1-11893 | 95-3679695 |
(Commission File Number) | (IRS Employer Identification No.) |
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: | |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
99.1 | Press Release of Guess?, Inc. dated November 30, 2016 (financial results for the quarter ended October 29, 2016) |
Dated: November 30, 2016 | GUESS?, INC. | |
By: | /s/ Sandeep Reddy | |
Sandeep Reddy Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release of Guess?, Inc. dated November 30, 2016 (financial results for the quarter ended October 29, 2016) |
Exhibit 99.1 |
• | Americas Retail revenues decreased 4.7% in U.S. dollars and 4.6% in constant currency; retail comp sales including e-commerce decreased 4.9% in U.S. dollars and 4.8% in constant currency. |
• | Europe revenues increased 16.4% in U.S. dollars and 16.8% in constant currency. |
• | Asia revenues increased 9.8% in U.S. dollars and 6.4% in constant currency. |
• | Americas Wholesale revenues decreased 4.3% in U.S. dollars and 2.2% in constant currency. |
• | Licensing revenues decreased 14.3% in U.S. dollars and constant currency. |
• | Operating margin for the Company’s Americas Retail segment decreased 400 basis points to negative 4.9% in the third quarter of fiscal 2017, from negative 0.9% in the prior-year period. The decrease in operating margin was driven primarily by the negative impact on the fixed cost structure resulting from negative comparable store sales and more markdowns. |
• | Operating margin for the Company’s Europe segment increased 220 basis points to 6.0% in the third quarter of fiscal 2017, compared to 3.8% in the prior-year period, driven primarily by the favorable impact on the fixed cost structure resulting from higher wholesale shipments and overall leveraging of expenses, partially offset by the unfavorable impact from currency exchange rate fluctuations. |
• | Operating margin for the Company’s Asia segment decreased 630 basis points to negative 1.6% in the third quarter of fiscal 2017, from 4.7% in the prior-year period. The decrease in operating margin was driven by a higher SG&A rate due primarily to the unfavorable impact from country mix and higher expenses resulting from expansion in China. |
• | Operating margin for the Company’s Americas Wholesale segment decreased 310 basis points to 17.4% in the third quarter of fiscal 2017, from 20.5% in the prior-year period, due to lower gross margins and a higher SG&A rate. The lower gross margins were driven primarily by lower initial mark-ups. The higher SG&A rate was due to overall deleveraging of expenses. |
• | Operating margin for the Company’s Licensing segment decreased 480 basis points to 84.7% in the third quarter of fiscal 2017, from 89.5% in the prior-year period. |
• | Americas Retail revenues decreased 4.0% in U.S. dollars and 3.1% in constant currency; retail comp sales including e-commerce decreased 3.9% in U.S. dollars and 3.2% in constant currency. |
• | Europe revenues increased 7.7% in U.S. dollars and 7.2% in constant currency. |
• | Asia revenues decreased 4.2% in U.S. dollars and 2.9% in constant currency. |
• | Americas Wholesale revenues decreased 7.8% in U.S. dollars and 4.1% in constant currency. |
• | Licensing revenues decreased 13.8% in U.S. dollars and constant currency. |
• | Operating margin for the Company’s Americas Retail segment decreased 320 basis points to negative 3.8% in the first nine months of fiscal 2017, from negative 0.6% in the prior-year period. The decrease in operating margin was driven primarily by the negative impact on the fixed cost structure resulting from negative comparable store sales and more markdowns. |
