Total net revenue of Guess for the first quarter (Q1) of fiscal 2023 increased 14 per cent to $593.5 million from $520 million in the same prior-year quarter. In constant currency, net revenue increased by 21 per cent. The company recorded GAAP net earnings of $8 million, a 33.6 per cent decrease from $12 million for the first quarter of fiscal 2022.
GAAP diluted EPS decreased 33.3 per cent to $0.12 for the first quarter of fiscal 2023, compared to $0.18 for the same prior-year quarter. The company estimates a net positive impact from its adoption of new accounting guidance related to the company’s convertible notes and share buybacks of $0.04 and a negative impact from currency of $0.14 on GAAP diluted EPS in the first quarter of fiscal 2023 when compared to the same prior-year quarter.
“We are very pleased with our first quarter results which exceeded our expectations for top line and operating performance. Our company’s revenues finished up 14 per cent in US dollars and 21 per cent in constant currency with Europe, Americas Wholesale and Licensing performing better than expected. Overall, we delivered strong gross margin performance and leveraged expenses effectively, contributing to an expansion in operating margin and a significant increase in earnings from operations compared to the prior year. During the quarter, we continued to prioritise returning value to our shareholders and purchased over 500,000 shares of our stock in open market transactions and entered into a $175 million accelerated share repurchase programme which is presently being executed,” Carlos Alberini, chief executive officer, said.
Total net revenue of Guess for the first quarter of fiscal 2023 increased 14 per cent to $593.5 million from $520.0 million in the same prior-year quarter. In constant currency, net revenue increased by 21 per cent. The company recorded GAAP net earnings of $8.0 million, a 33.6 per cent decrease from $12.0 million for the first quarter of fiscal 2022.
“We have continued to make great progress in enhancing our product offering and I strongly believe that our current collections are the best they have been across all product categories. As always, we stay true to our brand and values and focus on what we can control. During the last few years, we have transformed our business and elevated our brands very successfully and our customers are responding well to our offerings. Today, our company is very well positioned to compete in the current marketplace and gain market share among our different product categories and territories. We are very proud of our teams and highly confident in our future,” Paul Marciano, co-founder and chief creative officer, added.
“As we look at the remainder of the year, we remain focused on carefully managing our business and believe we can deliver about 4 per cent revenue growth and an operating margin above 10 per cent for the current year, which includes a significant unfavourable currency impact versus the prior year due to the stronger US dollar. While the environment remains challenging, we are well positioned to grow and capitalise on our diversified business model and the strong momentum of our Guess and Marciano brands,” Alberini concluded.
Fibre2Fashion News Desk (RR)