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LONDON, UK / ACCESSWIRE / April 24, 2018 / Active-Investors.com has just released a free earnings report on Guess', Inc. (NYSE: GES). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GES. The Company reported its fourth quarter fiscal 2018 and full fiscal year 2018 operating and financial results on March 21, 2018. The retailer reported better than expected revenues and earnings, and provided guidance for FY19. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Guess' most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
For the fourth quarter of the fiscal year 2018, Guess' total net revenues increased 17.5% to $792.2 million compared to $674.0 million in Q4 FY17. The Company's revenue numbers beat analysts' estimates of $756 million.
During Q4 FY18, Guess' GAAP operating earnings soared 225.9% to $68.4 million, including a favorable currency translation impact of $7.1 million, compared to $21.0 million in Q4 FY17. The Company's GAAP operating margin increased 550 basis points to 8.6% in the reported quarter compared to 3.1% in the prior year's same quarter, driven primarily by lower asset impairment charges.
For Q4 FY18, Guess' adjusted operating earnings increased 31.2% to $70.7 million compared to $53.9 million in Q4 FY17. The Company's adjusted operating margin was 8.9%, reflecting an increase of 90 basis points versus the prior year's comparable quarter, driven primarily by overall leveraging of expenses.
For Q4 FY18, Guess' recorded GAAP net earnings of $1.0 million, or $0.01 per share, compared to $6.6 million, or $0.08 per share, in Q4 FY17. The Company's reported quarter results included the impact of a charge related to the Tax Reform of $47.9 million, or an unfavorable impact of $0.58 per share.
Guess' adjusted net earnings were $51.3 million in Q4 FY18, reflecting an increase of 40.2% compared to $36.6 million in Q4 FY17. The Company's adjusted diluted earnings per share (EPS) increased 44.2% to $0.62 compared to $0.43 in the prior year's corresponding quarter. Guess' earnings beat Wall Street's estimates of $0.54 per share.
For the full fiscal year 2018, Guess' total net revenues increased 7.9% to $2.36 billion compared to $2.19 billion in FY17.
For the full fiscal year ended February 03, 2018, Guess' recorded a GAAP net loss of $7.9 million, or $0.11 loss per share, compared to GAAP net earnings of $22.8 million, or $0.27 per diluted share, in FY17. For FY18, the Company recorded adjusted net earnings of $58.4 million, a 50.6% increase compared to $38.8 million in FY17, while the Company's adjusted diluted EPS increased 52.2% to $0.70 compared to $0.46 in the prior year.
During Q4 FY18, Guess' Americas Retail segment's revenues decreased 6.1% to $271.2 million. The segment's retail comparable sales, including ecommerce, decreased 4% on a y-o-y basis in the reported quarter. The segment's operating margin increased 620 basis points to 6.0% in Q4 FY18 compared to negative 0.2% in Q4 FY17, with the improvement driven primarily by cost reductions due to store closures and negotiated rent reductions, higher initial markups, and lower markdowns.
For Q4 FY18, Guess' Americas Wholesale segment's revenues grew 3.8% to $36.2 million on a y-o-y basis. The segment's operating margin decreased 290 basis points to 14.2% in the reported quarter from 17.1% in the prior year's same quarter, driven primarily by lower gross margins and overall deleveraging of expenses.
For Q4 FY18, Guess' Europe segment's revenues surged 39.7% to $356.8 million. The segment's retail comparable sales, including ecommerce, increased 18% on a y-o-y basis. The segment's operating margin decreased 10 basis points to 15.9% in Q4 FY18 from 16.0% in Q4 FY17, due primarily to higher distribution costs resulting from the relocation of the Company's European distribution center.
Guess' Asia segment's revenues surged 40.2% to $108.5 million in Q4 FY18, while its retail comparable sales, including ecommerce, increased 14% on a y-o-y basis. For the reported quarter, the segment's operating margin increased 470 basis points to 8.4% versus 3.7% in the prior year's comparable quarter, driven primarily by overall leveraging of expenses.
During Q4 FY18, Guess' Licensing segment's revenues increased 11.4% to $19.5 million, while its operating margin decreased 26.9% to 87.7% from 114.6% in the prior year's corresponding quarter.
Guess' free cash flow was $64 million in FY18, an improvement of $83 million versus a negative $19 million in FY17. The Company ended the fiscal year with cash and cash equivalents of $367 million compared to $396 million in the last year. In FY18, Guess' returned $76 million in dividends and $50 million in cash paid for share repurchases to shareholders. Since the start of its dividend program in 2007, Guess' has returned just over $1.4 billion to its shareholders in the form of dividends and share buybacks.
For the first quarter of the fiscal year 2019, Guess' expects revenues to be up 5.5% to 7% on a y-o-y basis, driven by an expected strong growth in Europe and Asia. The Company is expecting an operating margin between negative 4.5% and negative 4.0% for the quarter. For Q1 FY19, Guess' is estimating net loss per share to be in the band of $0.24 to $0.27.
For the full fiscal year 2019, Guess' is projecting EPS to be in the range of $0.86 and $0.98. The Company's capital expenditure is expected to range from $85 million to $95 million for FY19.
Stock Performance Snapshot
April 23, 2018 - At Monday's closing bell, Guess''s stock climbed 2.48%, ending the trading session at $22.72.
Volume traded for the day: 1.06 million shares.
Stock performance in the last month – up 14.11%; previous three-month period – up 20.59%; past twelve-month period – up 101.06%; and year-to-date – up 34.60%
After yesterday's close, Guess''s market cap was at $1.88 billion.
Price to Earnings (P/E) ratio was at 46.56.
The stock has a dividend yield of 3.96%.
The stock is part of the Services sector, categorized under the Apparel Stores industry.
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