Europe, Asia fuel Guess’s better-than-expected revenue growth
Guess Inc has posted a 9 per cent increase in net revenues for the fourth quarter of FY24, which management said exceeded its expectations.
Net revenues for the three months ended February 3 were US$891.1 million compared to $817.8 million in the year-ago period.
Europe’s net revenue rose 9 per cent to $484 million, with comparable sales up 6 per cent. Asia’s net revenue surged 18 per cent to $82 million, while comparable sales in the region grew 2 per cent.
Net revenue of the Americas retail edged up 1 per cent to $245 million, while comparable sales decreased 1 per cent. The Americas wholesale sales rose 44 per cent to $49 million, and licensing increased 15 per cent to $28 million.
The company’s GAAP net earnings for the quarter jumped 20 per cent to $115.3 million.
Carlos Alberini, CEO of Guess Inc, said the results beat the firm’s previous guidance for revenues, operating earnings and earnings per share.
“Our disciplined approach in managing the business enabled us to deliver $330 million of operating cash flow and $248 million of free cash flow and end the year with a cash position of $360 million, well ahead of our expectations,” Alberini continued.
For the full year, Guess’s net revenues rose 3 per cent to $2.78 billion, while GAAP net earnings soared 32 per cent to $198.2 million.
“We saw strong brand momentum all over the world and are very pleased with how our customers are responding to our collections across all our product categories,” commented Paul Marciano, co-founder and chief creative officer. “Our results this past year are a strong testament that our brand elevation strategy and the transformation of our business are taking hold and creating strong value.”
For FY25, the company expects its consolidated net revenue to increase 11.5 to 13.5 per cent.
“We believe we are at an inflection point, and we expect to exceed $3 billion in revenues for the first time in our company’s history with a solid growth plan for our core business,” added Alberini.
- Further reading: Guess posts flat revenue amid lower consumer confidence.
The post Europe, Asia fuel Guess’s better-than-expected revenue growth appeared first on Inside Retail Australia.