• | Operating margin for the Company’s Europe segment decreased 120 basis points to 3.0% in the first nine months of fiscal 2017, from 4.2% in the prior-year period, due to lower gross margins, partially offset by a lower SG&A rate. The lower gross margins were driven primarily by the unfavorable impact from currency exchange rate fluctuations and business mix, partially offset by the favorable impact from positive comparable store sales. The lower SG&A rate was driven by the favorable impact on the fixed cost structure resulting from positive comparable store sales. |
• | Operating margin for the Company’s Asia segment decreased 770 basis points to negative 3.1% in the first nine months of fiscal 2017, from 4.6% in the prior-year period. The decrease in operating margin was due to a higher SG&A rate and lower gross margins. The higher SG&A rate was driven primarily by higher expenses resulting from expansion in China, the unfavorable impact from country mix and overall deleveraging. The lower gross margins were driven by higher occupancy costs due to retail expansion in China and overall deleveraging. |
• | Operating margin for the Company’s Americas Wholesale segment decreased 260 basis points to 15.6% in the first nine months of fiscal 2017, from 18.2% in the prior-year period. The decrease in operating margin was due to lower gross margins and a higher SG&A rate. The lower gross margins were driven primarily by the unfavorable impact from currency exchange rate fluctuations on product costs and lower initial markups. The higher SG&A rate was due primarily to overall deleveraging. |
• | Operating margin for the Company’s Licensing segment decreased 40 basis points to 88.6% in the first nine months of fiscal 2017, from 89.0% in the prior-year period. |
• | Consolidated net revenues are expected to increase between 3.5% and 7.5% in U.S. dollars. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 0.5%. Excluding the impact of currency, consolidated net revenues are expected to increase between 4.0% and 8.0% in constant currency. |
• | Operating margin is expected to be between 7.5% and 9.5% and includes roughly 30 basis points of currency headwind. |
• | Diluted earnings per share are expected to be in the range of $0.40 to $0.50. Currencies are expected to have a minimal impact on earnings per share for the fourth quarter. |
• | Consolidated net revenues are expected to increase between 0.5% and 1.5% in U.S. dollars. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 0.5%. Excluding the impact of currency, consolidated net revenues are expected to increase between 1.0% and 2.0% in constant currency. |
• | GAAP operating margin is expected to be between 2.5% and 3.0% and includes roughly 60 basis points of currency headwind. Adjusted operating margin is expected to be between 3.0% and 3.5%. |
• | GAAP diluted earnings per share are expected to be in the range of $0.59 to $0.69. The estimated impact on earnings per share of the currency headwinds is approximately $0.14. Adjusted diluted earnings per share are expected to be in the range of $0.42 to $0.52. |
Outlook by Segment1 | ||||||||||
Fourth Quarter of Fiscal 2017 | Fiscal Year 2017 | |||||||||
U.S. Dollars | Constant Currency2 | U.S. Dollars | Constant Currency2 | |||||||
Americas Retail: | ||||||||||
