LOS ANGELES, March 18, 2015 /PRNewswire/ -- Guess?, Inc.
(NYSE: GES) today reported unaudited financial results for its
fourth quarter and fiscal year ended January
31, 2015.
Fourth Quarter Fiscal 2015 Highlights
- North American Retail revenues decreased 4%; retail
comp sales including e-commerce decreased 5% in U.S. dollars and 3%
in constant currency
- European revenues decreased 16% in U.S. dollars and 5%
in constant currency
- Asian revenues decreased 9% in U.S. dollars and 7% in
constant currency
- North American Wholesale revenues decreased 10% in
U.S. dollars and 7% in constant currency
- Adjusted operating earnings decreased 30%; GAAP
operating earnings decreased 29%
Fiscal Year 2015 Highlights
- Global revenues decreased 6% at $2.4 billion in U.S. dollars; decreased 5% in
constant currency
- Adjusted operating earnings
decreased 46%; GAAP operating earnings
decreased 43%
This press release contains certain non-GAAP, or adjusted,
financial measures, which exclude the impact of restructuring
charges (and related taxes where applicable) recorded during the
three and twelve months ended February 1,
2014. A reconciliation of reported GAAP results to
comparable non-GAAP results is provided in the accompanying tables
and discussed under the heading "Presentation of Non-GAAP
Information" below.
Fourth Quarter Fiscal 2015 Results
For the fourth quarter of fiscal 2015, the Company recorded net
earnings of $53.9 million, a 24.1%
decrease compared to adjusted net earnings of $71.1 million for the fourth quarter of fiscal
2014. Diluted earnings per share decreased 24.1%, to $0.63, compared to adjusted diluted earnings per
share of $0.83 for the prior-year
quarter. The prior-year adjusted net earnings excluded
restructuring charges of $2.1 million
($1.4 million net of taxes). On a
GAAP basis, prior-year fourth quarter net earnings were
$69.6 million and diluted earnings
per share totaled $0.82, including an
unfavorable $0.01 after-tax impact
from the restructuring charges.
Paul Marciano, Chief Executive
Officer, commented, "Overall fourth quarter results were in line
with our expectations. In North
America, we were pleased by the emerging trends, as comps
and traffic improved in the back-end of the quarter. Our E-commerce
business continues to show strength, with 37% growth in the quarter
and almost $80 million in revenues
for the full year. In terms of products, our Marciano line
resonated very well with our customers, posting double digit
positive comps in the quarter, and our handbags and footwear also
performed well."
Mr. Marciano continued, "Turning to the outlook for fiscal year
2016, currencies will definitely be a headwind if they stay at
current levels. But, as always, we will remain focused on what we
can control, like our North
America real estate realignment, providing a unique
customer experience within our stores, and tightly managing our
costs and inventory levels. We will continue investing in our
omni-channel strategy globally and expect it to be a growth vehicle
for fiscal 2016. We will also continue to leverage the Marciano
brand in our North America Guess stores, and I am
very confident in our upcoming product lines for fiscal
2016. Of course, all of these efforts are done with two key
priorities in mind: improve the profitability of the Company while
at the same time protecting our key asset, the Guess Brand."
Total net revenue for the fourth quarter of fiscal 2015
decreased 9.3% to $696.7 million,
from $768.4 million in the prior-year
quarter. In constant currency, total net revenue decreased 4.1%.
Refer to the accompanying tables for a summary of the impact of
foreign currency exchange rate fluctuations on the Company's net
revenue.
- The Company's retail stores and e-commerce sites in
North America generated revenue of
$317.0 million in the fourth quarter
of fiscal 2015, a 3.7% decrease from $329.0
million in the same period a year ago. Comparable store
sales including the results of our e-commerce sites for the fourth
quarter of fiscal 2015 decreased 5.0% in U.S. dollars and 3.5% in
constant currency compared to the same period a year
ago.
- Net revenue from the Company's Europe segment decreased 16.1% to $240.9 million in the fourth quarter of fiscal
2015, from $287.1 million in the
prior-year period. In constant currency, net revenue decreased
5.3%.
- Net revenue from the Company's Asia segment decreased 9.1% to $75.4 million in the fourth quarter of fiscal
2015, from $83.0 million in the
prior-year period. In constant currency, net revenue decreased
7.0%.
