Q4 Fiscal 2020 Revenues Increased 1% to
Q4 Fiscal 2020 GAAP EPS of
Fiscal Year 2020 Revenues Increased 3% to
Fiscal Year 2020 GAAP EPS of
Adjusted Amounts
This press release contains certain non-GAAP, or adjusted, financial measures. References to “adjusted” results exclude the impact of (i) asset impairment charges, (ii) net gains on lease terminations, (iii) certain professional service and legal fees and related (credits) costs, (iv) charges related to the
Share Repurchases. The Company has used substantially all of the net proceeds from its
Fourth Quarter Fiscal 2020 Results
For the fourth quarter of fiscal 2020, the Company recorded GAAP net earnings of
For the fourth quarter of fiscal 2020, the Company recorded adjusted net earnings of
Net Revenue. Total net revenue for the fourth quarter of fiscal 2020 increased 0.6% to
-
Americas Retail revenues decreased 4.1% in
U.S. dollars and 4.4% in constant currency. Retail comp sales including e-commerce decreased 3% inU.S. dollars and constant currency. -
Americas Wholesale revenues decreased 3.0% in
U.S. dollars and 3.8% in constant currency. -
Europe revenues increased 13.2% inU.S. dollars and 15.8% in constant currency. Retail comp sales including e-commerce increased 1% inU.S. dollars and 3% in constant currency. -
Asia revenues decreased 27.7% inU.S. dollars and 26.4% in constant currency. Retail comp sales including e-commerce decreased 26% inU.S. dollars and 25% in constant currency. -
Licensing revenues increased 22.7% in
U.S. dollars.
Operating Earnings. GAAP earnings from operations for the fourth quarter of fiscal 2020 increased 44.6% to
For the fourth quarter of fiscal 2020, adjusted earnings from operations increased 32.2% to
- Operating margin for the Company’s Americas Retail segment decreased 240 basis points to 6.4% in the fourth quarter of fiscal 2020, from 8.8% in the same prior-year quarter, driven primarily by the unfavorable impact from higher markdowns and negative comparable sales, partially offset by higher initial markups.
- Operating margin for the Company’s Americas Wholesale segment increased 60 basis points to 19.6% in the fourth quarter of fiscal 2020, compared to 19.0% in the same prior-year quarter, driven primarily by lower markdowns, partially offset by overall deleveraging of expenses.
-
Operating margin for the Company’s
Europe segment increased 790 basis points to 18.9% in the fourth quarter of fiscal 2020, compared to 11.0% in the same prior-year quarter, driven primarily by lower logistics costs, higher initial markups, overall leveraging of expenses as well as lower markdowns. -
Operating margin for the Company’s
Asia segment decreased 200 basis points to 1.6% in the fourth quarter of fiscal 2020, from 3.6% in the same prior-year quarter, driven primarily by deleveraging of expenses due mainly to negative comparable sales, partially offset by higher product margins. - Operating margin for the Company’s Licensing segment increased 30 basis points to 87.1% in the fourth quarter of fiscal 2020, compared to 86.8% in the same prior-year quarter.
Other income, net, was
Full Fiscal Year Results
For the fiscal year ended
For the fiscal year ended
Net Revenue. Total net revenue for fiscal 2020 increased 2.6% to
-
Americas Retail revenues decreased 1.6% in
U.S. dollars and 1.3% in constant currency. Retail comp sales including e-commerce were relatively flat inU.S. dollars and constant currency. -
Americas Wholesale revenues increased 9.1% in
U.S. dollars and 9.7% in constant currency. -
Europe revenues increased 9.2% inU.S. dollars and 14.1% in constant currency. Retail comp sales including e-commerce were relatively flat inU.S. dollars and increased 4% in constant currency. -
Asia revenues decreased 10.8% inU.S. dollars and 7.5% in constant currency. Retail comp sales including e-commerce decreased 19% inU.S. dollars and 16% in constant currency. -
Licensing revenues increased 3.2% in
U.S. dollars.
Operating Earnings. GAAP earnings from operations for fiscal 2020 increased 169.4% to
For the fiscal year ended
- Operating margin for the Company’s Americas Retail segment decreased 60 basis points to 2.7% in fiscal 2020, compared to 3.3% in the prior year, driven primarily by the unfavorable impact from higher markdowns and store payroll pressures, partially offset by higher initial markups.
