Second Quarter Fiscal 2016 Highlights
- Americas Retail revenues decreased 5%; retail comp sales including e-commerce decreased 3% in U.S. dollars and was flat in constant currency
Europe revenues decreased 15% in U.S. dollars and increased 4% in constant currencyAsia revenues decreased 12% in U.S. dollars and 6% in constant currency- Americas Wholesale revenues decreased 15% in U.S. dollars and 9% in constant currency
- Operating earnings decreased 12%
- Earnings per share decreased 19%, including the negative impact of currency of 38%
Second Quarter Fiscal 2016 Results
For the second quarter of fiscal 2016, the Company recorded net earnings of
Total net revenue for the second quarter of fiscal 2016 decreased 10.2% to
- The Company's retail stores and e-commerce sites in the
Americas generated revenue of$232.5 million in the second quarter of fiscal 2016, a 4.7% decrease from$244.0 million in the same period a year ago. Comparable store sales including the results of our e-commerce sites in the U.S. andCanada for the second quarter of fiscal 2016 decreased 2.8% in U.S. dollars and was relatively flat in constant currency compared to the same period a year ago. - Net revenue from the Company's
Europe segment decreased 15.3% to$199.4 million in the second quarter of fiscal 2016, from$235.3 million in the prior-year period. In constant currency, net revenue increased 3.7%. - Net revenue from the Company's
Asia segment decreased 11.7% to$56.7 million in the second quarter of fiscal 2016, from$64.3 million in the prior-year period. In constant currency, net revenue decreased 6.0%. - Net revenue from the Company's Americas Wholesale segment decreased 15.4% to
$32.4 million in the second quarter of fiscal 2016, from$38.3 million in the prior-year period. In constant currency, net revenue decreased 9.0%. - Licensing segment net revenue decreased 5.5% to
$25.3 million in the second quarter of fiscal 2016, from$26.8 million in the prior-year period.
Operating earnings for the second quarter of fiscal 2016 decreased 12.2% to
- Operating margin for the Company's Americas Retail segment increased 420 basis points to 2.3% in the second quarter of fiscal 2016, compared to negative 1.9% in the prior-year period. The increase in operating margin was driven by higher gross margins due primarily to less markdowns and higher initial mark-ups, partially offset by the unfavorable impact from currency exchange rate fluctuations on product costs, and a lower SG&A rate driven by lower store impairment charges.
- Operating margin for the Company's
Europe segment decreased 130 basis points to 9.1% in the second quarter of fiscal 2016, compared to 10.4% in the prior-year period. The decrease in operating margin was driven primarily by lower gross margins due to the unfavorable impact from currency exchange rate fluctuations on product costs, partially offset by higher initial mark-ups. - Operating margin for the Company's
Asia segment decreased 190 basis points to 1.6% in the second quarter of fiscal 2016, compared to 3.5% in the prior-year period. The decrease in operating margin was driven by lower gross margins inSouth Korea and a higher SG&A rate due primarily to overall deleveraging. - Operating margin for the Company's Americas Wholesale segment increased 160 basis points to 15.1% in the second quarter of fiscal 2016, compared to 13.5% in the prior-year period. The increase in operating margin was due to higher product margins, partially offset by an overall deleveraging of SG&A expenses.
- Operating margin for the Company's Licensing segment decreased 450 basis points to 88.5% in the second quarter of fiscal 2016, compared to 93.0% in the prior-year period.
Other net income, which primarily includes net unrealized and realized mark-to-market gains on foreign currency contracts, was
The Company's effective tax rate increased to 37.2% for the second quarter of fiscal 2016, compared to 34.8% in the prior-year quarter.
Six-Month Period Results
Net earnings for the six months ended
Total net revenue for the first six months of fiscal 2016 decreased 9.4% to
- The Company's retail stores and e-commerce sites in the
Americas generated revenue of$446.7 million in the first six months of fiscal 2016, a 5.4% decrease from$472.3 million in the same period a year ago. Comparable store sales including the results of our e-commerce sites in the U.S. andCanada for the six months endedAugust 1, 2015 decreased 4.3% in U.S. dollars and 1.8% in constant currency compared to the same period a year ago. - Net revenue from the Company's
Europe segment decreased 14.6% to$336.8 million in the first six months of fiscal 2016, from$394.4 million in the prior-year period. In constant currency, net revenue increased 5.3%. - Net revenue from the Company's
Asia segment decreased 10.1% to$120.8 million in the first six months of fiscal 2016, from$134.4 million in the prior-year period. In constant currency, net revenue decreased 6.0%. - Net revenue from the Company's Americas Wholesale segment decreased 10.2% to
$69.6 million in the first six months of fiscal 2016, from$77.6 million in the prior-year period. In constant currency, net revenue decreased 3.8%. - Licensing segment net revenue decreased 2.3% to
$51.2 million in the first six months of fiscal 2016, from$52.4 million in the prior-year period.
