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Guess Reports Small Net Revenue Bump in Q1, Despite Lag in American Sales

Guess released its first quarter 2018 results, showing a small increase in net revenue despite a lag in American sales.

Net revenue increased 2.2% to $458.6 million, compared to $448.8 million during the same period last year. In constant currency, net revenue grew 4 percent.

Net revenue increased in Europe and Asia, as European revenues increased 23.3% and Asian revenues grew 16.9%. However, the Americas fell 14.9%, including retail comp sales which contain e-commerce, fell 15 percent.

Americas’ wholesale segment revenues increased 5.7%, while overall licensing revenues fell 9.3%.

In the first quarter, Guess Inc. showed a net loss of $21.3 million, a 15.4% improvement compared to the $25.2 million during the same period last year. Guess reported a net loss per share of $0.26, compared to $0.30 in the first quarter of 2017.

Guess also reported an adjusted diluted loss per share decrease of 4.3% to $0.24, up one cent from $0.23 during the first quarter of 2017.

“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,” said Guess CEO Victor Herrero. “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.”

Guess’ GAAP operating loss for the first quarter of FY2018 improved 11.9% to $25.5 million, compared to $29 million during the same period last year.

The company updated its 2018 outlook, expecting a consolidated net revenue increase between 3.5% and 5 percent, and an adjusted EPS of $0.34 to $0.44.