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.






Contact:

Guess?, Inc.



Fabrice Benarouche



VP, Finance and Investor Relations



(213) 765-5578





































Guess?, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(amounts in thousands, except per share data)






































Three Months Ended


Twelve Months Ended






January 31, 2015


February 1, 2014


January 31, 2015


February 1, 2014






$

%


$

%


$

%


$

%

































Product sales


$

669,965


96.2%


$

739,941


96.3%


$

2,306,534


95.4%


$

2,451,580


95.4%

Net royalties


26,762


3.8%


28,422


3.7%


111,139


4.6%


118,206


4.6%

Net revenue


696,727


100.0%


768,363


100.0%


2,417,673


100.0%


2,569,786


100.0%

















Cost of product sales


435,808


62.6%


466,414


60.7%


1,549,788


64.1%


1,593,652


62.0%

















Gross profit


260,919


37.4%


301,949


39.3%


867,885


35.9%


976,134


38.0%

















Selling, general and administrative expenses


187,753


26.9%


197,339


25.7%


741,973


30.7%


741,105


28.9%

Restructuring charges


—


—%


2,087


0.3%


—


—%


12,442


0.4%

















Earnings from operations


73,166


10.5%


102,523


13.3%


125,912


5.2%


222,587


8.7%

















Other income (expense):














Interest expense


(477)


(0.1%)


(581)


(0.1%)


(2,370)


(0.1%)


(1,923)


(0.1%)


Interest income


362


0.1%


403


0.1%


1,438


0.1%


2,015


0.1%


Other, net


6,897


1.0%


1,338


0.2%


18,028


0.7%


10,280


0.4%

















Earnings before income tax expense


79,948


11.5%


103,683


13.5%


143,008


5.9%


232,959


9.1%

















Income tax expense


24,359


3.5%


32,586


4.2%


45,824


1.9%


75,248


3.0%

















Net earnings


55,589


8.0%


71,097


9.3%


97,184


4.0%


157,711


6.1%

















Net earnings attributable to noncontrolling interests


1,660


0.3%


1,465


0.2%


2,614


0.1%


4,277


0.1%

















Net earnings attributable to Guess?, Inc.


$

53,929


7.7%


$

69,632


9.1%


$

94,570


3.9%


$

153,434


6.0%

















Net earnings per common share attributable to common stockholders:


















Basic


$

0.63




$

0.82




$

1.11




$

1.81




Diluted


$

0.63




$

0.82




$

1.11




$

1.80



















Weighted average common shares outstanding attributable to common stockholders:


















Basic


84,722




84,275




84,604




84,271




Diluted


84,924




84,596




84,837




84,522



















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.

Copyright 2015 PR Newswire

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