Operating earnings for the first six months of fiscal 2016 increased 9.6% to
- Operating margin for the Company's Americas Retail segment increased 240 basis points to negative 0.4% in the first six months of fiscal 2016, compared to negative 2.8% in the prior-year period. The increase in operating margin was driven primarily by higher gross margins due primarily to less markdowns and higher initial mark-ups, partially offset by the negative impact on the fixed cost structure resulting from negative comparable store sales and the unfavorable impact from currency exchange rate fluctuations on product costs.
- Operating margin for the Company's
Europe segment decreased 20 basis points to 4.3% in the first six months of fiscal 2016, compared to 4.5% in the prior-year period. The decrease in operating margin was driven by lower gross margins due to the unfavorable impact from currency exchange rate fluctuations on product costs, partially offset by higher initial mark-ups. - Operating margin for the Company's
Asia segment increased 40 basis points to 4.6% in the first six months of fiscal 2016, compared to 4.2% in the prior-year period. The increase in operating margin was driven by a lower SG&A rate due primarily to an overall leveraging of expenses as we phase out of our G by GUESS concept inSouth Korea , partially offset by lower gross margins inSouth Korea . - Operating margin for the Company's Americas Wholesale segment was flat at 16.7% in the first six months of fiscal 2016 compared to the prior-year period.
- Operating margin for the Company's Licensing segment decreased 210 basis points to 88.8% in the first six months of fiscal 2016, compared to 90.9% in the prior-year period.
Other net income, which primarily includes net unrealized and realized mark-to-market gains on foreign currency contracts and net unrealized and realized gains on non-operating assets, was
The Company's effective tax rate increased to 38.0% for the first six months of fiscal 2016, compared to 35.1% in the prior-year period.
Outlook
The following guidance assumes that foreign currency exchange rates remain at prevailing rates:
The Company's expectations for the third quarter of fiscal 2016 ending October 31, 2015, are as follows:
- Consolidated net revenues are expected to decline between 4.5% and 3.0% in constant currency. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 8.0%, for a net decline between 12.5% and 11.0%.
- Operating margin is expected to be between 2.0% and 3.0% and includes 150 basis points of currency headwind.
- Diluted earnings per share are expected to be in the range of
$0.08 to $0.12 . The estimated impact on earnings per share of the currency headwinds is approximately$0.12 .
The Company updated its outlook for the fiscal year ending January 30, 2016, which is now as follows:
- Consolidated net revenues are expected to decline between 1.5% and 0.5% in constant currency. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 7.5%, for a net decline between 9.0% and 8.0%.
- Operating margin is expected to be between 5.0% and 6.0% and includes 130 basis points of currency headwind.
- Diluted earnings per share are expected to be in the range of
$0.89 to $1.02 . The estimated impact on earnings per share of the currency headwinds is approximately$0.40 .
