GUESS? Inc. Reports Mixed Quarterly Results with Revenue Growth and Rising Net Loss

GUESS?, Inc. (NYSE: GES) reported their quarterly results for the period ending May 3, 2025. The company experienced both challenges and opportunities, highlighting underlying financial performance changes.

Positive Aspects:

• Revenue Growth: Total net revenue increased 9.4% to $647.8 million from $591.9 million year-over-year, demonstrating strong sales momentum.
• Gross Profit: Despite challenges, gross profit rose to $258.5 million (39.9% of net revenue), up from $248.1 million (41.9%) in the previous year.
• SG&A Expenses: Selling, general and administrative expenses as a percentage of total net revenue improved, decreasing to 44.2% from 45.1% year-over-year, indicating better cost management.
• International Expansion: The acquisition of rag & bone is expected to strengthen the product portfolio and tap into a broader customer base.

Negative Aspects:

• Net Loss: The company reported a net loss of $32.9 million, down from a net income of $13.0 million in the prior-year quarter, largely due to increased expenses and investment-related costs.
• Asset Impairment: GUESS recognized asset impairment charges of $6.1 million related to underperforming retail locations.
• Operating Loss: Loss from operations widened to $33.3 million from $19.9 million a year earlier, driven primarily by higher impairment charges and unfavorable currency impacts.
• Interest Expense: Interest expense significantly increased to $7.8 million compared to $6.4 million year-over-year.

Key Statistics:

• Net Revenue: $647.8 million (up 9.4% Y/Y)
• Gross Profit: $258.5 million (39.9% margin)
• Net Loss: $32.9 million (loss per share: $0.65)
• SG&A Expenses: $286.5 million (44.2% of revenue)
• Asset Impairment Charges: $6.1 million

The company continues to navigate difficulties related to macroeconomic pressures, including inflation, supply chain disruptions, and shifting consumer sentiments. GUESS? is focused on strategic adaptations, including its recent acquisition and operational efficiencies to mitigate these challenges moving forward.