Oct 30, 2021

Guess? Q3 2022 Earnings Report

Reported strong third quarter results with revenue and earnings exceeding expectations

Key Takeaways

Guess?, Inc. reported a strong third quarter with revenues reaching $643 million, a 13% increase compared to the previous year and a 4% increase compared to the pre-pandemic third quarter of fiscal year 2020. The company delivered an operating margin in excess of 10.0%, with EPS of $0.45 and adjusted EPS of $0.62. Due to the better than expected results, the company raised its full-year outlook for operating margin to 11.0% and doubled the quarterly cash dividend from $0.1125 to $0.225 per share.

Revenues for the quarter increased 13% versus last year and were up 4% compared to the third quarter of fiscal year 2020, pre-pandemic.

Delivered a 10% operating margin in the period, driven by strong gross margin expansion.

Board has approved to double our quarterly cash dividend from $0.1125 to $0.225.

Company expects to deliver an operating margin of 11.0% in the current year, double that of fiscal 2020, pre-pandemic.

Total Revenue
$643M
Previous year: $569M
+13.0%
EPS
$0.62
Previous year: $0.58
+6.9%
Gross Profit
$294M
Previous year: $240M
+22.6%
Cash and Equivalents
$391M
Previous year: $365M
+7.1%
Free Cash Flow
-$57.4M
Previous year: $55.4M
-203.6%
Total Assets
$2.56B
Previous year: $2.38B
+7.7%

Guess?

Guess?

Guess? Revenue by Segment

Guess? Revenue by Geographic Location

Forward Guidance

Company expects revenues in the fourth quarter of fiscal 2022 to be down mid-single digits versus the fourth quarter of fiscal 2020. For the full fiscal year 2022, the company expects revenues to be down low-single digits versus fiscal 2020 and operating margin to reach approximately 11.0%.

Positive Outlook

  • Continued momentum in our global e-commerce business.

Challenges Ahead

  • Impact of permanent store closures.
  • Unfavorable shift of European wholesale shipments from the fourth quarter into the first quarter of next year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income