On a segment basis, the Company expects the following ranges for percentage changes for comparable store sales ("comps") and net revenue in constant currency and U.S. dollars compared to the same prior-year period:
Outlook by Segment1 |
||||||||||
Third Quarter of Fiscal 2016 |
Fiscal Year 2016 |
|||||||||
Constant Currency2 |
U.S. Dollars |
Constant Currency2 |
U.S. Dollars |
|||||||
Americas Retail3: |
||||||||||
Comps |
flat to up LSD |
down LSD |
flat to up LSD |
down LSD |
||||||
Net Revenue |
down LSD to up LSD |
down LSD |
down LSD to flat |
down LSD |
||||||
Europe: |
||||||||||
Comps |
up MSD |
__ |
up LSD |
__ |
||||||
Net Revenue |
down MSD |
down low-twenties |
up LSD |
down low-teens |
||||||
Asia: |
||||||||||
Net Revenue |
down MSD to LSD |
down low-teens to LDD |
down HSD |
down low-teens |
||||||
Americas Wholesale3: |
||||||||||
Net Revenue |
down HSD |
down high-teens |
down MSD |
down low-teens |
||||||
Licensing: |
||||||||||
Net Revenue |
__ |
down MSD |
__ |
down LSD |
||||||
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. |
3 |
Beginning this quarter, the Company has changed the names of its "North American Retail" and "North American Wholesale" segments to "Americas Retail" and "Americas Wholesale" to better reflect that these segments are inclusive of its operations in North America as well as Central and South America. There have been no changes to the underlying reporting in either segment. |
Dividends
The Company also announced today that its Board of Directors has approved a quarterly cash dividend of
Presentation of Non-GAAP Information
The financial information presented in this release includes non-GAAP financial measures such as constant currency financial information and free cash flow measures. The non-GAAP measures are provided in addition to, and not as alternatives for, the Company's reported GAAP results.
This release includes certain constant currency financial information. Foreign currency exchange rate fluctuations affect the amount reported from translating the Company's foreign revenue, expenses and balance sheet amounts into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results under GAAP. The Company provides constant currency information to enhance the visibility of underlying business trends, excluding the effects of changes in foreign currency translation rates. To calculate net revenue, comparable store sales and earnings (loss) from operations on a constant currency basis, operating or forecasted results for the current-year period are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year. The constant currency calculations do not adjust for the impact of revaluing specific transactions denominated in a currency that is different to the functional currency of that entity when exchange rates fluctuate. However, in calculating the estimated impact of currency on our earnings per share guidance for the third quarter and full year of fiscal 2016, the Company estimates gross margin (including the impact of merchandise-related hedges) and expenses using the appropriate prior-year rates, translates the estimated foreign earnings at the comparable prior-year rates, and excludes the year-over-year earnings impact of gains or losses arising from balance sheet remeasurement and foreign currency contracts not designated as merchandise hedges. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.