- Operating margin for the Company’s Americas Wholesale segment increased 160 basis points to 19.1% in fiscal 2020, compared to 17.5% in the prior year. The increase in operating margin was due primarily to lower markdowns and higher initial markups.
-
Operating margin for the Company’s
Europe segment increased 560 basis points to 10.7% in fiscal 2020, compared to 5.1% in the prior year. This increase was driven primarily by higher initial markups, lower logistics costs and overall leveraging of expenses. -
Operating margin for the Company’s
Asia segment decreased 580 basis points to negative 2.6% in fiscal 2020, from 3.2% in the prior year, driven primarily by deleveraging of expenses due mainly to negative comparable sales and higher markdowns. - Operating margin for the Company’s Licensing segment decreased 100 basis points to 86.7% in fiscal 2020, from 87.7% in the prior year.
Other expense, net, was
Recent Developments
The outbreak of the coronavirus (or “COVID-19”) is having a material impact on the Company’s financial performance. The outbreak is ongoing and dynamic in nature and, to date, the Company has experienced temporary closures in key regions globally, along with other major retailers. The extent and duration of the crisis remains uncertain and may impact consumer purchasing activity throughout the year if disruptions continue. We are monitoring the situation closely with regards to our employees, consumers and supply chain. Given the dynamic situation, we have not provided guidance for the first quarter ending
Due to the developing situation, the results of the first quarter ending
During
Presentation of Non-GAAP Information
The financial information presented in this release includes non-GAAP financial measures such as adjusted results, constant currency financial information and free cash flow measures. For the three months and fiscal year ended
The Company has excluded these items from its adjusted financial measures primarily because it believes these items are not indicative of the underlying performance of its business and that the adjusted financial information provided is useful for investors to evaluate the comparability of the Company’s operating results and its future outlook (when reviewed in conjunction with the Company’s GAAP financial statements). A reconciliation of reported GAAP results to comparable non-GAAP results is provided in the accompanying tables.
This release also 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
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 (i) purchases of property and equipment and (ii) payments for property and equipment under finance leases. Free cash flows are 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 and payments for property and equipment under finance leases. 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?
Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, eyewear, footwear and other related consumer products. Guess? products are distributed through branded Guess? stores as well as better department and specialty stores around the world. As of
