GES
$12.61
Guess
($.20)
(1.56%)
Earnings Details
1st Quarter April 2017
Wednesday, May 24, 2017 4:15:00 PM
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Summary

Guess Beats

Guess (GES) reported a 1st Quarter April 2017 loss of $0.24 per share on revenue of $458.6 million. The consensus estimate was a loss of $0.31 per share on revenue of $447.1 million. The Earnings Whisper number was for a loss of $0.28 per share. Revenue grew 2.2% on a year-over-year basis.

The company said it expects second quarter earnings of $0.08 to $0.11 per share on revenue of $555.9 million to $566.8 million. The current consensus earnings estimate is $0.15 per share on revenue of $556.6 million for the quarter ending July 31, 2017. The company also said it now expects fiscal year earnings of $0.34 to $0.44 per share on revenue of $2.29 billion to $2.32 billion. The company's previous guidance was earnings of $0.28 to $0.40 per share on revenue of $2.25 billion to $2.30 billion and the current consensus earnings estimate is $0.34 per share on revenue of $2.25 billion for the year ending January 31, 2018.

Guess? Inc., designs, markets, distributes and licenses a lifestyle collection of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities.

Results
Reported Earnings
($0.24)
Earnings Whisper
($0.28)
Consensus Estimate
($0.31)
Reported Revenue
$458.6 Mil
Revenue Estimate
$447.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Guess?, Inc. Reports First Quarter Results

Guess?, Inc. (GES) today reported financial results for its first quarter ended April 29, 2017.

Victor Herrero, Chief Executive Officer, commented, "We are pleased to report that our first quarter results finished above the high-end of our expectations for revenues, adjusted operating margin and earnings per share. We continued to see strong performance in our international businesses. In Europe and in Asia, our revenues were up 23% and 17% driven by new store openings and positive comp sales. We are also encouraged by the trends in adjusted operating margins for these two regions, as they expanded in the quarter relative to last year. In the Americas, as the performance of our business and the environment remain soft, we are more than ever focused on shrinking our footprint and profitability improvements."

Mr. Herrero concluded, "In today’s world, it is crucial to stay connected with our customers and their aspirations. The Guess Brand has always been associated with Sexy, and Sexy is being more broadly interpreted where anyone can be sexy. Authenticity is "in," and being real is more important than being perfect. The millennial and Gen Z consumer is seeking purpose-driven brands whose values align with their own. As always, we are adapting to this changing environment."

This press release contains certain non-GAAP, or adjusted, financial measures. References to "adjusted" results exclude the impact of (i) asset impairment charges, (ii) restructuring charges, (iii) a restructuring related exit tax charge and (vi) the related tax effects of these adjustments, where applicable. A reconciliation of reported GAAP results to comparable non-GAAP results is provided in the accompanying tables and discussed under the heading "Presentation of Non-GAAP Information" below.

First Quarter Fiscal 2018 Results

For the first quarter of fiscal 2018, the Company recorded GAAP net loss of $21.3 million, a 15.4% improvement compared to $25.2 million for the first quarter of fiscal 2017. GAAP diluted loss per share improved 13.3% to $0.26 for the first quarter of fiscal 2018, compared to $0.30 for the prior-year quarter.

For the first quarter of fiscal 2018, the Company recorded adjusted net loss of $19.4 million, a 0.5% deterioration from $19.3 million for the first quarter of fiscal 2017. Adjusted diluted loss per share deteriorated 4.3% to $0.24, from $0.23 for the prior-year quarter. The positive impact of currency on diluted loss per share in the first quarter of fiscal 2018 was approximately $0.03 per share.

Net Revenue. Total net revenue for the first quarter of fiscal 2018 increased 2.2% to $458.6 million, compared to $448.8 million in the prior-year quarter. In constant currency, net revenue increased by 4.0%.

Americas Retail revenues decreased 14.9% in U.S. dollars and 14.7% in constant currency. Retail comp sales including e-commerce decreased 15% in U.S. dollars and constant currency.

Europe revenues increased 23.3% in U.S. dollars and 29.1% in constant currency. Retail comp sales including e-commerce increased 5% in U.S. dollars and 11% in constant currency.