The Company also includes information regarding its free cash flows in this release. The Company calculates free cash flows as cash flows from operating activities less purchases of property and equipment. Free cash flows is not intended to be an alternative to cash flows from operating activities as a measure of liquidity, but rather provides additional visibility to investors regarding how much cash is generated for discretionary and non-discretionary items after deducting purchases of property and equipment. Free cash flow information presented may not be comparable to similarly titled measures reported by other companies. A reconciliation of reported GAAP cash flows from operating activities to the comparable non-GAAP free cash flow measure is provided in the accompanying tables.
Investor Conference Call
The Company will hold a conference call at
About Guess?
Forward-Looking Statements
Except for historical information contained herein, certain matters discussed in this press release or the related conference call and webcast, including statements concerning the Company's expectations, future prospects and strategic initiatives (including those identified by the Company's new Chief Executive Officer,
Guess?, Inc. and Subsidiaries |
||||||||||||||||||||||||||||||||||||||||
Condensed Consolidated Statements of Income |
||||||||||||||||||||||||||||||||||||||||
(amounts in thousands, except per share data) |
||||||||||||||||||||||||||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||||||||||||||||||
August 1, 2015 |
August 2, 2014 |
August 1, 2015 |
August 2, 2014 |
|||||||||||||||||||||||||||||||||||||
$ |
% |
$ |
% |
$ |
% |
$ |
% |
|||||||||||||||||||||||||||||||||
Product sales |
$ |
520,937 |
95.4% |
$ |
581,779 |
95.6% |
$ |
973,896 |
95.0% |
$ |
1,078,707 |
95.4% |
||||||||||||||||||||||||||||
Net royalties |
25,327 |
4.6% |
26,792 |
4.4% |
51,192 |
5.0% |
52,405 |
4.6% |
||||||||||||||||||||||||||||||||
Net revenue |
546,264 |
100.0% |
608,571 |
100.0% |
1,025,088 |
100.0% |
1,131,112 |
100.0% |
||||||||||||||||||||||||||||||||
Cost of product sales |
348,147 |
63.7% |
391,794 |
64.4% |
661,486 |
64.5% |
738,104 |
65.3% |
||||||||||||||||||||||||||||||||
Gross profit |
198,117 |
36.3% |
216,777 |
35.6% |
363,602 |
35.5% |
393,008 |
34.7% |
||||||||||||||||||||||||||||||||
Selling, general and administrative expenses |
171,916 |
31.5% |
186,919 |
30.7% |
333,048 |
32.5% |
365,127 |
32.2% |
||||||||||||||||||||||||||||||||
Earnings from operations |
26,201 |
4.8% |
29,858 |
4.9% |
30,554 |
3.0% |
27,881 |
2.5% |
||||||||||||||||||||||||||||||||
Other income (expense): |
||||||||||||||||||||||||||||||||||||||||
Interest expense |
(729) |
(0.1%) |
(772) |
(0.1%) |
(1,164) |
(0.1%) |
(1,297) |
(0.1%) |
||||||||||||||||||||||||||||||||
Interest income |
239 |
0.1% |
320 |
0.1% |
511 |
0.0% |
725 |
0.1% |
||||||||||||||||||||||||||||||||
Other, net |
3,708 |
0.6% |
4,766 |
0.7% |
6,334 |
0.6% |
3,647 |
0.2% |
||||||||||||||||||||||||||||||||
Earnings before income tax expense |
29,419 |
5.4% |
34,172 |
5.6% |
36,235 |
3.5% |
30,956 |
2.7% |
||||||||||||||||||||||||||||||||
Income tax expense |
10,940 |
2.0% |
11,900 |
1.9% |
13,769 |
1.3% |
10,871 |
0.9% |
||||||||||||||||||||||||||||||||
Net earnings |
18,479 |
3.4% |
22,272 |
3.7% |
22,466 |
2.2% |
20,085 |
1.8% |
||||||||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interests |
190 |
0.1% |
318 |
0.1% |
836 |
0.1% |
232 |
0.0% |
||||||||||||||||||||||||||||||||
Net earnings attributable to Guess?, Inc. |
$ |
18,289 |
3.3% |
$ |
21,954 |
3.6% |
$ |
21,630 |
2.1% |
$ |
19,853 |
1.8% |
||||||||||||||||||||||||||||
Net earnings per common share attributable to common stockholders: |
||||||||||||||||||||||||||||||||||||||||
Basic |
$ |
0.21 |
$ |
0.26 |
$ |
0.25 |
$ |
0.23 |
||||||||||||||||||||||||||||||||
Diluted |
$ |
0.21 |
$ |
0.26 |
$ |
0.25 |
$ |
0.23 |
||||||||||||||||||||||||||||||||
Weighted average common shares outstanding attributable to common stockholders: |
||||||||||||||||||||||||||||||||||||||||
Basic |
85,004 |
84,573 |
84,985 |
84,536 |
||||||||||||||||||||||||||||||||||||