Comps | down MSD to HSD | down MSD to HSD | down LSD to MSD | down LSD to MSD | ||||||
Net Revenue | down LSD to MSD | down LSD to MSD | down LSD to MSD | down LSD | ||||||
Europe: | ||||||||||
Comps | __ | up HSD to LDD | __ | up HSD to LDD | ||||||
Net Revenue | up LDD to high teens | up mid-teens to high-teens | up HSD to LDD | up HSD to LDD | ||||||
Asia: | ||||||||||
Net Revenue | up low-twenties to high-twenties | up low-twenties to mid-twenties | up LSD | up LSD | ||||||
Americas Wholesale: | ||||||||||
Net Revenue | up HSD | up LDD | down LSD | down LSD | ||||||
Licensing: | ||||||||||
Net Revenue | down LDD | __ | down LDD | __ | ||||||
Notes: | ||||||||||
1 | As used in the table above, “LSD” is used to refer to the range of Low-Single-Digits, “MSD” is used to refer to the range of Mid-Single-Digits, “HSD” is used to refer to the range of High-Single-Digits, and “LDD” is used to refer to the range of Low-Double-Digits. | |||||||||
2 | Eliminates the impact of expected foreign currency translation to give investors a better understanding of the underlying trends within the business. |
Contact: | Guess?, Inc. | |
Fabrice Benarouche | ||
VP, Finance and Investor Relations | ||
(213) 765-5578 | ||
Source: | Guess?, Inc. |
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||||||
Condensed Consolidated Statements of Income | ||||||||||||||||||||||||||||
(amounts in thousands, except per share data) | ||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
October 29, 2016 | October 31, 2015 | October 29, 2016 | October 31, 2015 | |||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||
Product sales | $ | 512,553 | 95.6 | % | $ | 493,214 | 94.7 | % | $ | 1,462,029 | 95.6 | % | $ | 1,467,110 | 94.9 | % | ||||||||||||
Net royalties | 23,768 | 4.4 | % | 27,750 | 5.3 | % | 68,066 | 4.4 | % | 78,942 | 5.1 | % | ||||||||||||||||
Net revenue | 536,321 | 100.0 | % | 520,964 | 100.0 | % | 1,530,095 | 100.0 | % | 1,546,052 | 100.0 | % | ||||||||||||||||
Cost of product sales | 356,079 | 66.4 | % | 337,300 | 64.7 | % | 1,021,462 | 66.8 | % | 998,786 | 64.6 | % | ||||||||||||||||
Gross profit | 180,242 | 33.6 | % | 183,664 | 35.3 | % | 508,633 | 33.2 | % | 547,266 | 35.4 | % | ||||||||||||||||
Selling, general and administrative expenses | 165,119 | 30.8 | % | 162,826 | 31.3 | % | 500,828 | 32.7 | % | 495,874 | 32.1 | % | ||||||||||||||||
Restructuring charges | — | 0.0 | % | — | 0.0 | % | 6,083 | 0.4 | % | — | 0.0 | % | ||||||||||||||||
Earnings from operations | 15,123 | 2.8 | % | 20,838 | 4.0 | % | 1,722 | 0.1 | % | 51,392 | 3.3 | % | ||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||||
Interest expense | (500 | ) | (0.1 | %) | (292 | ) | (0.0 | %) | (1,478 | ) | (0.0 | %) | (1,456 | ) | (0.1 | %) | ||||||||||||
Interest income | 861 | 0.2 | % | 273 | 0.0 | % | 1,763 | 0.1 | % | 784 | 0.1 | % | ||||||||||||||||
Other income, net | 125 | 0.0 | % | 247 | 0.0 | % | 26,417 | 1.7 | % | 6,581 | 0.4 | % | ||||||||||||||||
Earnings before income tax expense | 15,609 | 2.9 | % | 21,066 | 4.0 | % | 28,424 | 1.9 | % | 57,301 | 3.7 | % | ||||||||||||||||
Income tax expense | 5,880 | 1.1 | % | 8,005 | 1.5 | % | 11,682 | 0.8 | % | 21,774 | 1.4 | % | ||||||||||||||||
Net earnings | 9,729 | 1.8 | % | 13,061 | 2.5 | % | 16,742 | 1.1 | % | 35,527 | 2.3 | % | ||||||||||||||||
Net earnings attributable to noncontrolling interests | 626 | 0.1 | % | 617 | 0.1 | % | 548 | 0.0 | % | 1,453 | 0.1 | % | ||||||||||||||||