Asia revenues increased 16.9% in U.S. dollars and 15.5% in constant currency. Retail comp sales including e-commerce increased 4% in U.S. dollars and 2% in constant currency.

Americas Wholesale revenues increased 5.7% in U.S. dollars and 7.7% in constant currency.

-- Licensing revenues decreased 9.3% in U.S. dollars and constant currency.

Operating Loss. GAAP operating loss for the first quarter of fiscal 2018 improved 11.9% to $25.5 million (including a minimal currency translation impact), compared to $29.0 million in the prior-year quarter. GAAP operating margin in the first quarter improved 90 basis points to negative 5.6%, compared to negative 6.5% in the prior-year quarter, driven primarily by the anniversary of last year’s restructuring charges, partially offset by higher asset impairment charges during the current-year period. The negative impact of currency on operating margin for the quarter was roughly 30 basis points.

For the first quarter of fiscal 2018, adjusted operating loss was relatively flat at $22.8 million and adjusted operating margin was negative 5.0%, an improvement of 10 basis points compared to the same prior-year quarter.

Operating margin for the Company’s Americas Retail segment decreased 920 basis points to negative 15.4% in the first quarter of fiscal 2018, from negative 6.2% in the prior-year quarter. Excluding the impact of the asset impairment charges, operating margin for the Company’s Americas Retail segment decreased by 800 basis points compared to the same prior-year quarter. This decrease was driven primarily by the negative impact on the fixed cost structure resulting from negative comparable sales.

Operating margin for the Company’s Europe segment increased 900 basis points to negative 1.9% in the first quarter of fiscal 2018, compared to negative 10.9% in the prior-year quarter. Excluding the impact of the asset impairment charges, operating margin for the Company’s Europe segment improved by 890 basis points compared to the same prior-year quarter. This improvement was driven primarily by the favorable impact on the fixed cost structure resulting from overall leveraging of expenses and higher initial mark-ups.

Operating margin for the Company’s Asia segment decreased 30 basis points to negative 1.3% in the first quarter of fiscal 2018, from negative 1.0% in the prior-year quarter. Excluding the impact of the asset impairment charges, operating margin for the Company’s Asia segment improved by 60 basis points compared to the same prior-year quarter. The improvement in operating margin was driven primarily by overall leveraging of expenses.

Operating margin for the Company’s Americas Wholesale segment increased 90 basis points to 18.5% in the first quarter of fiscal 2018, compared to 17.6% in the prior-year quarter, due to higher gross margins. The higher gross margins were driven primarily by higher initial mark-ups.

Operating margin for the Company’s Licensing segment decreased 590 basis points to 85.5% in the first quarter of fiscal 2018, from 91.4% in the prior-year quarter.

Other net income was $2.4 million for the first quarter of fiscal 2018, which primarily includes unrealized gains on non-operating assets, compared to other net expense of $1.1 million in the prior-year quarter.

Dividends

The Company’s Board of Directors has approved a quarterly cash dividend of $0.225 per share on the Company’s common stock. The dividend will be payable on June 23, 2017 to shareholders of record at the close of business on June 7, 2017.

Outlook

The Company’s expectations for the second quarter of fiscal 2018 ending July 29, 2017 and its updated outlook for the fiscal year ending February 3, 2018 are as follows:

Outlook for Total Company1
Second Quarter of Fiscal 2018
Fiscal Year 20182
Consolidated net revenue in U.S. dollars
increase between 2.0% and 4.0%
increase between 3.5% and 5.0%
Consolidated net revenue in constant currency3
increase between 3.5% and 5.5%
increase between 4.0% and 5.5%
Estimated impact of 53rd week on consolidated net revenue
--
increase of 1.0%
GAAP operating margin
2.2% to 3.0%
2.2% to 2.9%
Adjusted operating margin4
2.2% to 3.0%
2.3% to 3.0%
Currency impact included in operating margin5
(50) basis points
(10) basis points
GAAP EPS
$0.08 to $0.11
$0.32 to $0.42
Adjusted EPS4
$0.08 to $0.11
$0.34 to $0.44
Currency impact included in EPS5
($0.04)
($0.03)
Estimated impact of 53rd week on EPS
--
$0.03
Notes:
1
The Company’s outlook for the second quarter ending July 29, 2017 and the fiscal year ending February 3, 2018 assumes that foreign currency exchange rates remain at prevailing rates.
2
The Company’s fiscal year 2018 will include 53 weeks, while fiscal year 2017 included 52 weeks.
3
Eliminates the impact of expected foreign currency translation to give investors a better understanding of the underlying trends within the business.
4
The adjusted operating margin and adjusted EPS for fiscal year 2018 reflect the exclusion of asset impairment charges and the related tax impact incurred during the first quarter of fiscal 2018 and does not assume any additional asset impairment charges.
5
Represents the estimated translational and transactional impact of foreign currency rate fluctuations within operating margin and EPS measures presented.

On a segment basis, the Company expects the following ranges for percentage changes for comparable store sales including e-commerce ("comps") and net revenue in U.S. dollars and constant currency compared to the same prior-year period:

Outlook by Segment1
Second Quarter of Fiscal 2018
Fiscal Year 2018
U.S. Dollars
Constant Currency2
U.S. Dollars
Constant Currency2
Americas Retail:
Comps
down LDD to HSD
down LDD to HSD
down LDD to HSD
down LDD to HSD
Net Revenue
down LDD to HSD
down LDD to HSD
down LDD to HSD
down LDD to HSD
Europe:
Comps
__
up MSD to HSD
__
up HSD
Net Revenue
up mid-teens
up mid-teens to high-teens
up high-teens
up low-twenties
Asia:
Comps
__
up MSD to LDD
__
up MSD to HSD
Net Revenue
up mid-teens to high-teens
up mid-teens to high-teens
up mid-teens to high-teens
up mid-teens to high-teens
Americas Wholesale:
Net Revenue
down MSD
down LSD
up LSD
up LSD
Licensing:
Net Revenue
down MSD
__
down MSD
__
Notes:
1
As used in the table above, "LSD" is used to refer to the range of Low-Single-Digits, "MSD" is used to refer to the range of Mid-Single-Digits, "HSD" is used to refer to the range of High-Single-Digits, and "LDD" is used to refer to the range of Low-Double-Digits.
2
Eliminates the impact of expected foreign currency translation to give investors a better understanding of the underlying trends within the business.

Presentation of Non-GAAP Information

The financial information presented in this release includes non-GAAP financial measures such as adjusted results, constant currency financial information and free cash flow measures. For the first quarter of fiscal 2018, the adjusted results exclude the impact of asset impairment charges and the related tax impact incurred during the first quarter of fiscal 2018. For the first quarter of fiscal 2017, the adjusted results exclude the impact of asset impairment charges, restructuring charges and a restructuring related exit tax charge and the tax effects of these adjustments. These non-GAAP measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results.

The Company has excluded these items from its adjusted financial measures primarily because it believes that the adjusted financial information provided is useful for investors to evaluate the comparability of the Company’s operating results and its future outlook (when reviewed in conjunction with the Company’s GAAP financial statements). A reconciliation of reported GAAP results to comparable non-GAAP results is provided in the accompanying tables.

This release also includes certain constant currency financial information. Foreign currency exchange rate fluctuations affect the amount reported from translating the Company’s foreign revenue, expenses and balance sheet amounts into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results under GAAP. The Company provides constant currency information to enhance the visibility of underlying business trends, excluding the effects of changes in foreign currency translation rates. To calculate net revenue, comparable sales and earnings (loss) from operations on a constant currency basis, actual or forecasted results for the current-year period are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year. The constant currency calculations do not adjust for the impact of revaluing specific transactions denominated in a currency that is different to the functional currency of that entity when exchange rates fluctuate. However, in calculating the estimated impact of currency on our earnings per share for our actual and forecasted results, the Company estimates gross margin (including the impact of merchandise-related hedges) and expenses using the appropriate prior-year rates, translates the estimated foreign earnings at the comparable prior-year rates, and excludes the year-over-year earnings impact of gains or losses arising from balance sheet remeasurement and foreign currency contracts not designated as merchandise hedges. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.