Diluted |
85,290 |
84,799 |
85,132 |
84,765 |
||||||||||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries |
||||||||||||||||||||||||||||||||||||||||
Consolidated Segment Data |
||||||||||||||||||||||||||||||||||||||||
(dollars in thousands) |
||||||||||||||||||||||||||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||||||||||||||||||||||||||
August 1, |
August 2, |
% |
August 1, |
August 2, |
% |
|||||||||||||||||||||||||||||||||||
2015 |
2014 |
change |
2015 |
2014 |
change |
|||||||||||||||||||||||||||||||||||
Net revenue: |
||||||||||||||||||||||||||||||||||||||||
Americas Retail1 |
$ |
232,456 |
$ |
244,000 |
(5%) |
$ |
446,705 |
$ |
472,344 |
(5%) |
||||||||||||||||||||||||||||||
Europe |
199,375 |
235,260 |
(15%) |
336,772 |
394,418 |
(15%) |
||||||||||||||||||||||||||||||||||
Asia |
56,745 |
64,267 |
(12%) |
120,780 |
134,385 |
(10%) |
||||||||||||||||||||||||||||||||||
Americas Wholesale1 |
32,361 |
38,252 |
(15%) |
69,639 |
77,560 |
(10%) |
||||||||||||||||||||||||||||||||||
Licensing |
25,327 |
26,792 |
(5%) |
51,192 |
52,405 |
(2%) |
||||||||||||||||||||||||||||||||||
$ |
546,264 |
$ |
608,571 |
(10%) |
$ |
1,025,088 |
$ |
1,131,112 |
(9%) |
|||||||||||||||||||||||||||||||
Earnings (loss) from operations: |
||||||||||||||||||||||||||||||||||||||||
Americas Retail1 |
$ |
5,244 |
$ |
(4,662) |
212% |
$ |
(1,965) |
$ |
(13,061) |
85% |
||||||||||||||||||||||||||||||
Europe |
18,186 |
24,513 |
(26%) |
14,518 |
17,881 |
(19%) |
||||||||||||||||||||||||||||||||||
Asia |
887 |
2,264 |
(61%) |
5,500 |
5,617 |
(2%) |
||||||||||||||||||||||||||||||||||
Americas Wholesale1 |
4,872 |
5,167 |
(6%) |
11,619 |
12,920 |
(10%) |
||||||||||||||||||||||||||||||||||
Licensing |
22,415 |
24,909 |
(10%) |
45,440 |
47,630 |
(5%) |
||||||||||||||||||||||||||||||||||
Corporate Overhead |
(25,403) |
(22,333) |
14% |
(44,558) |
(43,106) |
3% |
||||||||||||||||||||||||||||||||||
$ |
26,201 |
$ |
29,858 |
(12%) |
$ |
30,554 |
$ |
27,881 |
10% |
|||||||||||||||||||||||||||||||
Operating margins: |
||||||||||||||||||||||||||||||||||||||||
Americas Retail1 |
2.3% |
(1.9%) |
(0.4%) |
(2.8%) |
||||||||||||||||||||||||||||||||||||
Europe |
9.1% |
10.4% |
4.3% |
4.5% |
||||||||||||||||||||||||||||||||||||
Asia |
1.6% |
3.5% |
4.6% |
4.2% |
||||||||||||||||||||||||||||||||||||
Americas Wholesale1 |
15.1% |
13.5% |
16.7% |
16.7% |
||||||||||||||||||||||||||||||||||||
Licensing |
88.5% |
93.0% |
88.8% |
90.9% |
||||||||||||||||||||||||||||||||||||
Total Company |
4.8% |
4.9% |
3.0% |
2.5% |
||||||||||||||||||||||||||||||||||||
Notes |
||||||||||||||||||||||||||||||||||||||||
1 |
Beginning this quarter, the Company has changed the names of its "North American Retail" and "North American Wholesale" segments to "Americas Retail" and "Americas Wholesale" to better reflect that these segments are inclusive of its operations in North America as well as Central and South America. There have been no changes to the underlying reporting in either segment. |
|||||||||||||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries |
|||||||||||||||||||||||||||||||||||||||
Constant Currency Financial Measures |
|||||||||||||||||||||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||||||||||||
August 1, 2015 |
August 2, 2014 |
% change |
|||||||||||||||||||||||||||||||||||||
As Reported |
Foreign |
Constant |
As Reported |
As |
Constant |
||||||||||||||||||||||||||||||||||
Net revenue: |
|||||||||||||||||||||||||||||||||||||||
Americas Retail1 |
$ |
232,456 |
$ |
7,808 |
$ |
240,264 |
$ |
244,000 |
(5%) |
(2%) |
|||||||||||||||||||||||||||||
Europe |
199,375 |
44,643 |
244,018 |
235,260 |
(15%) |
4% |
|||||||||||||||||||||||||||||||||
Asia |
56,745 |
3,677 |
60,422 |
64,267 |
(12%) |
(6%) |
|||||||||||||||||||||||||||||||||