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, business strategies and strategic initiatives; statements expressing optimism or pessimism about future operating results, growth opportunities, earnings, capital expenditures, operating margins, cost reduction opportunities and cash needs; and statements concerning the potential impacts related to the COVID-19 outbreak 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, which are frequently indicated by terms such as “expect,” “could,” “will,” “should,” “goal,” “strategy,” “believe,” “estimate,” “continue,” “outlook,” “plan,” “create,” “see,” and similar terms, 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, among others: our ability to maintain our brand image and reputation; domestic and international economic or political conditions, including economic and other events that could negatively impact consumer confidence and discretionary consumer spending; the continuation or worsening of impacts related to the COVID-19 outbreak, including business, financial, human capital and other impacts to the Company and its partners; changes in the competitive marketplace and in our commercial relationships; our ability to anticipate and adapt to changing consumer preferences and trends; our ability to manage our inventory commensurate with customer demand; risks related to the timing and costs of delivering merchandise to our stores and our wholesale customers; unexpected or unseasonable weather conditions; our ability to effectively operate our various retail concepts, including securing, renewing, modifying or terminating leases for store locations; our ability to successfully and/or timely implement our growth strategies and other strategic initiatives; our ability to expand internationally and operate in regions where we have less experience, including through joint ventures; risks related to our convertible senior notes issued in
Guess?, Inc. and Subsidiaries |
|||||||||||||||||||||||
Condensed Consolidated Statements of Income |
|||||||||||||||||||||||
(amounts in thousands, except per share data) |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
$ |
% |
|
$ |
% |
|
$ |
% |
|
$ |
% |
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Product sales |
$ |
815,975 |
|
96.9 |
% |
|
$ |
815,712 |
|
97.4 |
% |
|
$ |
2,592,262 |
|
96.8 |
% |
|
$ |
2,526,500 |
|
96.8 |
% |
Net royalties |
26,279 |
|
3.1 |
% |
|
21,415 |
|
2.6 |
% |
|
85,847 |
|
3.2 |
% |
|
83,194 |
|
3.2 |
% |
||||
Net revenue |
842,254 |
|
100.0 |
% |
|
837,127 |
|
100.0 |
% |
|
2,678,109 |
|
100.0 |
% |
|
2,609,694 |
|
100.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cost of product sales |
503,660 |
|
59.8 |
% |
|
531,035 |
|
63.4 |
% |
|
1,662,401 |
|
62.1 |
% |
|
1,670,090 |
|
64.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit |
338,594 |
|
40.2 |
% |
|
306,092 |
|
36.6 |
% |
|
1,015,708 |
|
37.9 |
% |
|
939,604 |
|
36.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Selling, general and administrative expenses |
237,237 |
|
28.1 |
% |
|
234,562 |
|
28.0 |
% |
|
865,060 |
|
32.2 |
% |
|
835,293 |
|
32.0 |
% |
||||
|
— |
|
— |
% |
|
3,209 |
|
0.4 |
% |
|
— |
|
— |
% |
|
45,637 |
|
1.7 |
% |
||||
Asset impairment charges |
4,851 |
|
0.6 |
% |
|
1,922 |
|
0.2 |
% |
|
9,977 |
|
0.4 |
% |
|
6,939 |
|
0.3 |
% |
||||
Net gains on lease terminations |
— |
|
— |
% |
|
(325 |
) |
(0.0 |
%) |
|
— |
|
— |
% |
|
(477 |
) |
(0.0 |
%) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings from operations |
96,506 |
|
11.5 |
% |
|
66,724 |
|
8.0 |
% |
|
140,671 |
|
5.3 |
% |
|
52,212 |
|
2.0 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense |
(4,973 |
) |
(0.6 |
%) |
|
(1,021 |
) |
(0.1 |
%) |
|
(16,129 |
) |
(0.6 |
%) |
|
(3,407 |
) |
(0.1 |
%) |
||||
Interest income |
563 |
|
0.1 |
% |
|
1,602 |
|
0.2 |
% |
|
1,729 |
|
0.1 |
% |
|
4,494 |
|
0.2 |
% |
||||
Other income (expense), net |
1,817 |
|
0.2 |
% |
|
473 |
|
0.0 |
% |
|
(2,529 |
