Guess annual sales lift on strong Europe gains, the Americas weighs
Guess Inc. announced on Tuesday revenues for the fiscal 2023 increased 4% to $2.69 billion, upheld by sales gains in the fashion brand's European and Asian markets, offsetting sluggish growth in the Americas.
The Los Angeles-based company said fiscal 2023 revenues in its Americas retail remained consistent in U.S. dollars and increased 1% in constant currency. Retail comp sales, including e-commerce, decreased 1% in both U.S. dollars and constant currency. Americas wholesale revenues increased 2% in U.S. dollars and 3% in constant currency.
Elsewhere, Europe revenues increased 6% in U.S. dollars and 21% in constant currency, while Asia revenues increased 1% in U.S. dollars and 12% in constant currency.
For the fourth quarter ending January 28, Guess reported revenues of $817.8 million, up 2%. Americas retail revenues decreased 1% in both U.S. dollars and constant currency, while its Americas wholesale revenues decreased 27% in both U.S. dollars and constant currency.
Europe revenues increased 10% in U.S. dollars and 20% in constant currency and Asia revenues decreased 8% in U.S. dollars and increased 1% in constant currency. Licensing revenues decreased 8% in U.S. dollars and constant currency, added the company.
“We are very pleased with our fourth quarter performance, which exceeded our expectations. Our revenue growth in the period reached 2% in US dollars and 8% in constant currency, driven by strong results in Europe. This performance contributed to better than expected adjusted operating profit and improved earnings per share," said Carlos Alberini, chief executive officer, Guess Inc.
"This performance caps a strong year for our company despite the challenging market conditions we faced. In fact, this year currency fluctuations consumed $62 million of operating profit and 140 basis points of operating margin. We delivered top line growth of 4% in US dollars and 12% in constant currency and achieved GAAP and adjusted operating margins of 9.2% and 9.8%, respectively. We are very proud of our teams, who managed the business well and navigated through a difficult environment very effectively.”
Looking ahead, Guess said it expects fiscal 2024 revenues to increase between 1% and 3%.
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