Americas Wholesale1 |
32,361 |
2,439 |
34,800 |
38,252 |
(15%) |
(9%) |
|||||||||||||||||||||||||||||||||
Licensing |
25,327 |
— |
25,327 |
26,792 |
(5%) |
(5%) |
|||||||||||||||||||||||||||||||||
$ |
546,264 |
$ |
58,567 |
$ |
604,831 |
$ |
608,571 |
(10%) |
(1%) |
||||||||||||||||||||||||||||||
Six Months Ended |
|||||||||||||||||||||||||||||||||||||||
August 1, 2015 |
August 2, 2014 |
% change |
|||||||||||||||||||||||||||||||||||||
As Reported |
Foreign |
Constant |
As Reported |
As |
Constant |
||||||||||||||||||||||||||||||||||
Net revenue: |
|||||||||||||||||||||||||||||||||||||||
Americas Retail1 |
$ |
446,705 |
$ |
13,169 |
$ |
459,874 |
$ |
472,344 |
(5%) |
(3%) |
|||||||||||||||||||||||||||||
Europe |
336,772 |
78,392 |
415,164 |
394,418 |
(15%) |
5% |
|||||||||||||||||||||||||||||||||
Asia |
120,780 |
5,562 |
126,342 |
134,385 |
(10%) |
(6%) |
|||||||||||||||||||||||||||||||||
Americas Wholesale1 |
69,639 |
5,012 |
74,651 |
77,560 |
(10%) |
(4%) |
|||||||||||||||||||||||||||||||||
Licensing |
51,192 |
— |
51,192 |
52,405 |
(2%) |
(2%) |
|||||||||||||||||||||||||||||||||
$ |
1,025,088 |
$ |
102,135 |
$ |
1,127,223 |
$ |
1,131,112 |
(9%) |
(0%) |
||||||||||||||||||||||||||||||
Notes |
|||||||||||||||||||||||||||||||||||||||
1 |
Beginning this quarter, the Company has changed the names of its "North American Retail" and "North American Wholesale" segments to "Americas Retail" and "Americas Wholesale" to better reflect that these segments are inclusive of its operations in North America as well as Central and South America. There have been no changes to the underlying reporting in either segment. |
||||||||||||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries |
|||||||||||||||||||||||||||||||||||||||
Selected Condensed Consolidated Balance Sheet Data |
|||||||||||||||||||||||||||||||||||||||
(in thousands) |
|||||||||||||||||||||||||||||||||||||||
August 1, |
January 31, |
August 2, |
|||||||||||||||||||||||||||||||||||||
2015 |
2015 |
2014 |
|||||||||||||||||||||||||||||||||||||
ASSETS |
|||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents |
$ |
470,946 |
$ |
483,483 |
$ |
461,519 |
|||||||||||||||||||||||||||||||||
Short-term investments |
— |
— |
5,019 |
||||||||||||||||||||||||||||||||||||
Receivables, net |
198,735 |
216,205 |
233,906 |
||||||||||||||||||||||||||||||||||||
Inventories |
335,460 |
319,078 |
392,387 |
||||||||||||||||||||||||||||||||||||
Other current assets |
85,013 |
92,593 |
109,475 |
||||||||||||||||||||||||||||||||||||
Property and equipment, net |
241,579 |
259,524 |
309,155 |
||||||||||||||||||||||||||||||||||||
Other assets |
231,879 |
230,522 |
228,958 |
||||||||||||||||||||||||||||||||||||
Total Assets |
$ |
1,563,612 |
$ |
1,601,405 |
$ |
1,740,419 |
|||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||||||||||||||||||||||||||||||||||||||
Current portion of capital lease obligations and borrowings |
$ |
4,840 |
$ |
1,548 |
$ |
1,997 |
|||||||||||||||||||||||||||||||||
Other current liabilities |
314,376 |
300,418 |
358,169 |
||||||||||||||||||||||||||||||||||||
Long-term debt and capital lease obligations |
2,057 |
6,165 |
6,735 |
||||||||||||||||||||||||||||||||||||
Other long-term liabilities |
178,541 |
199,391 |
204,739 |
||||||||||||||||||||||||||||||||||||
Redeemable and nonredeemable noncontrolling interests |
17,345 |
20,027 |
21,289 |
||||||||||||||||||||||||||||||||||||
Guess?, Inc. stockholders' equity |
1,046,453 |
1,073,856 |
1,147,490 |
||||||||||||||||||||||||||||||||||||
Total Liabilities and Stockholders' Equity |
$ |
1,563,612 |
$ |
1,601,405 |
$ |
1,740,419 |
|||||||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries |
||||||||||||||
Condensed Consolidated Cash Flow Data |
||||||||||||||
(in thousands) |
||||||||||||||
Six Months Ended |
