Guess?, Inc. Reports Record Q4 and Fiscal Year 2008 Results
Guess?, Inc. Reports Record Q4 and Fiscal Year 2008 Results Wednesday March 19, 4:00 pm ET Reaffirms Fiscal Year 2009 EPS Guidance of $2.35 to $2.45 Announces $200 Million Share Repurchase Authorization Q4 EPS Increased to a Record of $0.59 Versus $0.49 Last Year Fourth Quarter Fiscal 2008 Highlights - Global revenues increased 30% to a record of $514.6 million - North American comp sales up 13.1% - Operating margin improved 70 basis points to 18.7% - Operating earnings increased 35% to $96.2 million Fiscal Year 2008 Highlights - Global revenues increased 40% to a record of $1.75 billion - Operating margin improved 130 basis points to 17.7% - Operating earnings increased 50% to $309.1 million - EPS increased 40% to $1.99 versus $1.42 last year
LOS ANGELES--(BUSINESS WIRE)--Guess?, Inc. (NYSE: GES - News) today reported financial results for the fourth quarter and fiscal year ended February 2, 2008.
Fourth Quarter Fiscal 2008 Results
For the thirteen weeks ended February 2, 2008, the Company reported record net earnings of $55.2 million, an increase of 20.3% compared to net earnings of $45.9 million for the recast fourteen week period ended February 3, 2007. Diluted earnings per share increased 20.4% to $0.59 in the current quarter versus $0.49 for the comparable period last year. There were several items that impacted the comparability of the quarterly results. Last year’s quarter included an extra operating week, non-operating asset gains, a low tax rate and debt retirement costs, while the tax rate for this year’s fourth quarter was relatively high. Collectively, these issues negatively impacted the quarterly earnings per share comparison by about $0.08 per share.
Paul Marciano, Chief Executive Officer, commented, “We are very pleased with our strong financial performance this quarter, especially considering the current economic environment. Once again, all of our business segments contributed to our solid revenue and earnings growth in the period. Our international businesses remained the primary drivers of this growth, with Europe and Asia representing about two-thirds of the revenue increase and half of the operating profit growth in the quarter. These results marked our 18th consecutive quarter of earnings growth.”
Mr. Marciano continued, “We had another outstanding quarter which capped off yet another record-setting year in which we increased revenues by 40% and net earnings by 42%. In fiscal 2008, our international businesses accounted for more than two-thirds of our operating earnings, further solidifying our position as a true global fashion brand. This proves that the strategic investments we are making continue to yield results. Our focus remains the globalization of our brand. We continue to expand both domestically and internationally to capitalize on the strength of our brand and the power of our highly diversified business model. We are confident that we are well positioned to continue to deliver strong financial results in fiscal year 2009 and beyond.”
Total net revenue for the fourth quarter of fiscal 2008 increased 29.9% to $514.6 million from $396.2 million in the prior fourth quarter period. During the quarter, the Company’s retail stores in North America generated revenue of $270.9 million, a 10.4% increase from $245.3 million in the prior-year quarter. Comparable store sales for the thirteen week period ended February 2, 2008 increased 13.1% from the thirteen week period ended February 3, 2007. The Company’s wholesale segment, which includes its Asian operations, generated revenue of $65.1 million during the quarter, a 53.1% increase from $42.5 million in the http://biz.yahoo.com/bw/080319/20080319006037.html?.v=1