GUESS INC SEC 10-Q Report

Guess Inc., a global lifestyle and fashion brand, has released its Form 10-Q report for the first quarter of the fiscal year 2025. The report highlights the company's financial performance and operational activities, providing insights into its revenue growth, profitability, and strategic initiatives amidst challenging macroeconomic conditions.

Financial Highlights

• Net Revenue: $647.8 million, reflecting an increase from the previous year's $591.9 million, driven by higher product sales and net royalties.
• Gross Profit: $258.5 million, up from $248.1 million, indicating improved cost management despite increased cost of product sales.
• Loss from Operations: $(33.3) million, compared to a loss of $(19.9) million in the prior year, primarily due to higher selling, general and administrative expenses and asset impairment charges.
• Net Earnings (Loss) Attributable to Guess?, Inc.: $(32.9) million, a decline from a profit of $13.0 million, impacted by increased interest expense and lower other income.
• Net Earnings (Loss) Per Common Share Attributable to Common Stockholders - Basic: $(0.65), down from $0.24, reflecting the overall decrease in net earnings.
• Net Earnings (Loss) Per Common Share Attributable to Common Stockholders - Diluted: $(0.65), down from $0.23, consistent with the basic earnings per share decline.

Business Highlights

• Revenue Segments: The company's revenue is segmented into Europe, Americas Retail, Americas Wholesale, Asia, and Licensing. Europe and Americas Retail are the largest contributors to product sales, with Europe generating $306.1 million and Americas Retail $157.2 million in the three months ended May 3, 2025.
• Geographical Performance: The U.S. remains a significant market, contributing $193.2 million to product sales. Other key markets include Italy with $53.8 million, Germany with $38.2 million, and South Korea with $35.7 million. The company is experiencing varied performance across these regions, with South Korea showing a decline compared to the previous year.
• New Product Launches: The acquisition of rag & bone has expanded the company's product portfolio, integrating this brand into existing segments and offering new opportunities for growth in the lifestyle and apparel fashion market.
• Future Outlook: The company is navigating macroeconomic challenges such as inflation, foreign exchange rate fluctuations, and geopolitical tensions. It is focusing on strategic expense management to protect profitability and mitigate supply chain disruptions. The introduction of a new universal baseline tariff by the U.S. is expected to impact product costs, and the company is actively monitoring and negotiating tariff agreements to manage these effects.

SEC Filing: GUESS INC [ GES ] - 10-Q - Jun. 11, 2025