- Net revenue from the Company's North American Wholesale
segment decreased 10.2% to $36.6
million in the fourth quarter of fiscal 2015, from
$40.8 million in the prior-year
period. In constant currency, net revenue decreased
7.2%.
- Licensing segment net revenue decreased 5.8% to
$26.8 million in the fourth quarter
of fiscal 2015, from $28.4 million in
the prior-year period.
Operating earnings for the fourth quarter of fiscal 2015
decreased 30.1% to $73.2 million
(including a $5.9 million unfavorable
currency translation impact), from adjusted operating earnings of
$104.6 million in the prior-year
period. Operating margin in the fourth quarter decreased 310 basis
points to 10.5%, compared to adjusted operating margin of 13.6% in
the prior-year quarter. The lower operating margin was driven by
the negative impact on the Company's fixed cost structure from
negative same store sales in North
America, higher store impairment charges, lower wholesale
shipments in Europe and more
markdowns in North America. On a
GAAP basis, operating earnings decreased 28.6% and operating margin
decreased 280 basis points.
Other net income, which primarily includes net unrealized and
realized mark-to-market gains on foreign currency contracts, was
$6.9 million for the fourth quarter
of fiscal 2015, compared to $1.3
million in the prior-year quarter.
The Company's effective tax rate decreased to 30.5% for the
fourth quarter of fiscal 2015, compared to 31.4% in the prior-year
period.
Fiscal Year 2015 Results
Net earnings for the fiscal year ended January 31, 2015 were $94.6 million, a decrease of 41.8% compared to
adjusted net earnings of $162.5
million for the fiscal year ended February 1, 2014. Diluted earnings per share
decreased 41.9% to $1.11 in fiscal
year 2015, compared to adjusted diluted earnings per share of
$1.91 in the prior year. The
prior-year adjusted net earnings excluded restructuring charges of
$12.4 million ($9.0 million net of taxes). On a GAAP basis, net
earnings for fiscal 2014 were $153.4
million and diluted earnings per share totaled $1.80, including an unfavorable $0.11 after-tax impact from the restructuring
charges.
Total net revenue for fiscal year 2015 decreased 5.9% to
$2.42 billion, from $2.57 billion in the prior year. In constant
currency, total net revenue decreased 4.6%. Refer to the
accompanying tables for a summary of the impact of foreign currency
exchange rate fluctuations on the Company's net revenue.
- The Company's retail stores and e-commerce sites in
North America generated revenue of
$1.03 billion in fiscal 2015, a
decrease of 4.0% from $1.08 billion
in the prior year. Comparable store sales including the results of
our e-commerce sites for fiscal year 2015 decreased 4.9% in U.S.
dollars and 3.6% in constant currency compared to the prior
year.
- Net revenue from the Company's Europe segment decreased 8.7% to $825.1 million in fiscal year 2015, from
$903.8 million in the prior year. In
constant currency, net revenue decreased 6.3%.
- Net revenue from the Company's Asia segment decreased 4.0% to $281.1 million in fiscal year 2015, from
$292.7 million in the prior year. In
constant currency, net revenue decreased 6.3%.
- Net revenue from the Company's North American Wholesale
segment decreased 6.6% to $167.7
million in fiscal year 2015, from $179.6 million in the prior year. In constant
currency, net revenue decreased 4.5%.
- Licensing segment net revenue decreased 6.0% to
$111.1 million in fiscal year 2015,
from $118.2 million in the prior
year.
Operating earnings for fiscal year 2015 decreased 46.4% to
$125.9 million (including a
$5.2 million unfavorable currency
translation impact) from adjusted operating earnings of
$235.0 million in the prior year.
Operating margin for fiscal 2015 decreased 390 basis points to 5.2%
compared to adjusted operating margin of 9.1% in the prior year.
The lower operating margin was driven by the negative impact on the
Company's fixed cost structure from negative same store sales in
North America and lower wholesale
shipments in Europe, higher store
impairment charges and more markdowns in North America. On a GAAP basis, operating
earnings decreased 43.4% and operating margin decreased 350 basis
points.
Other net income, which primarily includes net unrealized and
realized mark-to-market gains on foreign currency contracts, was
$18.0 million for fiscal year 2015
compared to $10.3 million for the
prior year.
The Company's effective tax rate decreased to 32.0% for fiscal
2015, compared to 32.3% in the prior year.
