operating margins:
Retail operations 9.1% 12.6% 15.0% 12.4%
Wholesale operations 9.2% 16.4% 20.6% 15.9%
European operations 25.2% 16.9% 34.9% 27.4%
Licensing operations 82.9% 92.8% 77.6% 84.0%
12.9% 12.8% 20.1% 15.7%
Guess?, Inc. and Subsidiaries
Recast Selected Condensed Consolidated Balance Sheet Data
(in thousands)
April 29, July 29, October 28,
2006 2006 2006
------------ ------------ ------------
ASSETS
Cash and cash equivalents $ 155,533 $ 196,027 $ 163,806
Restricted cash --- --- 16,361
Receivables, net 125,976 109,068 173,750
Inventories, net 108,241 132,453 144,514
Other current assets 34,166 36,911 39,097
Property and equipment, net 150,730 157,755 160,677
Other assets 97,026 104,630 109,337
Total Assets $ 671,672 $ 736,844 $ 807,542
LIABILITIES AND STOCKHOLDERS' EQUITY
Current installments of notes payable,
long-term debt and capital lease $ 44,768 $ 26,262 $ 52,585
Other current liabilities 164,536 226,805 229,159
Notes payable, long-term debt and
capital lease, excluding current
installments 52,152 46,946 41,122
Other long-term liabilities 88,420 88,606 87,930
Minority interest --- 367 478
Stockholders' equity 321,796 347,858 396,268
Total Liabilities and Stockholders'
Equity $ 671,672 $ 736,844 $ 807,542
Guess?, Inc. and Subsidiaries
Recast Condensed Consolidated Cash Flow Data
(in thousands)
Three Six Nine
Months Months Months
Ended Ended Ended
April 29, July 29, October 28,
2006 2006 2006
------------ ------------ ------------
Net cash (used in) provided by
operating activities $ (17,726) $ 63,102 $ 39,514
Net cash used in investing activities (13,039) (32,813) (47,785)
Net cash provided (used in) financing
activities 18,559 (2,087) 4,243
Effect of exchange rates on cash 545 631 640
Net (decrease) increase in cash and
cash equivalents (11,661) 28,833 (3,388)
Cash and cash equivalents at the
beginning of the year 167,194 167,194 167,194
Cash and cash equivalents at the end of
the period $ 155,533 $ 196,027 $ 163,806
Supplemental information:
Depreciation and amortization $ 8,372 $ 17,888 $ 27,991
Rent 20,160 41,195 63,003
Guess?, Inc. and Subsidiaries
Recast Retail Store Data and Comparable Store Sales
U.S. and Canada
Three Six Nine
Months Months Months
Ended Ended Ended
April 29, July 29, October 28,
2006 2006 2006
------------ ------------ ------------
Number of stores at the
beginning of the year 311 311 311
Store openings 9 17 27
Store closures (4) (6) (6)
Number of stores at the
end of the period 316 322 332
Total store square
footage at the end of
the period 1,553,000 1,574,000 1,607,000
Three Three Three Three Twelve
Months Months Months Months Months
Ended Ended Ended Ended Ended
April 29, July 29, October 28, February 3, February 3,
2006 2006 2006 2007 2007
----------- ----------- ----------- ----------- -----------
Comparable store
sales percentage
increase 12.6% 13.7% 8.9% 11.0% 11.4%
SOURCE Guess?, Inc.
-0- 02/14/2007
/CONTACT: Carlos Alberini, President & Chief Operating Officer,
+1-213-765-3582, or Dennis R. Secor, SVP & Chief Financial Officer,
+1-213-765-3289, both of Guess?, Inc.; or Joseph Teklits of Integrated
Corporate Relations, +1-203-682-8258, for Guess?, Inc./
/Web site: http://www.guessinc.com /
(GES)
Exhibit 99.2
GUESS?, INC. ANNOUNCES TWO-FOR-ONE STOCK SPLIT AND INITIATES QUARTERLY CASH
DIVIDEND
LOS ANGELES, Feb. 14 /PRNewswire-FirstCall/ -- Guess?, Inc. (NYSE: GES)
announced today that its Board of Directors has approved a two-for-one stock
split of the Company's common stock. The stock split will be effected in the
form of a 100 percent stock dividend to shareholders of record at the close of
business on February 26, 2007. Stockholders will receive one additional share
for each share held on that date. The additional shares will be distributed
beginning March 12, 2007.
In a separate action, the Board of Directors has also authorized the
initiation of a quarterly cash dividend of $0.12 per share on the Company's
common stock. The first quarterly dividend is payable on March 12, 2007 to
shareholders of record as of the close of business on February 26, 2007.
Because the record date for the first quarterly dividend precedes the
distribution date for the stock split, the cash dividend amount will be on a
pre-split basis. While the Company intends to pay regular quarterly dividends
for the foreseeable future, all subsequent dividends will be reviewed
quarterly and declared by the Board of Directors at its discretion. Any
future dividends will be adjusted for the split.
"We are pleased to announce the two-for-one stock split and the initiation
of a quarterly cash dividend," said Carlos Alberini, President and Chief
Operating Officer. "These actions reflect our confidence in our Company and
recognize our solid financial performance and strong balance sheet. We
believe that these actions will result in increased trading liquidity and a
broader investor base in the future."
Guess?, Inc. designs, markets, distributes and licenses a lifestyle
collection of contemporary apparel, accessories and related consumer products.
At February 3, 2007 the Company operated 334 retail stores in the United
States and Canada. The Company also distributes its products through better
department and specialty stores around the world. For more information about
the Company, please visit www.guessinc.com.
Except for historical information contained herein, certain matters
discussed in this press release, including statements concerning the Company's
intention to pay regular quarterly dividends for the foreseeable future, are
forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are only expectations, and involve known and
unknown risks and uncertainties, which may cause actual results in future
periods to differ materially from what is currently anticipated. Factors
which may cause actual results in future periods to differ materially from
current expectations include the business judgment of the Board of Directors
to declare future dividends, as well as our ability to, among other things,
declare future dividends in compliance with applicable laws, successfully
integrate and expand our newly acquired Focus business, anticipate consumer
preferences, effectively operate our retail stores, effectively manage
inventories, successfully execute our strategies, including our supply chain
and international growth strategies, and domestic and international general
economic conditions and consumer confidence. In addition to these factors,
the economic and other factors identified in the Company's most recent annual
report on Form 10-K and other filings with the Securities and Exchange
Commission, including but not limited to the risk factors discussed therein,
could cause actual results to differ materially from current expectations.
Contacts: Carlos Alberini
President & Chief Operating Officer
(213) 765-3582
Dennis R. Secor
SVP & Chief Financial Officer
(213) 765-3289
Joseph Teklits
Integrated Corporate Relations
(203) 682-8258
SOURCE Guess?, Inc.
-0- 02/14/2007
/CONTACT: Carlos Alberini, President & Chief Operating Officer,
+1-213-765-3582, or Dennis R. Secor, SVP & Chief Financial Officer,
+1-213-765-3289, both of Guess?, Inc.; or Joseph Teklits of Integrated
Corporate Relations, +1-203-682-8258, for Guess?, Inc./
/Web site: http://www.guessinc.com /
(GES)