The Company also includes information regarding its free cash flows in this release. The Company calculates free cash flows as cash flows from operating activities less purchases of property and equipment. Free cash flows is not intended to be an alternative to cash flows from operating activities as a measure of liquidity, but rather provides additional visibility to investors regarding how much cash is generated for discretionary and non-discretionary items after deducting purchases of property and equipment. Free cash flow information presented may not be comparable to similarly titled measures reported by other companies. A reconciliation of reported GAAP cash flows from operating activities to the comparable non-GAAP free cash flow measure is provided in the accompanying tables.

Investor Conference Call

The Company will hold a conference call at 4:45 pm (ET) on May 24, 2017 to discuss the news announced in this press release. A live webcast of the conference call will be accessible at www.guess.com via the "Investor Relations" link. The webcast will be archived on the website for 30 days.

About Guess?

Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, footwear and other related consumer products. Guess? products are distributed through branded Guess? stores as well as better department and specialty stores around the world. As of April 29, 2017, the Company directly operated 949 retail stores in the Americas, Europe and Asia. The Company’s licensees and distributors operated 721 additional retail stores worldwide. As of April 29, 2017, the Company and its licensees and distributors operated in roughly 100 countries worldwide. For more information about the Company, please visit www.guess.com.

Forward-Looking Statements

Except for historical information contained herein, certain matters discussed in this press release or the related conference call and webcast, including statements concerning the Company’s expectations, future prospects, business strategies and strategic initiatives; statements expressing optimism or pessimism about future operating results or events and projected sales (including comparable sales), earnings, capital expenditures, cost savings and cash needs; and guidance for the second quarter and full year of fiscal 2018, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are frequently indicated by terms such as "expect," "will," "goal," "strategy," "believe," "estimate," "continue," "outlook," "plan" and similar terms, are only expectations, and involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from what is currently anticipated. Factors which may cause actual results in future periods to differ materially from current expectations include, among others: our ability to maintain our brand image and reputation; domestic and international economic conditions, including economic and other events that could negatively impact consumer confidence and discretionary consumer spending; changes in the competitive marketplace and in our commercial relationships; our ability to anticipate and adapt to changing consumer preferences and trends; our ability to manage our inventory commensurate with customer demand; risks related to the timing and costs of delivering merchandise to our stores and our wholesale customers; unexpected or unseasonable weather conditions; our ability to effectively operate our various retail concepts, including securing, renewing, modifying or terminating leases for store locations; our ability to successfully and/or timely implement our growth strategies and other strategic initiatives; our ability to expand internationally and operate in regions where we have less experience, including through joint ventures; our ability to successfully or timely implement plans for cost and workforce reductions; our ability to attract and retain key personnel; changes to our short or long-term strategic initiatives; unexpected obligations arising from new or existing litigation, tax and other regulatory proceedings; changes in U.S. tax or tariff policy regarding apparel and other accessory merchandise produced in other countries; accounting adjustments identified from subsequent events arising after issuance of this release; risk of future store asset and/or goodwill