) |
(0.2 |
%) |
|
(6,591 |
) |
(0.3 |
%) |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings before income tax expense |
93,913 |
|
11.2 |
% |
|
67,778 |
|
8.1 |
% |
|
123,742 |
|
4.6 |
% |
|
46,708 |
|
1.8 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income tax expense |
11,864 |
|
1.5 |
% |
|
42,543 |
|
5.1 |
% |
|
22,513 |
|
0.8 |
% |
|
29,542 |
|
1.1 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net earnings |
82,049 |
|
9.7 |
% |
|
25,235 |
|
3.0 |
% |
|
101,229 |
|
3.8 |
% |
|
17,166 |
|
0.7 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net earnings attributable to noncontrolling interests |
2,445 |
|
0.2 |
% |
|
2,003 |
|
0.2 |
% |
|
5,254 |
|
0.2 |
% |
|
3,067 |
|
0.2 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net earnings attributable to Guess?, Inc. |
$ |
79,604 |
|
9.5 |
% |
|
$ |
23,232 |
|
2.8 |
% |
|
$ |
95,975 |
|
3.6 |
% |
|
$ |
14,099 |
|
0.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net earnings per common share attributable to common stockholders: |
|||||||||||||||||||||||
Basic |
$ |
1.21 |
|
|
|
$ |
0.29 |
|
|
|
$ |
1.35 |
|
|
|
$ |
0.17 |
|
|
||||
Diluted |
$ |
1.18 |
|
|
|
$ |
0.28 |
|
|
|
$ |
1.33 |
|
|
|
$ |
0.16 |
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Weighted average common shares outstanding attributable to common stockholders: |
|||||||||||||||||||||||
Basic |
65,019 |
|
|
|
80,382 |
|
|
|
70,461 |
|
|
|
80,146 |
|
|
||||||||
Diluted |
66,653 |
|
|
|
81,959 |
|
|
|
71,669 |
|
|
|
81,589 |
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effective tax rate |
12.6 |
% |
|
|
62.8 |
% |
|
|
18.2 |
% |
|
|
63.2 |
% |
|
||||||||
Adjusted selling, general and administrative expenses1: |
$ |
236,919 |
|
28.1 |
% |
|
$ |
229,171 |
|
27.4 |
% |
|
$ |
865,479 |
|
32.3 |
% |
|
$ |
823,988 |
|
31.6 |
% |
Adjusted earnings from operations1: |
$ |
101,675 |
|
12.1 |
% |
|
$ |
76,921 |
|
9.2 |
% |
|
$ |
150,229 |
|
5.6 |
% |
|
$ |
115,616 |
|
4.4 |
% |
Adjusted net earnings attributable to Guess?, Inc.1: |
$ |
82,336 |
|
9.8 |
% |
|
$ |
58,236 |
|
7.0 |
% |
|
$ |
105,036 |
|
3.9 |
% |
|
$ |
80,411 |
|
3.1 |
% |
Adjusted diluted earnings per common share attributable to common stockholders1: |
$ |
1.22 |
|
|
|
$ |
0.70 |
|
|
|
$ |
1.45 |
|
|
|
$ |
0.98 |
|
|
||||
Adjusted effective tax rate1: |
16.5 |
% |
|
|
22.7 |
% |
|
|
21.7 |
% |
|
|
24.2 |
% |
|
||||||||
______________________________________________________________________ |
Notes: |
|
1 |
The adjusted results for the three months and fiscal year ended |
Guess?, Inc. and Subsidiaries |
Reconciliation of GAAP Results to Adjusted Results |
(dollars in thousands) |
The following table provides reconciliations of reported GAAP selling, general and administrative expenses to adjusted selling, general and administrative expenses, 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 three months and fiscal year ended
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
|
|
|
|
|
|
|
|
||||||||
Reported GAAP selling, general and administrative expenses |
$ |
237,237 |
|
|
$ |
234,562 |
|
|
$ |
865,060 |
|
|
$ |
835,293 |
|
Certain professional service and legal fees and related credits (costs)1 |
120 |
|
|
(165 |
) |
|
857 |
|
|
(6,079 |
) |
||||
CEO separation charges2 |
(438 |
) |
|
(5,226 |
) |
|
(438 |
) |
|
(5,226 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted selling, general and administrative expenses |
$ |
236,919 |
|
|
$ |
229,171 |
|
|
$ |
865,479 |
|
|
$ |
823,988 |
|
|
|
|
|
|
|
|
|
||||||||