Outlook
The Company's expectations for the first quarter of fiscal 2016
ending May 2, 2015, are as
follows:
- Consolidated net revenues are expected to grow between 1
and 2 percentage points in constant currency. Currency headwinds
are expected to negatively impact consolidated revenue growth by
approximately 9 percentage points, for a net decline between 8
and 7 percentage points.
- Operating margin is expected to be between minus 1.5% and
minus 1.0% and includes 50 basis points of currency
headwind.
- Diluted net loss per share is expected to be in the range
of $0.06 to $0.03.
For the fiscal year ending January 30,
2016, the Company's expectations are as follows:
- Consolidated net revenues are expected to range between a
decline of minus 1 percentage point and an increase of 1 percentage
point in constant currency. Currency headwinds are expected to
negatively impact consolidated revenue growth by approximately 8
percentage points, for a net decline between 9 and 7
percentage points.
- Operating margin is expected to be between 4.5% and 5.5%
and includes 150 basis points of currency headwind.
- Diluted earnings per share are expected to be in the
range of $0.75 to $0.95. The
estimated impact on earnings per share of the currency headwinds is
roughly 50 cents.
The Company's guidance assumes that foreign currency exchange
rates remain at prevailing rates.
Dividends
The Company also announced today that its Board of Directors has
approved a quarterly cash dividend of $0.225 per share on the Company's common stock.
The dividend will be payable on April 17,
2015 to shareholders of record at the close of business on
April 1, 2015.
Presentation of Non-GAAP Information
The financial information presented in this release includes
non-GAAP financial measures such as "adjusted" results (to exclude
the impact of restructuring charges incurred during the three and
twelve months ended February 1,
2014), constant currency financial information and free cash
flow measures. The non-GAAP measures are provided in addition to,
and not as alternatives for, the Company's reported GAAP
results.
The Company has excluded restructuring charges, and related tax
impact, incurred during the three and twelve months ended
February 1, 2014 from its adjusted
financial measures primarily because it does not believe such
charges reflect the Company's ongoing operating results or future
outlook. The Company believes that these adjusted financial
measures are useful as an additional means for investors to
evaluate the comparability of the Company's operating results when
reviewed in conjunction with the Company's GAAP financial
statements. A reconciliation of reported GAAP results to comparable
non-GAAP results is provided in the accompanying tables.
This release also includes certain constant currency financial
information. Foreign currency exchange rate fluctuations affect the
amount reported from translating the Company's foreign revenues and
expenses into U.S. dollars. These rate fluctuations can have a
significant effect on reported operating results under GAAP. The
Company provides constant currency information to enhance the
visibility of underlying business trends, excluding the effects of
changes in foreign currency translation rates. To calculate
revenues and earnings from operations on a constant currency basis,
operating results for the current-year period are translated into
U.S. dollars at the average exchange rates in effect during the
comparable period of the prior year. The constant currency
calculations do not adjust for the impact of revaluing specific
transactions denominated in a currency that is different to the
functional currency of that entity when exchange rates fluctuate.
However, in calculating the estimated impact of currency on our
earnings per share guidance for fiscal 2016, the Company estimates
gross margin (including the impact of merchandise-related hedges)
and expenses using the appropriate prior-year rates, translates the
estimated foreign earnings at the comparable prior-year rates, and
excludes the year-over-year earnings impact of gains or losses
arising from balance sheet remeasurement and foreign currency
contracts not designated as merchandise hedges. The constant
currency information presented may not be comparable to similarly
titled measures reported by other companies.
The Company also includes information regarding its free cash
flows in this release. The Company calculates free cash flows as
cash flows from operating activities less purchases of property and
equipment. Free cash flows is not intended to be an alternative to
cash flows from operating activities as a measure of liquidity, but
rather provides additional visibility to investors regarding how
much cash is generated for discretionary and non-discretionary
items after deducting purchases of property and equipment. Free
cash flow information presented may not be comparable to similarly
titled measures reported by other companies. A reconciliation of
reported GAAP cash flows from operating activities to the
comparable non-GAAP free cash flow measure is provided in the
accompanying tables.
Investor Conference Call
The Company will hold a conference call at 4:30 pm (ET) on March 18,
2015 to discuss the news announced in this press release. A
live webcast of the conference call will be accessible at
www.guess.com via the "Investor Relations" link. The webcast
will be archived on the website for 30 days.
About Guess?
