The Americas are not doing Guess any favors.
Guess, Inc., reported a net earnings decrease of 86.3%, down to $6.6 million from $47.8 million during the same period last year. The brand’s diluted earnings per share also drastically decreased, from $0.57 during the same time last year, to $0.08, an 86 percent decrease.
“Despite continued softness in the Americas, we are pleased to report that fourth quarter revenues for the company were up 3%, driven by strong double digit growth in both Europe and Asia,” said Guess CEO Victor Herrero.
Despite the Americas sales’ revenue decrease of 6.4% in the fourth quarter, Guess saw a needed bump in European and Asian markets. Europe saw a revenue increase of 11.4%, while Asia saw an increase of 26.6%.
“We are encouraged by the progress we are making in these two regions and will continue to allocate the majority of our capital investment there,” Herrero said.
For FY2017, Guess saw equal disappointment in revenues. The company earned $22.8 million, a whopping 72.2% decrease from $81.9 million during the same period last year. Diluted earnings per share also dropped 71.9% to $0.27 during FY2017, from $0.96 last year.
Guess’ net revenue for FY2017 marginally increased 0.2% to $2.21 billion, barely up from $2.2 billion last year.
Americas retail revenues for the year dropped 4.7%, while European revenues increased 8.9% and Asia sales saw a 3.6% increase. Americas wholesale revenues also dropped 5.9% in FY2017.
“As we head into fiscal year 2018, we will build on the good momentum we are experiencing in both Europe and Asia and will continue our retail expansion plan there,” said Herrero. “In the Americas Retail, where the retail environment remains challenging, we are focused on profitability improvements. We will continue to negotiate rent reductions whenever possible and plan to close 60 stores in fiscal 2018. And finally, we will remain focused on implementing supply chain initiatives that should drive profit improvement in fiscal 2018.”
For FY2018 ending in February 2018, Guess expects net revenues to increase between 2-4%, while consolidated net revenues are expected to increase between 4-6%.
Diluted earnings per share are expected to range between $0.28-$0.40 for FY2018.