Reported GAAP earnings from operations |
$ |
96,506 |
|
|
$ |
66,724 |
|
|
$ |
140,671 |
|
|
$ |
52,212 |
|
Certain professional service and legal fees and related (credits) costs1 |
(120 |
) |
|
165 |
|
|
(857 |
) |
|
6,079 |
|
||||
CEO separation charges2 |
438 |
|
|
5,226 |
|
|
438 |
|
|
5,226 |
|
||||
|
— |
|
|
3,209 |
|
|
— |
|
|
45,637 |
|
||||
Asset impairment charges4 |
4,851 |
|
|
1,922 |
|
|
9,977 |
|
|
6,939 |
|
||||
Net gains on lease terminations5 |
— |
|
|
(325 |
) |
|
— |
|
|
(477 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted earnings from operations |
$ |
101,675 |
|
|
$ |
76,921 |
|
|
$ |
150,229 |
|
|
$ |
115,616 |
|
|
|
|
|
|
|
|
|
||||||||
Reported GAAP net earnings attributable to Guess?, Inc. |
$ |
79,604 |
|
|
$ |
23,232 |
|
|
$ |
95,975 |
|
|
$ |
14,099 |
|
Certain professional service and legal fees and related (credits) costs1 |
(120 |
) |
|
165 |
|
|
(857 |
) |
|
6,079 |
|
||||
CEO separation charges2 |
438 |
|
|
5,226 |
|
|
438 |
|
|
5,226 |
|
||||
|
— |
|
|
3,209 |
|
|
— |
|
|
45,637 |
|
||||
Asset impairment charges4 |
4,851 |
|
|
1,922 |
|
|
9,977 |
|
|
6,939 |
|
||||
Net gains on lease terminations5 |
— |
|
|
(325 |
) |
|
— |
|
|
(477 |
) |
||||
Amortization of debt discount6 |
2,449 |
|
|
— |
|
|
7,558 |
|
|
— |
|
||||
Change in provisional Tax Reform adjustment7 |
— |
|
|
25,837 |
|
|
— |
|
|
6,286 |
|
||||
Income tax adjustments8 |
(4,886 |
) |
|
(1,030 |
) |
|
(8,055 |
) |
|
(3,378 |
) |
||||
|
|
|
|
|
|
|
|
||||||||
Total adjustments affecting net earnings attributable to Guess?, Inc. |
2,732 |
|
|
35,004 |
|
|
9,061 |
|
|
66,312 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted net earnings attributable to Guess?, Inc. |
$ |
82,336 |
|
|
$ |
58,236 |
|
|
$ |
105,036 |
|
|
$ |
80,411 |
|
|
|
|
|
|
|
|
|
||||||||
Reported GAAP income tax expense |
$ |
11,864 |
|
|
$ |
42,543 |
|
|
$ |
22,513 |
|
|
$ |
29,542 |
|
Change in provisional Tax Reform adjustment7 |
— |
|
|
(25,837 |
) |
|
— |
|
|
(6,286 |
) |
||||
Income tax adjustments8 |
4,886 |
|
|
1,030 |
|
|
8,055 |
|
|
3,378 |
|
||||
|
|
|
|
|
|
|
|
||||||||
Adjusted income tax expense |
$ |
16,750 |
|
|
$ |
17,736 |
|
|
$ |
30,568 |
|
|
$ |
26,634 |
|
|
|
|
|
|
|
|
|
||||||||
Adjusted effective tax rate |
16.5 |
% |
|
22.7 |
% |
|
21.7 |
% |
|
24.2 |
% |
||||
______________________________________________________________________ |
Notes: |
|
1 |
During the three months and fiscal years ended |
2 |
On |
3 |
During the quarter ended |
4 |
During the three months and fiscal years ended |
5 |
During the three months and fiscal year ended |
6 |
In |
7 |
During the three months ended |
8 |
The income tax effect of certain professional service and legal fees and related (credits) costs, CEO separation charges, the |
Guess?, Inc. and Subsidiaries |
|||||||||||||||||||||
Consolidated Segment Data |
|||||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Fiscal Year Ended |
||||||||||||||||||
|
|
|
|
|
% change |
|
|
|
|
|
% change |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net revenue: |
|
|
|
|
|
|
|
||||||||||||||
Americas Retail |
$ |
258,334 |
|
|
$ |
269,284 |
|
|
(4 |
%) |
|
$ |
811,547 |
|
|
$ |
824,674 |
|
|
(2 |
%) |
Americas Wholesale |
41,884 |
|
|
43,182 |
|
|
(3 |
%) |
|
186,389 |
|
|
170,812 |
|
|
9 |
% |
||||
|
420,297 |
|
|
371,298 |
|
|
13 |
% |
|
1,248,114 |
|
|
1,142,768 |
|
|
9 |
% |
||||
|
95,460 |
|
|
131,948 |
|
|
(28 |
%) |
|
346,212 |
|
|
388,246 |
|
|
(11 |
%) |
||||
Licensing |
26,279 |
|
|
21,415 |
|
|
23 |
% |
|
85,847 |
|
|
83,194 |
|
|
3 |
% |