Guess?, Inc. designs, markets, distributes and licenses a
lifestyle collection of contemporary apparel, denim, handbags,
watches, footwear and other related consumer products. Guess?
products are distributed through branded Guess? stores as well as
better department and specialty stores around the world. As of
January 31, 2015, the Company
directly operated 481 retail stores in the United States and Canada and 356 retail stores in Europe, Asia
and Latin America. The Company's
licensees and distributors operated an additional 831 retail stores
outside of the United States and
Canada. For more information about
the Company, please visit www.guess.com.
Forward-Looking Statements
Except for historical information contained herein, certain
matters discussed in this press release or the related conference
call and webcast, including statements concerning the Company's
expectations, future prospects and strategic initiatives, as well
as guidance for the first quarter and full year of fiscal 2016, are
forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements, which are frequently indicated
by terms such as "expect," "will," "goal," "strategy," "believe,"
"continue," "outlook," "plan" and similar terms, are only
expectations, and involve known and unknown risks and
uncertainties, which may cause actual results in future periods to
differ materially from what is currently anticipated. Factors which
may cause actual results in future periods to differ materially
from current expectations include, among others: our ability to
maintain our brand image and reputation; domestic and international
economic conditions, including economic and other events that could
negatively impact consumer confidence and discretionary consumer
spending; changes in the competitive marketplace and in our
commercial relationships; our ability to anticipate and respond to
consumer preferences and trends; our ability to manage our
inventory commensurate with customer demand; risks related to the
timing and costs of delivering merchandise to our stores and our
wholesale customers (including any delays and incremental costs
related to labor uncertainties at West Coast ports); our ability to
effectively operate our various retail concepts, including
securing, renewing, modifying or terminating leases for store
locations; our ability to successfully implement our growth
strategies and to continue to expand or grow our business; our
ability to successfully implement plans for cost savings;
unexpected obligations arising from new or existing litigation, tax
and other regulatory proceedings; adjustments to our unaudited
financial statements identified during the completion of our annual
independent audit of financial statements and financial controls or
from subsequent events arising after issuance of this release;
risks associated with our foreign operations, such as violations of
laws prohibiting improper payments and the burdens of complying
with a variety of foreign laws and regulations; risks associated
with the acts or omissions of our third party vendors, including a
failure to comply with our vendor code of conduct or other
policies; risks associated with cyber attacks and other cyber
security risks; and changes in economic, political, social
and other conditions affecting our foreign operations and sourcing,
including currency fluctuations, global tax rates and economic and
market conditions in Eastern
Europe, Southern Europe and
Asia. In addition to these
factors, the economic, technological, managerial, and other risks
identified in the Company's most recent annual report on Form 10-K
and other filings with the Securities and Exchange Commission,
including but not limited to the risk factors discussed therein,
could cause actual results to differ materially from current
expectations. Additional information with respect to known and
unknown risks will also be set forth in the Company's annual report
on Form 10-K for the year ended January 31,
2015, which will be filed with the Securities and Exchange
Commission in the first quarter of fiscal 2016. The Company
undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
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Contact:
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Guess?,
Inc.