impairments or restructuring charges; our ability to adapt to new regulatory compliance and disclosure obligations; risks associated with our foreign operations, such as violations of laws prohibiting improper payments and the burdens of complying with a variety of foreign laws and regulations; risks associated with the acts or omissions of our third party vendors, including a failure to comply with our vendor code of conduct or other policies; risks associated with cyber attacks and other cyber security risks; and changes in economic, political, social and other conditions affecting our foreign operations and sourcing, including the impact of currency fluctuations, global tax rates and economic and market conditions in the various countries in which we operate. In addition to these factors, the economic, technological, managerial, and other risks identified in the Company’s most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission, including but not limited to the risk factors discussed therein, could cause actual results to differ materially from current expectations. The current global economic climate and uncertainty surrounding potential changes in U.S. policies and regulations under the new administration may amplify many of these risks. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Guess?, Inc.
Fabrice Benarouche
VP, Finance and Investor Relations
(213) 765-5578
Guess?, Inc. and Subsidiaries
Condensed Consolidated Statements of Loss
(amounts in thousands, except per share data)
Three Months Ended
April 29, 2017
April 30, 2016
$
%
$
%
Product sales
$
438,320
95.6%
$
426,468
95.0%
Net royalties
20,261
4.4%
22,347
5.0%
Net revenue
458,581
100.0%
448,815
100.0%
Cost of product sales
313,939
68.5%
306,056
68.2%
Gross profit
144,642
31.5%
142,759
31.8%
Selling, general and administrative expenses
167,399
36.5%
165,501
36.9%
Asset impairment charges
2,762
0.6%
153
0.0%
Restructuring charges
--
0.0%
6,083
1.4%
Loss from operations
(25,519)
(5.6%)
(28,978)
(6.5%)
Other income (expense):
Interest expense
(414)
(0.1%)
(520)
(0.1%)
Interest income
871
0.2%
651
0.1%
Other income (expense), net
2,432
0.6%
(1,098)
(0.2%)
Loss before income tax benefit
(22,630)
(4.9%)
(29,945)
(6.7%)
Income tax benefit
(1,403)
(0.3%)
(4,791)
(1.1%)
Net loss
(21,227)
(4.6%)
(25,154)
(5.6%)
Net earnings attributable to noncontrolling interests
66
0.0%
24
0.0%
Net loss attributable to Guess?, Inc.
$
(21,293)
(4.6%)
$
(25,178) (5.6%)
Net loss per common share attributable to common stockholders:
Basic
$
(0.26)
$
(0.30)
Diluted
$
(0.26)
$
(0.30)
Weighted average common shares outstanding attributable to common stockholders:
Basic
83,010
83,514
Diluted
83,010
83,514
Effective tax rate
6.2%
16.0%
Adjusted loss from operations1:
$
(22,757)
(5.0%)
$
(22,742) (5.1%)
Adjusted net loss attributable to Guess?, Inc.1:
$
(19,351)
(4.2%)
$
(19,263) (4.3%)
Adjusted diluted loss per common share attributable to common stockholders1:
$
(0.24)
$
(0.23)
Adjusted effective tax rate1:
2.9%
18.9%
Notes:
1
The adjusted results for the three months ended April 29, 2017 reflect the exclusion of asset impairment charges and the related tax impact that were recorded, where applicable. The adjusted results for the three months ended April 30, 2016 reflect the exclusion of asset impairment charges, restructuring charges, a restructuring related exit tax charge and the tax impacts of these adjustments, where applicable. A complete reconciliation of actual results to adjusted results is presented in the table entitled "Reconciliation of GAAP Results to Adjusted Results."
Guess?, Inc. and Subsidiaries
Reconciliation of GAAP Results to Adjusted Results
(dollars in thousands)
The following table provides reconciliations of reported GAAP loss from operations to adjusted loss from operations, reported GAAP net loss attributable to Guess?, Inc. to adjusted net loss attributable to Guess?, Inc. and reported GAAP income tax benefit to adjusted income tax benefit for the three months ended April 29, 2017 and April 30, 2016.
Three Months Ended
April 29, 2017
April 30, 2016
Reported GAAP loss from operations
$
(25,519)
$
(28,978)
Asset impairment charges1
2,762
153
Restructuring charges2
--
6,083
Adjusted loss from operations
$
(22,757)
$
(22,742)