||||
Total net revenue |
$ |
842,254 |
|
|
$ |
837,127 |
|
|
1 |
% |
|
$ |
2,678,109 |
|
|
$ |
2,609,694 |
|
|
3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings (loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Americas Retail |
$ |
16,533 |
|
|
$ |
23,831 |
|
|
(31 |
%) |
|
$ |
22,279 |
|
|
$ |
27,532 |
|
|
(19 |
%) |
Americas Wholesale |
8,222 |
|
|
8,192 |
|
|
0 |
% |
|
35,674 |
|
|
29,935 |
|
|
19 |
% |
||||
|
79,336 |
|
|
40,690 |
|
|
95 |
% |
|
134,078 |
|
|
58,298 |
|
|
130 |
% |
||||
|
1,541 |
|
|
4,728 |
|
|
(67 |
%) |
|
(8,894 |
) |
|
12,365 |
|
|
(172 |
%) |
||||
Licensing |
22,896 |
|
|
18,577 |
|
|
23 |
% |
|
74,459 |
|
|
72,986 |
|
|
2 |
% |
||||
Total segment earnings from operations |
128,528 |
|
|
96,018 |
|
|
34 |
% |
|
257,596 |
|
|
201,116 |
|
|
28 |
% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Corporate overhead |
(27,171 |
) |
|
(24,488 |
) |
|
11 |
% |
|
(106,948 |
) |
|
(96,805 |
) |
|
10 |
% |
||||
|
— |
|
|
(3,209 |
) |
|
|
|
— |
|
|
(45,637 |
) |
|
|
||||||
Asset impairment charges |
(4,851 |
) |
|
(1,922 |
) |
|
152 |
% |
|
(9,977 |
) |
|
(6,939 |
) |
|
44 |
% |
||||
Net gains on lease terminations |
— |
|
|
325 |
|
|
|
|
— |
|
|
477 |
|
|
|
||||||
Total earnings from operations |
$ |
96,506 |
|
|
$ |
66,724 |
|
|
45 |
% |
|
$ |
140,671 |
|
|
$ |
52,212 |
|
|
169 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Operating margins: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Americas Retail |
6.4 |
% |
|
8.8 |
% |
|
|
|
2.7 |
% |
|
3.3 |
% |
|
|
||||||
Americas Wholesale |
19.6 |
% |
|
19.0 |
% |
|
|
|
19.1 |
% |
|
17.5 |
% |
|
|
||||||
|
18.9 |
% |
|
11.0 |
% |
|
|
|
10.7 |
% |
|
5.1 |
% |
|
|
||||||
|
1.6 |
% |
|
3.6 |
% |
|
|
|
(2.6 |
%) |
|
3.2 |
% |
|
|
||||||
Licensing |
87.1 |
% |
|
86.8 |
% |
|
|
|
86.7 |
% |
|
87.7 |
% |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP operating margin for total Company |
11.5 |
% |
|
8.0 |
% |
|
|
|
5.3 |
% |
|
2.0 |
% |
|
|
||||||
Certain professional service and legal fees and related (credits) costs |
(0.0 |
%) |
|
0.0 |
% |
|
|
|
(0.1 |
%) |
|
0.2 |
% |
|
|
||||||
CEO separation charges |
0.0 |
% |
|
0.6 |
% |
|
|
|
0.0 |
% |
|
0.2 |
% |
|
|
||||||
|
— |
% |
|
0.4 |
% |
|
|
|
— |
% |
|
1.7 |
% |
|
|
||||||
Asset impairment charges |
0.6 |
% |
|
0.2 |
% |
|
|
|
0.4 |
% |
|
0.3 |
% |
|
|
||||||
Net gains on lease terminations |
— |
% |
|
(0.0 |
%) |
|
|
|
— |
% |
|
(0.0 |
%) |
|
|
||||||
Adjusted operating margin for total Company |
12.1 |
% |
|
9.2 |
% |
|
|
|
5.6 |
% |
|
4.4 |
% |
|
|
Guess?, Inc. and Subsidiaries |
|||||||||||||||||||
Constant Currency Financial Measures |
|||||||||||||||||||
(dollars in thousands) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
|
|
|
||||||||||||||
|
|
|
|
|
% change |
||||||||||||||
|
As Reported |
|
Foreign Currency Impact |
|
Constant Currency |
|
As Reported |
|
As Reported |
|
Constant Currency |
||||||||
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Americas Retail |
$ |
258,334 |
|
|
$ |
(865 |
) |
|
$ |
257,469 |
|
|
$ |
269,284 |
|
|
(4%) |
|
(4%) |
Americas Wholesale |
41,884 |
|
|
(332 |
) |
|
41,552 |
|
|
43,182 |
|
|
(3%) |
|
(4%) |
||||
|
420,297 |
|
|
9,845 |
|
|
430,142 |
|
|
371,298 |
|
|
13% |
|
16% |
||||
|
95,460 |
|
|
1,690 |
|
|
97,150 |
|
|
131,948 |
|
|
(28%) |
|
(26%) |
||||
Licensing |
26,279 |
|
|
— |
|
|
26,279 |
|
|
21,415 |
|
|
23% |
|
23% |
||||
Total net revenue |
$ |
842,254 |
|
|
$ |
10,338 |
|
|
$ |
852,592 |
|
|
$ |
837,127 |
|
|
1% |
|
2% |
|
Fiscal Year Ended |
|
|
|