Net earnings attributable to Guess?, Inc. | $ | 9,103 | 1.7 | % | $ | 12,444 | 2.4 | % | $ | 16,194 | 1.1 | % | $ | 34,074 | 2.2 | % | ||||||||||||
Net earnings per common share attributable to common stockholders: | ||||||||||||||||||||||||||||
Basic | $ | 0.11 | $ | 0.15 | $ | 0.19 | $ | 0.40 | ||||||||||||||||||||
Diluted | $ | 0.11 | $ | 0.15 | $ | 0.19 | $ | 0.40 | ||||||||||||||||||||
Weighted average common shares outstanding attributable to common stockholders: | ||||||||||||||||||||||||||||
Basic | 83,758 | 83,985 | 83,631 | 84,651 | ||||||||||||||||||||||||
Diluted | 83,917 | 84,373 | 83,813 | 84,847 | ||||||||||||||||||||||||
Effective tax rate | 37.7 | % | 38.0 | % | 41.1 | % | 38.0 | % | ||||||||||||||||||||
Adjusted earnings from operations1: | $ | 7,805 | 0.5 | % | ||||||||||||||||||||||||
Adjusted net earnings attributable to Guess?, Inc.1: | $ | 1,687 | 0.1 | % | ||||||||||||||||||||||||
Adjusted diluted earnings per common share attributable to common stockholders1: | $ | 0.02 | ||||||||||||||||||||||||||
Adjusted effective tax rate1 | 81.7 | % | ||||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||||
1 | The adjusted results reflect the exclusion of a gain on sale of a minority interest investment, restructuring charges, related exit tax charge and tax impacts recorded during the nine months ended October 29, 2016. No adjustments have been made to the same prior-year period. A complete reconciliation of actual results to adjusted results is presented in the table entitled “Reconciliation of GAAP Results to Adjusted Results.” | |||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries | |||||||||||
Reconciliation of GAAP Results to Adjusted Results | |||||||||||
(dollars in thousands) | |||||||||||
The following table provides reconciliations of reported GAAP earnings from operations to adjusted earnings from operations, reported GAAP net earnings attributable to Guess?, Inc. to adjusted net earnings attributable to Guess?, Inc. and reported GAAP income tax expense to adjusted income tax expense for the nine months ended October 29, 2016. | |||||||||||
Nine Months Ended | |||||||||||
October 29, 2016 | |||||||||||
% of | |||||||||||
$ | Revenues | ||||||||||
Reported GAAP earnings from operations | $ | 1,722 | 0.1% | ||||||||
Restructuring charges1 | 6,083 | ||||||||||
Adjusted earnings from operations | $ | 7,805 | 0.5% | ||||||||
Reported GAAP net earnings attributable to Guess?, Inc. | $ | 16,194 | 1.1% | ||||||||
Restructuring charges1 | 6,083 | ||||||||||
Gain on sale of a minority interest investment2 | (22,279 | ) | |||||||||
Income tax adjustments3 | (222 | ) | |||||||||
Exit tax charge4 | 1,911 | ||||||||||
Total adjustments affecting net earnings attributable to Guess?, Inc. | (14,507 | ) | |||||||||
Adjusted net earnings attributable to Guess?, Inc. | $ | 1,687 | 0.1% | ||||||||
Reported GAAP income tax expense | $ | 11,682 | |||||||||
Total income tax adjustments3 | 222 | ||||||||||
Exit tax charge4 | (1,911 | ) | |||||||||
Total income tax effect | (1,689 | ) | |||||||||
Adjusted income tax expense | $ | 9,993 | |||||||||
Adjusted effective tax rate | 81.7 | % | |||||||||
Notes: | |||||||||||
1 | During the first quarter of fiscal 2017, the Company implemented a global cost reduction and restructuring plan to better align its global cost and organizational structure with its current strategic initiatives which resulted in restructuring charges, mainly related to cash-based severance costs, incurred during the nine months ended October 29, 2016. The restructuring charges were recorded during the three months ended April 30, 2016. | ||||||||||
