June 21, 2024

Wholesale and foreign companies in the United States boost their sales in the first quarter

Translated by

Felicia Endres

Published on

May 31, 2024

Guess Inc. announced on Thursday reported a 4% increase in first-quarter revenue to $591.9 million. The growth was driven by higher wholesale sales and gains in Asia, which offset declines in the shoemaker’s retail business in America.

Rafael Pavarotti

The Los Angeles-based company said retail sales in the Americas remained flat in the three months ended May 4, with comparable retail sales, including e-commerce, down 7%. However, US wholesale sales rose 21%.

Overseas, sales in Asia rose 3%, with comparable retail sales, including e-commerce, down 9%, while sales in Europe rose 1% in the reported quarter. Licensing income increased by 21%.

For the first quarter, Guess reported a GAAP operating loss of $19.9 million (including $1.1 million of impairment charges associated with the non-cash business and $3.1 million of non-cash impairment charges). , compared to 0.9 million US dollars in the first quarter of the same period last year.

“We are very pleased with our first quarter results, which exceeded our expectations in terms of sales and earnings per share,” said Carlos Alberini, CEO of Guess.

“We achieved sales growth of 4% in US dollars and 7% in constant currencies, thanks to great performance in our licensing and wholesale businesses in the Americas, as well as strong results in Europe and Asia. Sales in our retail businesses in North America and South America remained “Our strong results in this quarter once again reflect the strength of our diversified business model as well as the strength of our brand and global sales.”

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Looking ahead, the US company expects revenue growth of between 10.7% and 12.7% for fiscal year 2025, in addition to a 9% to 11% increase in revenue for the second quarter.

Earlier this week, the AU guess was announcedßIt also announced the appointment of Andrew Rosen as CEO of the recently acquired Rag & Bone brand.

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