|
||||||||||||||
|
|
|
|
|
% change |
||||||||||||||
|
As Reported |
|
Foreign Currency Impact |
|
Constant Currency |
|
As Reported |
|
As Reported |
|
Constant Currency |
||||||||
Net revenue: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Americas Retail |
$ |
811,547 |
|
|
$ |
2,061 |
|
|
$ |
813,608 |
|
|
$ |
824,674 |
|
|
(2%) |
|
(1%) |
Americas Wholesale |
186,389 |
|
|
1,048 |
|
|
187,437 |
|
|
170,812 |
|
|
9% |
|
10% |
||||
|
1,248,114 |
|
|
56,155 |
|
|
1,304,269 |
|
|
1,142,768 |
|
|
9% |
|
14% |
||||
|
346,212 |
|
|
12,938 |
|
|
359,150 |
|
|
388,246 |
|
|
(11%) |
|
(7%) |
||||
Licensing |
85,847 |
|
|
— |
|
|
85,847 |
|
|
83,194 |
|
|
3% |
|
3% |
||||
Total net revenue |
$ |
2,678,109 |
|
|
$ |
72,202 |
|
|
$ |
2,750,311 |
|
|
$ |
2,609,694 |
|
|
3% |
|
5% |
Guess?, Inc. and Subsidiaries |
|||||||
Selected Condensed Consolidated Balance Sheet Data |
|||||||
(in thousands) |
|||||||
|
|
|
|
||||
|
|
|
|
||||
|
|
|
|
||||
ASSETS |
|||||||
|
|
|
|
||||
Cash and cash equivalents |
$ |
284,613 |
|
|
$ |
210,460 |
|
|
|
|
|
||||
Receivables, net |
327,281 |
|
|
321,995 |
|
||
|
|
|
|
||||
Inventories |
393,129 |
|
|
468,897 |
|
||
|
|
|
|
||||
Other current assets |
59,212 |
|
|
87,343 |
|
||
|
|
|
|
||||
Property and equipment, net |
288,112 |
|
|
315,558 |
|
||
|
|
|
|
||||
Restricted cash |
215 |
|
|
535 |
|
||
|
|
|
|
||||
Operating lease right-of-use assets1 |
851,990 |
|
|
— |
|
||
|
|
|
|
||||
Other assets1 |
224,410 |
|
|
244,417 |
|
||
|
|
|
|
||||
Total assets |
$ |
2,428,962 |
|
|
$ |
1,649,205 |
|
|
|
|
|
||||
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
|
|
|
|
||||
Current portion of borrowings and finance lease obligations |
$ |
9,490 |
|
|
$ |
4,315 |
|
|
|
|
|
||||
Current operating lease liabilities1 |
192,066 |
|
|
— |
|
||
|
|
|
|
||||
Other current liabilities |
436,857 |
|
|
539,049 |
|
||
|
|
|
|
||||
Long-term debt and finance lease obligations |
32,770 |
|
|
35,012 |
|
||
|
|
|
|
||||
Convertible senior notes, net |
247,363 |
|
|
— |
|
||
|
|
|
|
||||
Long-term operating lease liabilities1 |
714,079 |
|
|
— |
|
||
|
|
|
|
||||
Other long-term liabilities1 |
130,259 |
|
|
212,331 |
|
||
|
|
|
|
||||
Redeemable and nonredeemable noncontrolling interests |
26,364 |
|
|
21,271 |
|
||
|
|
|
|
||||
Guess?, Inc. stockholders’ equity |
639,714 |
|
|
837,227 |
|
||
|
|
|
|
||||
Total liabilities and stockholders’ equity |
$ |
2,428,962 |
|
|
$ |
1,649,205 |
|
______________________________________________________________________ |
Notes: |
|
1 |
During the quarter ended |
Guess?, Inc. and Subsidiaries |
||||||||||||||
Condensed Consolidated Cash Flow Data |
||||||||||||||
(in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
Fiscal Year Ended |
||||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities |
|
|
$ |
197,913 |
|
|
$ |
81,679 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash used in investing activities |
|
|
(56,471 |
) |
|
(123,528 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash used in financing activities |
|
|
(64,165 |
) |
|
(96,818 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Effect of exchange rates on cash, cash equivalents and restricted cash |
|
(3,444 |
) |
|
(18,020 |
) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Net change in cash, cash equivalents and restricted cash |
|
|
73,833 |
|
|
(156,687 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Cash, cash equivalents and restricted cash at the beginning of the year |
|
210,995 |
|
|