||||||||||||||
August 1, |
August 2, |
|||||||||||||
2015 |
2014 |
|||||||||||||
Net cash provided by operating activities |
$ |
56,736 |
$ |
30,363 |
||||||||||
Net cash used in investing activities |
(17,227) |
(32,550) |
||||||||||||
Net cash used in financing activities |
(44,443) |
(40,622) |
||||||||||||
Effect of exchange rates on cash and cash equivalents |
(7,603) |
1,383 |
||||||||||||
Net change in cash and cash equivalents |
(12,537) |
(41,426) |
||||||||||||
Cash and cash equivalents at the beginning of the year |
483,483 |
502,945 |
||||||||||||
Cash and cash equivalents at the end of the period |
$ |
470,946 |
$ |
461,519 |
||||||||||
Supplemental information: |
||||||||||||||
Depreciation and amortization |
$ |
36,443 |
$ |
42,654 |
||||||||||
Rent |
$ |
129,611 |
$ |
142,996 |
Guess?, Inc. and Subsidiaries |
||||||||||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
||||||||||||||
(in thousands) |
||||||||||||||
Six Months Ended |
||||||||||||||
August 1, |
August 2, |
|||||||||||||
2015 |
2014 |
|||||||||||||
Net cash provided by operating activities |
$ |
56,736 |
$ |
30,363 |
||||||||||
Less: Purchases of property and equipment |
(24,963) |
(32,316) |
||||||||||||
Free cash flow |
$ |
31,773 |
$ |
(1,953) |
||||||||||
Guess?, Inc. and Subsidiaries |
|||||||||||||||||||
Retail Store Data |
|||||||||||||||||||
International Store Count |
|||||||||||||||||||
As of August 1, 2015 |
As of August 2, 2014 |
||||||||||||||||||
Total |
Directly Operated |
Total |
Directly Operated |
||||||||||||||||
Region |
Stores |
Stores |
Stores |
Stores |
|||||||||||||||
United States and Canada |
456 |
456 |
488 |
488 |
|||||||||||||||
Europe and the Middle East |
594 |
266 |
615 |
264 |
|||||||||||||||
Asia |
478 |
50 |
495 |
46 |
|||||||||||||||
Central and South America |
95 |
43 |
87 |
39 |
|||||||||||||||
1,623 |
815 |
1,685 |
837 |
||||||||||||||||
Guess?, Inc. and Subsidiaries |
|||||||||||||||||||
Retail Store Data |
|||||||||||||||||||
U.S. and Canada |
|||||||||||||||||||
Six Months Ended |
|||||||||||||||||||
August 1, |
August 2, |
||||||||||||||||||
2015 |
2014 |
||||||||||||||||||
Number of stores at the beginning of the year |
481 |
494 |
|||||||||||||||||
Store openings |
4 |
5 |
|||||||||||||||||
Store closures |
(29) |
(11) |
|||||||||||||||||
Number of stores at the end of the period |
456 |
488 |
|||||||||||||||||
Total store square footage at the end of the period |
2,194,000 |
2,316,000 |
|||||||||||||||||
Guess?, Inc. and Subsidiaries |
|||||||||||||||||||||
Americas Retail Net Revenue |
|||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||||||||
August 1, |
August 2, |
% |
August 1, |
August 2, |
% |
||||||||||||||||
2015 |
2014 |
change |
2015 |
2014 |
change |
||||||||||||||||
Net revenue: |
|||||||||||||||||||||
Retail stores |
$ |
214,224 |
$ |
228,825 |
(6.4%) |
$ |
410,261 |
$ |
441,172 |
(7.0%) |
|||||||||||
E-commerce sites |
18,232 |
15,175 |
20.1% |
36,444 |
31,172 |
16.9% |
|||||||||||||||
Total |
$ |
232,456 |
$ |
244,000 |
(4.7%) |
$ |
446,705 |
$ |
472,344 |
(5.4%) |
|||||||||||
Guess?, Inc. and Subsidiaries |
|||||||
Retail Store Change in Comparable Store Sales |
|||||||
U.S. and Canada |
|||||||
Three Months Ended |
Six Months Ended |
||||||
August 1, 2015 |
August 1, 2015 |
||||||
U.S. Dollars |
Constant |
U.S. Dollars |
Constant |
||||
Excluding e-commerce sales |
(4.6%) |
(1.7%) |
(6.2%) |
(3.7%) |
|||
Impact of e-commerce sales |
1.8% |
1.9% |
1.9% |
1.9% |
|||
Including e-commerce sales |
(2.8%) |
0.2% |
(4.3%) |
(1.8%) |
Contact: |
Guess?, Inc. |
|
Fabrice Benarouche |
||
VP, Finance and Investor Relations |
||
(213) 765-5578 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/guess-inc-reports-second-quarter-results-300133700.html
SOURCE