Guess? Q2 2022 Earnings Report
Key Takeaways
Guess?, Inc. reported strong second quarter fiscal 2022 results, with revenues reaching $629 million, up 58% compared to Q2 fiscal 2021. The company's operating margin more than doubled versus pre-pandemic levels to reach 13.9%, and earnings per share increased by over 2.5x compared to pre-pandemic levels to finish at $0.91.
Revenues for the quarter finished down 8% versus LLY (second quarter of fiscal 2020).
Operating margin expanded by over 700 basis points to 13.9% compared to the second quarter of fiscal 2020.
Earnings per share of $0.91, versus $0.35 in the LLY period.
Board has approved an increase of existing share buyback program to $200 million.
Guess?
Guess?
Guess? Revenue by Segment
Guess? Revenue by Geographic Location
Forward Guidance
The Company expects revenues in the third quarter of fiscal 2022 to be slightly negative to flat versus the third quarter of fiscal 2020. For the full fiscal year 2022, we expect revenues to be down mid-single digits versus fiscal 2020 and operating margin to reach approximately 10.0%.
Positive Outlook
- Continued momentum in global e-commerce business.
- Favorable shift of European wholesale shipments from the second quarter into the third quarter.
- Return to a normal cadence of product development for European wholesale business.
- Expect revenues to be down mid-single digits versus fiscal 2020.
- Operating margin to reach approximately 10.0%.
Challenges Ahead
- Pandemic-related traffic declines.
- Uncertain impact of the coronavirus (or “COVID-19”) crisis on operations.
- Not providing detailed guidance for the third quarter or the full fiscal year ending January 29, 2022.
- Assuming no additional COVID-related shutdowns past the second quarter.
- Comparisons are versus the pre-pandemic periods from two fiscal years prior in order to provide a more normalized comparison.
Revenue & Expenses
Visualization of income flow from segment revenue to net income