367,682 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Cash, cash equivalents and restricted cash at the end of the year |
|
$ |
284,828 |
|
|
$ |
210,995 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Supplemental information: |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
$ |
72,188 |
|
|
$ |
68,357 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||
Total lease costs1 |
|
|
$ |
368,435 |
$ |
356,908 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Non-cash investing and financing activity: |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Assets acquired under finance leases2 |
|
|
$ |
3,070 |
|
|
$ |
1,172 |
|
|||||
______________________________________________________________________ |
Notes: |
|
1 |
In connection with the adoption of new lease guidance during the first quarter of fiscal 2020, the Company has elected to include non-lease components, which is inclusive of common area maintenance charges, in the measurement of its lease liabilities for its directly operated real estate leases. Therefore, total lease costs include lease and non-lease components related to the Company’s directly operated real estate leases for the fiscal years ended |
2 |
During the fiscal years ended |
Guess?, Inc. and Subsidiaries |
||||||||||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
||||||||||||||
(in thousands) |
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
Fiscal Year Ended |
||||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities |
|
|
$ |
197,913 |
|
|
$ |
81,679 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Purchases of property and equipment |
|
|
(61,868 |
) |
|
(108,117 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Less: Payments for property and equipment under finance leases |
|
|
(2,733 |
) |
|
(1,387 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
||||
Free cash flow |
|
|
$ |
133,312 |
|
|
$ |
(27,825 |
) |
Guess?, Inc. and Subsidiaries |
|||||||||||
Retail Store Data |
|||||||||||
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
||||||||||
|
Stores |
|
Concessions |
||||||||
Region |
Total |
|
Directly Operated |
|
Partner Operated |
|
Total |
|
Directly Operated |
|
Partner Operated |
|
|
|
|
|
|
|
|
|
|
|
|
|
282 |
|
280 |
|
2 |
|
1 |
|
— |
|
1 |
|
80 |
|
80 |
|
— |
|
— |
|
— |
|
— |
Central and |
113 |
|
73 |
|
40 |
|
27 |
|
27 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
475 |
|
433 |
|
42 |
|
28 |
|
27 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
745 |
|
517 |
|
228 |
|
39 |
|
39 |
|
— |
|
509 |
|
219 |
|
290 |
|
327 |
|
117 |
|
210 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
1,729 |
|
1,169 |
|
560 |
|
394 |
|
183 |
|
211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
||||||||||
|
Stores |
|
Concessions |
||||||||
Region |
Total |
|
Directly Operated |
|
Partner Operated |
|
Total |
|
Directly Operated |
|
Partner Operated |
|
|
|
|
|
|
|
|
|
|
|
|
|
290 |
|
288 |
|
2 |
|
1 |
|
— |
|
1 |
|
89 |
|
89 |
|
— |
|
— |
|
— |
|
— |
Central and |
104 |
|
67 |
|
37 |
|
27 |
|
27 |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
483 |
|
444 |
|
39 |
|
28 |
|
27 |
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
700 |
|
490 |
|
210 |
|
37 |
|
37 |
|
— |
|
536 |
|
227 |
|
309 |
|
358 |
|
174 |
|
184 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
1,719 |
|
1,161 |
|
558 |
|
423 |
|
238 |
|
185 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200318005728/en/
Guess?, Inc.
Fabrice Benarouche
VP, Finance and Investor Relations
(213) 765-5578
Source: Guess?, Inc.