Aug 03, 2024

Guess? Q2 2025 Earnings Report

Reported revenue growth and adjusted EPS, but net loss was impacted by derivative valuation changes.

Key Takeaways

Guess? Inc. reported a revenue increase of 10% to $733 million, driven by the rag & bone acquisition and strong wholesale performance in Europe and the Americas. However, the company recorded a GAAP net loss of $10.6 million, or $0.28 per share, due to a $40.5 million unrealized loss from derivative valuation changes. Adjusted EPS was $0.42. The company lowered its full fiscal year 2025 outlook, expecting revenue to increase between 9.5% and 11.0%.

Revenues increased 10% to $733 million, or 13% in constant currency.

GAAP loss per share was $0.28, while adjusted EPS was $0.42.

Operating margin was 6.5%, with an adjusted operating margin of 5.2%.

The company lowered its full fiscal year 2025 outlook, expecting revenue to increase between 9.5% and 11.0%.

Total Revenue
$733M
Previous year: $665M
+10.2%
EPS
$0.42
Previous year: $0.72
-41.7%
Gross Profit
$320M
Previous year: $294M
+8.7%
Cash and Equivalents
$219M
Previous year: $303M
-27.7%
Free Cash Flow
$24.3M
Previous year: $42.5M
-42.9%
Total Assets
$2.78B
Previous year: $2.49B
+11.5%

Guess?

Guess?

Guess? Revenue by Segment

Guess? Revenue by Geographic Location

Forward Guidance

The Company’s expectations for the third quarter and full fiscal year 2025 are as follows:

Positive Outlook

  • Expects revenue increase between 9.5% and 11.0% in U.S. Dollars
  • Expects GAAP operating margin between 7.2% and 7.7%
  • Expects Adjusted operating margin between 7.3% and 7.8%
  • Expects GAAP EPS between $1.92 and $2.14
  • Expects Adjusted EPS between $2.42 and $2.70

Revenue & Expenses

Visualization of income flow from segment revenue to net income