Reported GAAP net loss attributable to Guess?, Inc.
$
(21,293)
$
(25,178)
Asset impairment charges1
2,762
153
Restructuring charges2
--
6,083
Income tax adjustments3
(820)
(2,232)
Exit tax charge4
--
1,911
Total adjustments affecting net loss attributable to Guess?, Inc.
1,942
5,915
Adjusted net loss attributable to Guess?, Inc.
$
(19,351)
$
(19,263)
Reported GAAP income tax benefit
$
(1,403)
$
(4,791)
Income tax adjustments3
820
2,232
Exit tax charge4
--
(1,911)
Total income tax effect
820
321
Adjusted income tax benefit
$
(583)
$
(4,470)
Adjusted effective tax rate
2.9%
18.9%
Notes:
1
During the three months ended April 29, 2017 and April 30, 2016, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. The results for the three months ended April 30, 2016 have been adjusted to show the impact of the asset impairment charges for comparative purposes to same current-year period results.
2
During the first quarter of fiscal 2017, the Company implemented a global cost reduction and restructuring plan to better align its global cost and organizational structure with its current strategic initiatives which resulted in restructuring charges, mainly related to cash-based severance costs, incurred during the three months ended April 30, 2016.
3
The income tax effect of the asset impairment charges and restructuring charges was based on the Company’s assessment of deductibility using the statutory tax rate of the tax jurisdiction in which the charges were incurred.
4
As a result of the global cost reduction and restructuring plan, the Company incurred an estimated exit tax charge related to its reorganization in Europe during the three months ended April 30, 2016.
Guess?, Inc. and Subsidiaries
Consolidated Segment Data
(dollars in thousands)
Three Months Ended
April 29,
April 30,
%
2017
2016
change
Net revenue:
Americas Retail
$
173,694
$
204,161
(15%)
Europe1
165,388
134,142
23%
Asia1
63,381
54,228
17%
Americas Wholesale1
35,857
33,937
6%
Licensing
20,261
22,347
(9%)
$
458,581
$
448,815
2%
Earnings (loss) from operations:
Americas Retail before impairments
$
(24,653)
$
(12,601)
(96%)
Asset impairment charges2
(2,113)
--
Americas Retail including impairments
(26,766)
(12,601)
(112%)
Europe before impairments1
(3,086)
(14,438)
79%
Asset impairment charges2
(9)
(117)
Europe including impairments1
(3,095)
(14,555)
79%
Asia before impairments1
(198)
(513)
61%
Asset impairment charges2
(640)
(36)
Asia including impairments1
(838)
(549)
(53%)
Americas Wholesale1
6,645
5,961
11%
Licensing
17,331
20,415
(15%)
(6,723)
(1,329)
(406%)
Corporate Overhead
(18,796)
(21,566)
(13%)
Restructuring Charges
--
(6,083)
$
(25,519)
$
(28,978)
12%
Operating margins:
Americas Retail including impairments
(15.4%)
(6.2%)
Americas Retail before impairments
(14.2%)
(6.2%)
Europe including impairments1
(1.9%)
(10.9%)
Europe before impairments1
(1.9%)
(10.8%)
Asia including impairments1
(1.3%)
(1.0%)
Asia before impairments1
(0.3%)
(0.9%)
Americas Wholesale1
18.5%
17.6%
Licensing
85.5%
91.4%
Total Company including impairment and restructuring charges
(5.6%)
(6.5%)
Total Company before impairment and restructuring charges
(5.0%)
(5.1%)
Notes:
1
During the first quarter of fiscal 2018, net revenue and related costs and expenses for certain globally serviced customers were reclassified into the segment primarily responsible for the relationship. Accordingly, segment results for Europe, Asia and Americas Wholesale have been adjusted for the first quarter of fiscal 2017 to conform to the current year presentation.
2
During the three months ended April 29, 2017 and April 30, 2016, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. The results for the three months ended April 30, 2016 have been adjusted to show the impact of the asset impairment charges for comparative purposes to same current-year period results.
Guess?, Inc. and Subsidiaries
Constant Currency Financial Measures
(dollars in thousands)
Three Months Ended
April 29, 2017
April 30, 2016
% change
As Reported
Foreign
Constant
As Reported
As
Constant
Currency
Currency
Reported
Currency
Impact
Net revenue:
Americas Retail
$
173,694
$
442
$
174,136
$
204,161
(15%)
(15%)
Europe1
165,388
7,729
173,117
134,142
23%
29%
Asia1
63,381
(741)
62,640
54,228
17%
16%
Americas Wholesale1 35,857
701
36,558
33,937
6%
8%
Licensing