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Fabrice
Benarouche
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VP, Finance and
Investor Relations
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(213)
765-5578
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Guess?, Inc. and
Subsidiaries
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Condensed
Consolidated Statements of Income
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(amounts in
thousands, except per share data)
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Three Months
Ended
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Twelve Months
Ended
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January 31,
2015
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February 1,
2014
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January 31,
2015
|
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February 1,
2014
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$
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%
|
|
$
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%
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$
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%
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$
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%
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Product
sales
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$
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669,965
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96.2%
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$
|
739,941
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96.3%
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$
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2,306,534
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95.4%
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$
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2,451,580
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95.4%
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Net
royalties
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26,762
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3.8%
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28,422
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3.7%
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|
111,139
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4.6%
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|
118,206
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4.6%
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Net
revenue
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|
696,727
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100.0%
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768,363
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100.0%
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2,417,673
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100.0%
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|
2,569,786
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100.0%
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|
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Cost of product
sales
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435,808
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62.6%
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|
466,414
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|
60.7%
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|
1,549,788
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64.1%
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1,593,652
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62.0%
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Gross
profit
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260,919
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37.4%
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301,949
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39.3%
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|
867,885
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35.9%
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|
976,134
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38.0%
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Selling, general and
administrative expenses
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187,753
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26.9%
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197,339
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25.7%
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741,973
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30.7%
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741,105
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28.9%
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Restructuring
charges
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—
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—%
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2,087
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0.3%
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—
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—%
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12,442
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0.4%
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Earnings from
operations
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73,166
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10.5%
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|
102,523
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13.3%
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|
125,912
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5.2%
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|
222,587
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8.7%
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Other income
(expense):
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Interest
expense
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(477)
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(0.1%)
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(581)
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(0.1%)
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(2,370)
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(0.1%)
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(1,923)
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(0.1%)
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Interest
income
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362
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0.1%
|
|
403
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0.1%
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1,438
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0.1%
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|
2,015
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0.1%
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Other, net
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6,897
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1.0%
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1,338
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0.2%
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18,028
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0.7%
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10,280
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0.4%
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Earnings before
income tax expense
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79,948
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11.5%
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103,683
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13.5%
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143,008
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5.9%
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232,959
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9.1%
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Income tax
expense
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24,359
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3.5%
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32,586
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4.2%
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45,824
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1.9%
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75,248
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3.0%
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Net
earnings
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55,589
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8.0%
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71,097
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9.3%
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97,184
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4.0%
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157,711
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6.1%
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Net earnings
attributable to noncontrolling interests
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1,660
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0.3%
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1,465
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0.2%
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2,614
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0.1%
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4,277
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0.1%
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Net earnings
attributable to Guess?, Inc.
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$
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53,929
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7.7%
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$
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69,632
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9.1%
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$
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94,570
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3.9%
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$
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153,434
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6.0%
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Net earnings per
common share attributable to common stockholders:
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Basic
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$
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0.63
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$
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0.82
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$
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1.11
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$
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1.81
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Diluted
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$
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0.63
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$
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0.82
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$
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1.11
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$
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1.80
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Weighted average
common shares outstanding attributable to common
stockholders:
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Basic
|
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84,722
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84,275
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84,604
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|
|
84,271
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Diluted
|
|
84,924
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|
|
84,596
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|
|
84,837
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|
|
84,522
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|
Adjusted earnings
from operations 1:
|
|
|
|
|
|
$
|
104,610
|
|
13.6%
|
|
|
|
|
$
|
235,029
|
|
9.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net earnings
attributable to Guess?, Inc. 1:
|
|
|
|
|
|
$
|
71,064
|
|
9.2%
|
|
|
|
|
$
|
162,471
|
|
6.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per common share attributable to common stockholders
1:
|
|
|
|
|
|
$
|
0.83
|
|
|
|
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
1
|
|
The adjusted results
reflect the exclusion of restructuring charges (and related taxes
where applicable) recorded during the three and twelve months ended
February 1, 2014. No adjustments have been made to the current-year
periods. A complete reconciliation of actual results to adjusted
results is presented in the table entitled "Reconciliation of GAAP
Results to Adjusted Results."
|
|
|
Guess?, Inc. and
Subsidiaries
|
Reconciliation of
GAAP Results to Adjusted Results
|
(amounts in
thousands, except per share data)
|
|
The following table
provides reconciliations of reported GAAP earnings from operations
to adjusted earnings from operations and reported GAAP net earnings
attributable to Guess?, Inc. to adjusted net earnings attributable
to Guess?, Inc. for the three and twelve months ended February 1,
2014.
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
February 1,
2014
|
|
February 1,
2014
|
|
|
%
of
|
|
|
%
of
|
|
$
|
Revenues
|
|
$
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP
earnings from operations
|
$
|
102,523
|
|
13.3%
|
|
$
|
222,587
|
|
8.7%
|
Restructuring charges 1
|
2,087
|
|
|
|
12,442
|
|
|
|
|
|
|
|
|
Adjusted earnings
from operations
|
$
|
104,610
|
|
13.6%
|
|
$
|
235,029
|
|
9.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported GAAP net
earnings attributable to Guess?, Inc.
|
$
|
69,632
|
|
9.1%
|
|
$
|
153,434
|
|
6.0%
|
|
|
|
|
|
|
Restructuring
charges 1
|
2,087
|
|
|
|
12,442
|
|
|
Income tax
adjustments 2
|
(655)
|
|
|
|
(3,405)
|
|
|
Total adjustments
affecting net earnings attributable to Guess?, Inc.
