- First Quarter Earnings Increase to $0.02 Per Share From Loss Of $0.13
Per Share in First Quarter Last Year -
LOS ANGELES, April 29 /PRNewswire-FirstCall/ -- Guess?, Inc. (NYSE: GES) today reported financial results for the first quarter ended March 27, 2004.
First Quarter Results
For the first quarter ended March 27, 2004, the Company reported net earnings of $0.8 million, or diluted earnings of $0.02 per share, compared to a net loss of $5.8 million, or a diluted loss of $0.13 per share, for the first quarter ended March 29, 2003.
Paul Marciano, Co-Chairman and Co-Chief Executive Officer commented, "Guess? achieved improved operating performance in the first quarter. The 12.8% increase in same store sales coupled with a significant margin increase and a lower S,G&A expense rate resulted in a $10.7 million improvement in operating income for the period, with our retail and wholesale segments contributing the greatest gains. We have maintained a clear focus on our inventory management and cost control as we continue to grow our revenue base through store expansion and same store sales increases. We remain optimistic about Guess?'s prospects for 2004 and the long term."
Total net revenue for the first quarter of 2004 increased 9.9% to $153.3 million from $139.6 million in the first quarter of 2003. The Company's retail stores, including those in Canada, generated revenues of $99.5 million in the 2004 first quarter, a 19.0% increase from $83.7 million, as reported in the same period a year ago. Comparable store sales increased 12.8% during the first quarter of 2004 from the year-ago period. Net revenue from the Company's wholesale segment decreased 4.8% to $42.9 million in the first quarter of 2004 from $45.0 million in the same year-ago period. Licensing segment net revenue was $10.9 million in both the 2004 and 2003 first quarters.
April 2004 Comparable Store Sales
The Company's April 2004 fiscal month began on March 28, 2004 and will end on May 1, 2004. Based on current sales trends, we expect April comparable store sales to increase in the mid-teens on a percentage basis.
The Company will hold a conference call at 4:30 pm (ET) on April 29, 2004 to discuss the news announced in this press release. A live webcast of the conference call will be accessible at www.guess.com via the "Investor's Info" link from the "Guess, Inc." section of the site. The webcast will be archived on the website.
Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, accessories and related consumer products.
Except for historical information contained herein, certain matters discussed in this press release 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 and other future events to differ materially from what is currently anticipated. Factors which may cause actual results in future periods to differ from current expectations include, among other things, the continued availability of sufficient working capital, the successful integration of new stores into existing operations, the continued desirability and customer acceptance of existing and future product lines (including licensed product lines), possible cancellations of wholesale orders, the success of competitive products, and the availability of adequate sources of capital. In addition to these factors, the economic and other factors identified in the Company's most recent annual report on Form 10-K for the fiscal year ended December 31, 2003 including but not limited to the risk factors discussed therein, could affect the forward-looking statements contained herein and in the Company's other public documents.
For further information, please contact: Carlos Alberini, President & Chief Operating Officer, +1-213-765-3582, or Frederick G. Silny, SVP & Chief Financial Officer, +1-213-765-3289, both of Guess?, Inc.; or Wendi Kopsick of Kekst and Company, +1-212-521-4800, for Guess?, Inc.
