Guess sales up double-digits on licensing, Americas; earnings slide
Guess Inc announced on Wednesday revenues increased by double-digits for the first quarter fiscal 2023, on the back on a surge in licensing sales and Americas wholesale revenues.
The Los Angeles-based Guess said revenues increased to $593.5 million from $520 million in the same prior-year quarter, up 14%. In constant currency, net revenue increased by 21%.
By category, Americas retail revenues increased 7%, while retail comp sales, including e-commerce, increased 3%. Americas wholesale revenues increased 50%.
Internationally, Europe revenues increased 14% in U.S. dollars and 26% in constant currency, while the region's retail comp sales, including e-commerce, decreased 6% in U.S. dollars and increased 3% in constant currency.
Asia revenues increased 1% in U.S. dollars and 8% in constant currency and the region's retail comp sales, including e-commerce, decreased 11% in U.S. dollars and 5% in constant currency.
Guess' licensing revenues increased 23%, added the company.
“We are very pleased with our first quarter results which exceeded our expectations for top line and operating performance," said Carlos Alberini, chief executive officer, Guess.
"Our company’s revenues finished up 14% in U.S. dollars and 21% 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."
Despite the sales uptick, net earnings for the three months ending April 30 fell to $10.5 million, from $12.9 million in the quarter last year, said Guess.
Looking ahead, Guess said it expects fiscal 2023 revenues to be up around 4% in U.S. dollars (10% in constant currency), "assuming no meaningful Covid-related shutdowns," take place during the 12 months.
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