|
1,432
|
|
|
|
9,037
|
|
|
|
|
|
|
|
|
Adjusted net
earnings attributable to Guess?, Inc.
|
$
|
71,064
|
|
9.2%
|
|
$
|
162,471
|
|
6.3%
|
|
|
|
|
|
|
Adjusted diluted
earnings per common share attributable to common
stockholders:
|
$
|
0.83
|
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding attributable to common
stockholders:
|
|
|
|
|
|
|
|
Basic
|
84,275
|
|
|
|
84,271
|
|
|
|
Diluted
|
84,596
|
|
|
|
84,522
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
1
|
During the first
quarter of fiscal 2014, the Company implemented plans to streamline
its operational structure and reduce expenses in both Europe and
North America. During the second quarter of fiscal 2014, the
Company expanded these plans to include the consolidation and
streamlining of its operations in Europe and Asia. These plans
resulted in restructuring charges incurred during the three and
twelve months ended February 1, 2014. No adjustments have been made
to the same current-year periods.
|
|
|
2
|
The income tax effect
of the restructuring charges was based on the Company's assessment
of deductibility using the statutory tax rate of the tax
jurisdiction in which the charges were incurred.
|
|
|
Guess?, Inc. and
Subsidiaries
|
Consolidated
Segment Data
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
January
31,
|
|
February
1,
|
|
%
|
|
January
31,
|
|
February
1,
|
|
%
|
|
|
|
|
|
|
2015
|
|
2014
|
|
chg
|
|
2015
|
|
2014
|
|
chg
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Retail
|
$
|
317,019
|
|
|
$
|
329,031
|
|
|
(4%)
|
|
$
|
1,032,601
|
|
|
$
|
1,075,475
|
|
|
(4%)
|
|
Europe
|
240,866
|
|
|
287,084
|
|
|
(16%)
|
|
825,136
|
|
|
903,791
|
|
|
(9%)
|
|
Asia
|
75,434
|
|
|
83,003
|
|
|
(9%)
|
|
281,090
|
|
|
292,714
|
|
|
(4%)
|
|
North American
Wholesale
|
36,646
|
|
|
40,823
|
|
|
(10%)
|
|
167,707
|
|
|
179,600
|
|
|
(7%)
|
|
Licensing
|
26,762
|
|
|
28,422
|
|
|
(6%)
|
|
111,139
|
|
|
118,206
|
|
|
(6%)
|
|
|
|
|
|
|
$
|
696,727
|
|
|
$
|
768,363
|
|
|
(9%)
|
|
$
|
2,417,673
|
|
|
$
|
2,569,786
|
|
|
(6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Retail
|
$
|
9,844
|
|
|
$
|
27,177
|
|
|
(64%)
|
|
$
|
(13,734)
|
|
|
$
|
39,540
|
|
|
(135%)
|
|
Europe
|
40,690
|
|
|
49,636
|
|
|
(18%)
|
|
66,231
|
|
|
97,231
|
|
|
(32%)
|
|
Asia
|
270
|
|
|
7,695
|
|
|
(96%)
|
|
8,013
|
|
|
25,592
|
|
|
(69%)
|
|
North American
Wholesale
|
7,313
|
|
|
9,542
|
|
|
(23%)
|
|
34,173
|
|
|
38,771
|
|
|
(12%)
|
|
Licensing
|
25,501
|
|
|
27,329
|
|
|
(7%)
|
|
101,288
|
|
|
107,805
|
|
|
(6%)
|
|
Corporate
Overhead
|
(10,452)
|
|
|
(16,769)
|
|
|
(38%)
|
|
(70,059)
|
|
|
(73,910)
|
|
|
(5%)
|
|
Restructuring
Charges
|
—
|
|
|
(2,087)
|
|
|
|
|
—
|
|
|
(12,442)
|
|
|
|
|
|
|
|
|
|
$
|
73,166
|
|
|
$
|
102,523
|
|
|
(29%)
|
|
$
|
125,912
|
|
|
$
|
222,587
|
|
|
(43%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margins:
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Retail
|
3.1%
|
|
8.3%
|
|
|
|
(1.3%)
|
|
3.7%
|
|
|
|
Europe
|
16.9%
|
|
17.3%
|
|
|
|
8.0%
|
|
10.8%
|
|
|
|
Asia
|
0.4%
|
|
9.3%
|
|
|
|
2.9%
|
|
8.7%
|
|
|
|
North American
Wholesale
|
20.0%
|
|
23.4%
|
|
|
|
20.4%
|
|
21.6%
|
|
|
|
Licensing
|
95.3%
|
|
96.2%
|
|
|
|
91.1%
|
|
91.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Company before
