Guess?, Inc (GES) saw its loss narrow to $21.29 million, or $0.26 a share for the quarter ended Apr. 29, 2017. In the previous year period, the company reported a loss of $25.18 million, or $0.30 a share. On an adjusted basis, net loss for the quarter was almost stable at $19.35 million, when compared with the last year period. Revenue during the quarter went up marginally by 2.18 percent to $458.58 million from $448.82 million in the previous year period. Gross margin for the quarter contracted 27 basis points over the previous year period to 31.54 percent. Operating margin for the quarter stood at negative 5.56 percent as compared to a negative 6.46 percent for the previous year period.
Operating loss for the quarter was $25.52 million, compared with an operating loss of $28.98 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $22.76 million compared to operating loss of $22.74 million in prior year period.
Victor Herrero, Chief Executive Officer, commented, “We are pleased to report that our first quarter results finished above the high-end of our expectations for revenues, adjusted operating margin and earnings per share. We continued to see strong performance in our international businesses. In Europe and in Asia, our revenues were up 23% and 17% driven by new store openings and positive comp sales. We are also encouraged by the trends in adjusted operating margins for these two regions, as they expanded in the quarter relative to last year. In the Americas, as the performance of our business and the environment remain soft, we are more than ever focused on shrinking our footprint and profitability improvements.”
For the second-quarter 2018, Guess?, Inc expects revenue to grow in the range of 2 percent to 4 percent and operating income to grow in the range of 2.20 percent to 3 percent and adjusted operating income to grow in the range of 2.20 percent to 3 percent and expects diluted earnings per share to be in the range of $0.08 to $0.11 and adjusted diluted earnings per share to be in the range of $0.08 to $0.11
For fiscal year 2017, Guess?, Inc expects revenue to grow in the range of 3.50 percent to 5 percent and its operating income to grow in the range of 2.20 percent to 2.90 percent and adjusted operating income to grow in the range of 2.30 percent to 3 percent and expects diluted earnings per share to be in the range of $0.32 to $0.42 and adjusted diluted earnings per share to be in the range of $0.34 to $0.44
Operating cash flow remains negative
Guess?, Inc has spent $29.95 million cash to meet operating activities during the quarter as against cash outgo of $30.71 million in the last year period. The company has spent $19.23 million cash to meet investing activities during the quarter as against cash outgo of $10.09 million in the last year period.
The company has spent $35.96 million cash to carry out financing activities during the quarter as against cash inflow of $3.80 million in the last year period.
Cash and cash equivalents stood at $316.40 million as on Apr. 29, 2017, down 25.99 percent or $111.09 million from $427.48 million on Apr. 30, 2016.
Debt comes down
Guess?, Inc has recorded a decline in total debt over the last one year. It stood at $23.89 million as on Apr. 29, 2017, down 14.61 percent or $4.09 million from $27.98 million on Apr. 30, 2016.
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