2 | The Company recognized a gain related to the sale of its minority interest equity holding in a privately-held boutique apparel company during the nine months ended October 29, 2016. The gain related to the sale was recorded during the three months ended July 30, 2016. | ||||||||||
3 | The income tax effect of the restructuring charges was based on the Company’s assessment of deductibility using the statutory tax rate of the tax jurisdiction in which the charges were incurred. The income tax effect on the gain on sale of the minority interest investment was based on the impact of the transaction on the effective tax rate. | ||||||||||
4 | As a result of the global cost reduction and restructuring plan, the Company incurred an estimated exit tax charge related to its reorganization in Europe during the nine months ended October 29, 2016. The estimated exit tax charge was recorded during the three months ended April 30, 2016. | ||||||||||
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||
Consolidated Segment Data | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
October 29, | October 31, | % | October 29, | October 31, | % | |||||||||||||||||||
2016 | 2015 | change | 2016 | 2015 | change | |||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||
Americas Retail | $ | 215,862 | $ | 226,599 | (5%) | $ | 646,573 | $ | 673,304 | (4%) | ||||||||||||||
Europe | 187,008 | 160,696 | 16% | 535,855 | 497,468 | 8% | ||||||||||||||||||
Asia | 64,865 | 59,100 | 10% | 172,241 | 179,880 | (4%) | ||||||||||||||||||
Americas Wholesale | 44,818 | 46,819 | (4%) | 107,360 | 116,458 | (8%) | ||||||||||||||||||
Licensing | 23,768 | 27,750 | (14%) | 68,066 | 78,942 | (14%) | ||||||||||||||||||
$ | 536,321 | $ | 520,964 | 3% | $ | 1,530,095 | $ | 1,546,052 | (1%) | |||||||||||||||
Earnings (loss) from operations: | ||||||||||||||||||||||||
Americas Retail | $ | (10,614 | ) | $ | (2,053 | ) | (417%) | $ | (24,829 | ) | $ | (4,018 | ) | (518%) | ||||||||||
Europe | 11,157 | 6,150 | 81% | 16,105 | 20,668 | (22%) | ||||||||||||||||||
Asia | (1,049 | ) | 2,794 | (138%) | (5,264 | ) | 8,294 | (163%) | ||||||||||||||||
Americas Wholesale | 7,814 | 9,583 | (18%) | 16,764 | 21,202 | (21%) | ||||||||||||||||||
Licensing | 20,141 | 24,842 | (19%) | 60,289 | 70,282 | (14%) | ||||||||||||||||||
Corporate Overhead | (12,326 | ) | (20,478 | ) | (40%) | (55,260 | ) | (65,036 | ) | (15%) | ||||||||||||||
Restructuring Charges | — | — | (6,083 | ) | — | |||||||||||||||||||
$ | 15,123 | $ | 20,838 | (27%) | $ | 1,722 | $ | 51,392 | (97%) | |||||||||||||||
Operating margins: | ||||||||||||||||||||||||
Americas Retail | (4.9 | %) | (0.9 | %) | (3.8 | %) | (0.6 | %) | ||||||||||||||||
Europe | 6.0 | % | 3.8 | % | 3.0 | % | 4.2 | % | ||||||||||||||||
Asia | (1.6 | %) | 4.7 | % | (3.1 | %) | 4.6 | % | ||||||||||||||||
Americas Wholesale | 17.4 | % | 20.5 | % | 15.6 | % | 18.2 | % | ||||||||||||||||
Licensing | 84.7 | % | 89.5 | % | 88.6 | % | 89.0 | % | ||||||||||||||||
Total Company including restructuring charges | 2.8 | % | 4.0 | % | 0.1 | % | 3.3 | % | ||||||||||||||||
Total Company before restructuring charges | 2.8 | % | 4.0 | % | 0.5 | % | 3.3 | % |
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||
Constant Currency Financial Measures | ||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
October 29, 2016 | October 31, 2015 | % change | ||||||||||||||||||||||