restructuring charges
|
10.5%
|
|
13.6%
|
|
|
|
5.2%
|
|
9.1%
|
|
|
|
Total Company
including restructuring charges
|
10.5%
|
|
13.3%
|
|
|
|
5.2%
|
|
8.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Constant Currency
Financial Measures
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
|
|
|
Jan 31,
2015
|
|
Feb 1,
2014
|
|
%
change
|
|
As
Reported
|
|
Foreign
Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Retail
|
$
|
317,019
|
|
|
$
|
5,699
|
|
|
$
|
322,718
|
|
|
$
|
329,031
|
|
|
(4%)
|
|
(2%)
|
|
Europe
|
240,866
|
|
|
31,063
|
|
|
271,929
|
|
|
287,084
|
|
|
(16%)
|
|
(5%)
|
|
Asia
|
75,434
|
|
|
1,746
|
|
|
77,180
|
|
|
83,003
|
|
|
(9%)
|
|
(7%)
|
|
North American
Wholesale
|
36,646
|
|
|
1,245
|
|
|
37,891
|
|
|
40,823
|
|
|
(10%)
|
|
(7%)
|
|
Licensing
|
26,762
|
|
|
—
|
|
|
26,762
|
|
|
28,422
|
|
|
(6%)
|
|
(6%)
|
|
|
|
|
|
|
$
|
696,727
|
|
|
$
|
39,753
|
|
|
$
|
736,480
|
|
|
$
|
768,363
|
|
|
(9%)
|
|
(4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
|
|
Jan 31,
2015
|
|
Feb 1,
2014
|
|
%
change
|
|
As
Reported
|
|
Foreign
Currency
Impact
|
|
Constant
Currency
|
|
As
Reported
|
|
As
Reported
|
|
Constant
Currency
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
North American
Retail
|
$
|
1,032,601
|
|
|
$
|
15,198
|
|
|
$
|
1,047,799
|
|
|
$
|
1,075,475
|
|
|
(4%)
|
|
(3%)
|
|
Europe
|
825,136
|
|
|
21,337
|
|
|
846,473
|
|
|
903,791
|
|
|
(9%)
|
|
(6%)
|
|
Asia
|
281,090
|
|
|
(6,694)
|
|
|
274,396
|
|
|
292,714
|
|
|
(4%)
|
|
(6%)
|
|
North American
Wholesale
|
167,707
|
|
|
3,877
|
|
|
171,584
|
|
|
179,600
|
|
|
(7%)
|
|
(4%)
|
|
Licensing
|
111,139
|
|
|
—
|
|
|
111,139
|
|
|
118,206
|
|
|
(6%)
|
|
(6%)
|
|
|
|
|
|
|
$
|
2,417,673
|
|
|
$
|
33,718
|
|
|
$
|
2,451,391
|
|
|
$
|
2,569,786
|
|
|
(6%)
|
|
(5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Selected Condensed
Consolidated Balance Sheet Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
February
1,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
483,483
|
|
|
$
|
502,945
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
investments
|
—
|
|
|
5,123
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables,
net
|
216,205
|
|
|
276,565
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventories
|
319,078
|
|
|
350,899
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
assets
|
92,593
|
|
|
80,554
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and
equipment, net
|
259,524
|
|
|
324,606
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
230,522
|
|
|
223,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$
|
1,601,405
|
|
|
$
|
1,764,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of
capital lease obligations and borrowings
|
$
|
1,548
|
|
|
$
|
4,160
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current
liabilities
|
300,418
|
|
|
365,865
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital lease
obligations and other long-term debt
|
6,165
|
|
|
7,580
|
|
|
|
|
|
|
|
|
|
|
|
|
Other long-term
liabilities
|
199,391
|
|
|
211,010
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable and
nonredeemable noncontrolling interests
|
20,027
|
|
|
21,302
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc.