Guess?, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(in thousands, except per share data)
(Unaudited)
Three Months Ended
March 27, March 29,
2004 2003
$ % $ %
Net revenue:
Product sales $142,405 92.9% $128,722 92.2%
Net royalties 10,940 7.1% 10,862 7.8%
153,345 100.0% 139,584 100.0%
Cost of product sales 100,815 65.7% 98,235 70.4%
Gross profit 52,530 34.3% 41,349 29.6%
Selling, general and
administrative expenses 49,921 32.6% 49,424 35.4%
Earnings (loss)
from operations 2,609 1.7% (8,075) (5.8%)
Other (income) expense:
Interest expense 1,385 0.9% 2,088 1.5%
Interest income (102) (0.1%) (25) --
Other, net -- -- (15) --
Earnings (loss) before
income taxes (benefit) 1,326 0.9% (10,123) (7.3%)
Income taxes (benefit) 570 0.4% (4,350) (3.2%)
Net earnings (loss) $756 0.5% $(5,773) (4.1%)
Net earnings (loss)
per share:
Basic $0.02 $(0.13)
Diluted $0.02 $(0.13)
Weighted number of
shares outstanding:
Basic 43,760 43,140
Diluted 44,361 43,140
Guess?, Inc. and Subsidiaries
Consolidated Segment Data
(in thousands)
(Unaudited)
Three Months Ended
March 27, March 29,
2004 2003
Net revenue:
Retail operations $99,524 $83,662
Wholesale operations 42,881 45,060
Licensing operations 10,940 10,862
$153,345 $139,584
Earnings (loss) from operations:
Retail operations $(1,678) $(6,494)
Wholesale operations 4,097 260
Licensing operations 8,983 8,920
Corporate overhead (8,793) (10,761)
$2,609 $(8,075)
Guess?, Inc. and Subsidiaries
Selected Condensed Consolidated Balance Sheet Data
(in thousands)
(Unaudited)
March 27, December 31, March 29,
2004 2003 2003
ASSETS
Cash and cash equivalents $45,724 $67,163 $9,036
Restricted cash 4,260 4,509 --
Receivables, net 51,118 32,602 49,303
Inventories, net 81,044 83,530 90,976
Other current assets 25,433 22,840 29,218
Property and equipment, net 109,988 114,403 124,284
Other assets 37,261 37,718 32,841
Total Assets $354,828 $362,765 $335,658
LIABILITIES AND STOCKHOLDERS' EQUITY
Current installments of notes
payable and long-term debt $15,124 $13,931 $14,412
Other current liabilities 89,328 96,944 76,662
Notes payable and long-term debt,
excluding current installments 50,349 54,161 69,480
Other liabilities 15,820 14,947 13,648
Stockholders' equity 184,207 182,782 161,456
Total Liabilities and
Stockholders' Equity $354,828 $362,765 $335,658
Guess?, Inc. and Subsidiaries
Condensed Consolidated Cash Flow Data
(in thousands)
(Unaudited)
Three Months Ended
March 27, March 29,
2004 2003
Net cash used in operating activities $(17,449) $(21,256)
Net cash used in investing activities (2,666) (4,165)
Net cash (used in) provided by
financing activities (1,278) 2,547
Effect of exchange rates on cash (46) 157
Net decrease in cash and cash equivalents (21,439) (22,717)
Cash and cash equivalents at the
beginning of the year 67,163 31,753
Cash and cash equivalents at the
end of the period $45,724 $9,036
Supplemental information:
Depreciation and amortization $8,708 $8,678
Rent 15,161 14,376
Guess?, Inc. and Subsidiaries
Retail Store Data
(Unaudited)
Three Months Ended
March 27, March 29,
2004 2003
Number of stores at the beginning
of the year 265 249
Store openings 1 --
Store closures (7) (3)
Number of stores at the end of the period 259 246
Total store square footage at the
end of the period 1,342,000 1,262,000
SOURCE Guess?, Inc.
-0- 04/29/2004
/CONTACT: Carlos Alberini, President & Chief Operating Officer,
+1-213-765-3582, or Frederick G. Silny, SVP & Chief Financial Officer,
+1-213-765-3289, both of Guess?, Inc.; or Wendi Kopsick of Kekst and Company,
+1-212-521-4800, for Guess?, Inc./
/Web site: http://www.guess.com /
(GES)
CO: Guess?, Inc.
ST: California
IN: TEX REA FAS
SU: ERN CCA
CM
-- LATH074 --
0086 04/29/2004 16:00 EDT http://www.prnewswire.com