Fri, Sep 6, 8:52 PM (105 days ago)
For the quarter ended August 3, 2024, Guess?, Inc. reported a net loss of $10.6 million, or a diluted loss per share of $0.28, a stark contrast to a net profit of $39.0 million in the same quarter last year. Total net revenue increased by 10.2% to $732.6 million, driven by the acquisition of rag & bone and higher wholesale shipments, although comparable store sales declined. Gross margin decreased to 43.7%, impacted by rising store occupancy costs and markdowns. SG&A expenses surged by 23.2%, reflecting higher advertising and labor costs, leading to an operating margin decrease to 6.5%. The company faced significant other expenses, totaling $39.9 million, largely due to a $40.5 million loss on the fair value remeasurement of derivatives. The effective tax rate rose to 373.9%, primarily due to lower pre-tax income. On the balance sheet, cash and equivalents fell to $218.9 million, with total liabilities increasing, driven by recent financing activities and the acquisition. The company is navigating macroeconomic pressures, including inflation and geopolitical uncertainties, which continue to impact profitability and cash flow. Looking forward, Guess? aims to optimize operations and enhance profitability amidst these challenges.