20,261
--
20,261
22,347
(9%)
(9%)
$
458,581
$
8,131
$
466,712
$
448,815
2%
4%
Notes:
1
During the first quarter of fiscal 2018, net revenue for certain globally serviced customers was reclassified into the segment primarily responsible for the relationship. Accordingly, segment results for Europe, Asia and Americas Wholesale have been adjusted for the first quarter of fiscal 2017 to conform to the current year presentation.
Guess?, Inc. and Subsidiaries
Selected Condensed Consolidated Balance Sheet Data
(in thousands)
April 29,
January 28,
April 30,
2017
2017
2016
ASSETS
Cash and cash equivalents
$
316,395
$
396,129
$
427,485
Receivables, net
193,643
225,537
177,669
Inventories
402,673
367,381
358,191
Other current assets
66,695
54,965
62,305
Property and equipment, net
245,131
243,005
265,818
Restricted cash
1,529
1,521
548
Other assets
246,058
245,947
260,760
Total Assets
$
1,472,124
$
1,534,485
$
1,552,776
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current portion of borrowings and capital lease obligations
$
571
$
566
$
4,443
Other current liabilities
323,995
344,887
314,979
Long-term debt
23,322
23,482
23,539
Other long-term liabilities
179,324
180,104
179,498
Redeemable and nonredeemable noncontrolling interests
18,796
16,224
21,567
Guess?, Inc. stockholders’ equity
926,116
969,222
1,008,750
Total Liabilities and Stockholders’ Equity $
1,472,124
$
1,534,485
$
1,552,776
Guess?, Inc. and Subsidiaries
Condensed Consolidated Cash Flow Data
(in thousands)
Three Months Ended
April 29,
April 30,
2017
2016
Net cash used in operating activities1
$
(29,947)
$
(30,711)
Net cash used in investing activities
(19,234)
(10,086)
Net cash provided by (used in) financing activities1
(35,960)
3,799
Effect of exchange rates on cash, cash equivalents and restricted cash1
5,415
19,032
Net change in cash, cash equivalents and restricted cash1
(79,726)
(17,966)
Cash, cash equivalents and restricted cash at the beginning of the year1
397,650
445,999
Cash, cash equivalents and restricted cash at the end of the period1
$
317,924
$
428,033
Supplemental information:
Depreciation and amortization
$
15,011
$
16,680
Rent
$
66,207
$
63,256
Notes:
1
As a result of the adoption of new authoritative guidance during the first quarter of fiscal 2018 which impacted the classification of certain cash receipts and cash payments in the statement of cash flows, the amounts related to cash flows from operating and financing activities as well as the effect of exchange rates on cash, cash equivalents and restricted cash have been updated for the three months ended April 30, 2016 to conform to the current period presentation.
Guess?, Inc. and Subsidiaries
Reconciliation of Net Cash Used in Operating Activities to Free Cash Flow
(in thousands)
Three Months Ended
April 29,
April 30,
2017
2016
Net cash used in operating activities1
$
(29,947)
$
(30,711)
Less: Purchases of property and equipment
(18,846)
(17,841)
Free cash flow1
$
(48,793)
$
(48,552)
Notes:
1
As a result of the adoption of new authoritative guidance during the first quarter of fiscal 2018 which impacted the classification of certain cash receipts and cash payments in the statement of cash flows, net cash used in operating activities and free cash flow have been updated for the three months ended April 30, 2016 to conform to the current period presentation.
Guess?, Inc. and Subsidiaries
Retail Store Data
International Store Count
As of April 29, 2017
As of April 30, 2016
Total
Directly Operated
Total
Directly Operated
Region
Stores
Stores
Stores
Stores
United States
332
330
343
342
Canada
108
108
112
112
Central and South America 94
51
92
46
Total Americas
534
489
547
500
Europe and the Middle East647
354
588
275
Asia
489
106
497
65
1,670
949
1,632
840
Guess?, Inc. and Subsidiaries
Directly Operated Retail Store Data
U.S. and Canada
Three Months Ended
April 29,
April 30,
2017
2016
Number of stores at the beginning of the year
450
455
Store openings
2
2
Store closures
(14)
(3)
Number of stores at the end of the period
438
454
Total store square footage at the end of the period
2,150,000
2,206,000

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/guess-inc-reports-first-quarter-results-300463421.html

SOURCE Guess?, Inc.

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