Guess? Inc (NYSE:GES) stock rose 9.36% (As on April 4, 11:23:15 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY25. The company announced that sales for the fiscal 2025 year increased 8% to $3 billion, on the back of a solid fourth quarter helped on by the U.S. retailer’s Rag & Bone acquisition. For the quarter, net income fell 29% to $81.4 million.
The company has recently launched Guess Jeans brand and the just acquired rag & bone business. The company is focusing on the strategic initiatives on increasing direct-to-consumer sales productivity globally and improving profitability through business and portfolio optimization. In Greater China, the company believe there is an opportunity for this market to be directly developed and managed by a local, highly experienced partner. The company has already met several potential candidates for consideration and we expect for this transition to be completed before the end of this fiscal year. In North America, the company sees an opportunity to streamline the Guess full price store portfolio by exiting non-strategic, unprofitable locations, and to reduce costs by consolidating some of the infrastructure supporting this business. The company expects that, together, they will unlock approximately $30 million in operating profit in fiscal 2027
GES in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.48, beating the analysts’ estimates for the adjusted earnings per share of $1.37, according to analysts polled by FactSet. The company had reported the adjusted revenue growth of 5 percent to $932.3 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $907.8 million. The growth in the period was primarily driven by the rag & bone acquisition coupled with positive momentum in the wholesale businesses in Europe and the Americas and increased licensing revenues. By region, Europe revenues increased 2%, partially offset by a 15% decline in Asia sales. Domestically, Americas retail revenues lifted 4%, despite retail comparable sales, including e-commerce, taking a 14% dive, while Americas wholesale revenues surged 63%. Licensing revenues rose 18%
The company expects a fiscal Q1 adjusted non-GAAP EPS loss of $0.65 to $0.74 a share. Two analysts polled by FactSet expect a loss of $0.23
The company projects fiscal 2026 adjusted non-GAAP EPS of $1.32 to $1.76. Three analysts polled by FactSet expect $2.02.
On the other hand, Guess? named Alberto Toni as chief financial officer, effective mid-June. He succeeds interim CFO Dennis Secor, who will continue as executive vice president until Sept. 12.