As Reported | Foreign Currency Impact | Constant Currency | As Reported | As Reported | Constant Currency | |||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||
Americas Retail | $ | 215,862 | $ | 269 | $ | 216,131 | $ | 226,599 | (5%) | (5%) | ||||||||||||||
Europe | 187,008 | 709 | 187,717 | 160,696 | 16% | 17% | ||||||||||||||||||
Asia | 64,865 | (1,961 | ) | 62,904 | 59,100 | 10% | 6% | |||||||||||||||||
Americas Wholesale | 44,818 | 971 | 45,789 | 46,819 | (4%) | (2%) | ||||||||||||||||||
Licensing | 23,768 | — | 23,768 | 27,750 | (14%) | (14%) | ||||||||||||||||||
$ | 536,321 | $ | (12 | ) | $ | 536,309 | $ | 520,964 | 3% | 3% | ||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||
October 29, 2016 | October 31, 2015 | % change | ||||||||||||||||||||||
As Reported | Foreign Currency Impact | Constant Currency | As Reported | As Reported | Constant Currency | |||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||
Americas Retail | $ | 646,573 | $ | 6,001 | $ | 652,574 | $ | 673,304 | (4%) | (3%) | ||||||||||||||
Europe | 535,855 | (2,519 | ) | 533,336 | 497,468 | 8% | 7% | |||||||||||||||||
Asia | 172,241 | 2,344 | 174,585 | 179,880 | (4%) | (3%) | ||||||||||||||||||
Americas Wholesale | 107,360 | 4,296 | 111,656 | 116,458 | (8%) | (4%) | ||||||||||||||||||
Licensing | 68,066 | — | 68,066 | 78,942 | (14%) | (14%) | ||||||||||||||||||
$ | 1,530,095 | $ | 10,122 | $ | 1,540,217 | $ | 1,546,052 | (1%) | (0%) | |||||||||||||||
Guess?, Inc. and Subsidiaries | |||||||||||||||||||
Selected Condensed Consolidated Balance Sheet Data | |||||||||||||||||||
(in thousands) | |||||||||||||||||||
October 29, | January 30, | October 31, | |||||||||||||||||
2016 | 2016 | 20151 | |||||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 349,104 | $ | 445,480 | $ | 402,386 | |||||||||||||
Receivables, net | 218,205 | 222,359 | 195,825 | ||||||||||||||||
Inventories | 428,139 | 311,704 | 373,103 | ||||||||||||||||
Other current assets | 59,479 | 56,709 | 59,497 | ||||||||||||||||
Property and equipment, net | 272,918 | 255,344 | 240,058 | ||||||||||||||||
Other assets | 251,918 | 247,152 | 251,603 | ||||||||||||||||
Total Assets | $ | 1,579,763 | $ | 1,538,748 | $ | 1,522,472 | |||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Current portion of borrowings and capital lease obligations | $ | 560 | $ | 4,024 | $ | 4,450 | |||||||||||||
Other current liabilities | 363,416 | 323,035 | 322,600 | ||||||||||||||||
Long-term debt | 23,540 | 2,318 | 2,189 | ||||||||||||||||
Other long-term liabilities | 179,372 | 172,826 | 174,288 | ||||||||||||||||
Redeemable and nonredeemable noncontrolling interests | 14,659 | 18,070 | 17,004 | ||||||||||||||||
Guess?, Inc. stockholders’ equity | 998,216 | 1,018,475 | 1,001,941 | ||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 1,579,763 | $ | 1,538,748 | $ | 1,522,472 | |||||||||||||
Notes: | |||||||||||||||||||
1 | As a result of the adoption of new authoritative guidance during fiscal 2016 which requires that all deferred tax liabilities and assets be classified as long-term on the balance sheet, other current assets and other assets at October 31, 2015 were adjusted to reflect the reclassification of deferred tax assets for $19.3 million from current to long-term. |
Guess?, Inc. and Subsidiaries | ||||||||||||||
Condensed Consolidated Cash Flow Data | ||||||||||||||
(in thousands) | ||||||||||||||
Nine Months Ended | ||||||||||||||
October 29, | October 31, | |||||||||||||