stockholders' equity
|
1,073,856
|
|
|
1,154,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$
|
1,601,405
|
|
|
$
|
1,764,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Condensed
Consolidated Cash Flow Data
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
January
31,
|
|
February
1,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
$
|
153,826
|
|
|
$
|
327,942
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
investing activities
|
|
|
(57,831)
|
|
|
(63,076)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in
financing activities
|
|
|
(79,687)
|
|
|
(84,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rates on cash and cash equivalents
|
|
|
(35,770)
|
|
|
(6,135)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
|
(19,462)
|
|
|
173,924
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the beginning of the year
|
|
|
502,945
|
|
|
329,021
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents at the end of the year
|
|
|
$
|
483,483
|
|
|
$
|
502,945
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
$
|
85,060
|
|
|
$
|
88,369
|
|
|
|
|
|
|
|
|
|
|
|
|
Rent
|
|
|
$
|
284,045
|
|
|
$
|
283,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash
Flow
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
|
January
31,
|
|
February
1,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
|
$
|
153,826
|
|
|
$
|
327,942
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Purchases of
property and equipment
|
|
|
(71,498)
|
|
|
(75,438)
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash
flow
|
|
|
$
|
82,328
|
|
|
$
|
252,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Data
|
International
Store Count
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of January 31,
2015
|
|
As of February 1,
2014
|
|
|
|
|
Total
|
|
Directly
Operated
|
|
Total
|
|
Directly
Operated
|
Region
|
|
|
|
Stores
|
|
Stores
|
|
Stores
|
|
Stores
|
|
|
|
|
|
|
|
|
|
|
|
United States and
Canada
|
481
|
|
481
|
|
494
|
|
494
|
|
|
|
|
|
|
|
|
|
|
|
Europe and the Middle
East
|
596
|
|
265
|
|
627
|
|
263
|
|
|
|
|
|
|
|
|
|
|
|
Asia
|
496
|
|
49
|
|
499
|
|
47
|
|
|
|
|
|
|
|
|
|
|
|
Central and South
America
|
95
|
|
42
|
|
88
|
|
36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,668
|
|
837
|
|
1,708
|
|
840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Data
|
U.S. and
Canada
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
|
|
|
|
|
|
|
|
January
31,
|
|
February
1,
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores at
the beginning of the year
|
|
|
494
|
|
512
|
|
|
|
|
|
|
|
|
|
|
|
Store
openings
|
|
|
15
|
|
13
|
|
|
|
|
|
|
|
|
|
|
|
Store
closures
|
|
|
(28)
|
|
(31)
|
|
|
|
|
|
|
|
|
|
|
|
Number of stores at
the end of the year
|
|
|
481
|
|
494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total store square
footage at the end of the year
|
|
|
2,301,000
|
|
2,329,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
North American
Retail Net Revenue
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
January
31,
|
|
February
1,
|
|
%
|
|
January
31,
|
|
February
1,
|
|
%
|
|
2015
|
|
2014
|
|
chg
|
|
2015
|
|
2014
|
|
chg
|
Net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
stores
|
$
|
286,809
|
|
|
$
|
306,950
|
|
|
(6.6%)
|
|
$
|
954,198
|
|
|
$
|
1,020,104
|
|
|
(6.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
E-commerce
sites
|
30,210
|
|
|
22,081
|
|
|
36.8%
|
|
78,403
|
|
|
55,371
|
|
|
41.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
|
317,019
|
|
|
$
|
329,031
|
|
|
(3.7%)
|
|
$
|
1,032,601
|
|
|
$
|
1,075,475
|
|
|
(4.0%)
|
|
|
|
|
|
|
|
|
|
Guess?, Inc. and
Subsidiaries
|
Retail Store
Change in Comparable Store Sales
|
U.S. and
Canada
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
January 31,
2015
|
|
January 31,
2015
|
|
U.S.
Dollars
|
|
Constant
Currency
|
|
U.S.
Dollars
|
|
Constant
Currency
|
|
|
|
|
|
|
|
|
Excluding e-commerce
sales
|
(8.1%)
|
|
(6.5%)
|
|
(7.6%)
|
|
(6.2%)
|
|
|
|
|
|
|
|
|
Impact of e-commerce
sales
|
3.1%
|
|
3.0%
|
|
2.7%
|
|
2.6%
|
|
|
|
|
|
|
|
|
Including e-commerce
sales
|
(5.0%)
|
|
(3.5%)
|
|
(4.9%)
|
|
(3.6%)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/guess-inc-reports-fourth-quarter-results-300052587.html
SOURCE Guess?, Inc.