2016 | 2015 | |||||||||||||
Net cash provided by (used in) operating activities | $ | (30,775 | ) | $ | 64,727 | |||||||||
Net cash used in investing activities | (25,383 | ) | (30,529 | ) | ||||||||||
Net cash used in financing activities | (44,977 | ) | (107,994 | ) | ||||||||||
Effect of exchange rates on cash and cash equivalents | 4,759 | (7,301 | ) | |||||||||||
Net change in cash and cash equivalents | (96,376 | ) | (81,097 | ) | ||||||||||
Cash and cash equivalents at the beginning of the year | 445,480 | 483,483 | ||||||||||||
Cash and cash equivalents at the end of the period | $ | 349,104 | $ | 402,386 | ||||||||||
Supplemental information: | ||||||||||||||
Depreciation and amortization | $ | 51,194 | $ | 54,013 | ||||||||||
Rent | $ | 193,671 | $ | 193,292 |
Guess?, Inc. and Subsidiaries | ||||||||||||||
Reconciliation of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow | ||||||||||||||
(in thousands) | ||||||||||||||
Nine Months Ended | ||||||||||||||
October 29, | October 31, | |||||||||||||
2016 | 2015 | |||||||||||||
Net cash provided by (used in) operating activities | $ | (30,775 | ) | $ | 64,727 | |||||||||
Less: Purchases of property and equipment | (66,849 | ) | (40,293 | ) | ||||||||||
Free cash flow | $ | (97,624 | ) | $ | 24,434 | |||||||||
Guess?, Inc. and Subsidiaries | ||||||||||
Retail Store Data | ||||||||||
International Store Count | ||||||||||
As of October 29, 2016 | As of October 31, 2015 | |||||||||
Total | Directly Operated | Total | Directly Operated | |||||||
Region | Stores | Stores | Stores | Stores | ||||||
United States | 342 | 341 | 347 | 346 | ||||||
Canada | 111 | 111 | 114 | 114 | ||||||
Central and South America | 91 | 48 | 96 | 43 | ||||||
Total Americas | 544 | 500 | 557 | 503 | ||||||
Europe and the Middle East | 614 | 321 | 593 | 274 | ||||||
Asia | 493 | 95 | 475 | 49 | ||||||
1,651 | 916 | 1,625 | 826 | |||||||
Guess?, Inc. and Subsidiaries | ||||||||||
Directly Operated Retail Store Data | ||||||||||
U.S. and Canada | ||||||||||
Nine Months Ended | ||||||||||
October 29, | October 31, | |||||||||
2016 | 2015 | |||||||||
Number of stores at the beginning of the year | 455 | 481 | ||||||||
Store openings | 11 | 10 | ||||||||
Store closures | (14) | (31) | ||||||||
Number of stores at the end of the period | 452 | 460 | ||||||||
Total store square footage at the end of the period | 2,216,000 | 2,225,000 |
Guess?, Inc. and Subsidiaries | |||||||||||||||||||||
Americas Retail Net Revenue | |||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
October 29, | October 31, | % | October 29, | October 31, | % | ||||||||||||||||
2016 | 2015 | change | 2016 | 2015 | change | ||||||||||||||||
Net revenue: | |||||||||||||||||||||
Retail stores | $ | 195,383 | $ | 206,466 | (5.4 | %) | $ | 586,792 | $ | 616,727 | (4.9 | %) | |||||||||
E-commerce sites | 20,479 | 20,133 | 1.7 | % | 59,781 | 56,577 | 5.7 | % | |||||||||||||
Total | $ | 215,862 | $ | 226,599 | (4.7 | %) | $ | 646,573 | $ | 673,304 | (4.0 | %) | |||||||||
Guess?, Inc. and Subsidiaries | |||||||
Retail Store Change in Comparable Store Sales | |||||||
U.S. and Canada | |||||||
Three Months Ended | Nine Months Ended | ||||||
October 29, 2016 | October 29, 2016 | ||||||
U.S. Dollars | Constant Currency | U.S. Dollars | Constant Currency | ||||
Excluding e-commerce sales | (5.6%) | (5.4%) | (4.8%) | (4.1%) | |||
Impact of e-commerce sales | 0.7% | 0.6% | 0.9% | 0.9% | |||
Including e-commerce sales | (4.9%) | (4.8%) | (3.9%) | (3.2%) |