Guess profits bolstered by improved margins

Los Angeles-based fashion retailer Guess?, Inc. (Guess) reported net earnings of $12.0 million, or $0.18 per diluted share, for the first quarter ended May 1, 2021, on Thursday, figures representing solid progress compared to the Q1 losses posted by the company in the last two years.

In the same period in the previous year, which was strongly affected by the impact of pandemic-related store closures, Guess reported a net loss of $157.7 million, or $2.40 per diluted share. In the first quarter ended May 4, 2019, the company’s net loss was $21.4 million, or $0.27 per diluted share.

When compared to last year’s first quarter, the growth in the retailer’s profits is hardly surprising, considering the year-over-year increase of 99.8% in its Q1 net revenues, which totaled $520.0 million this year, up from $260.3 million in the prior-year period, when sales were decimated by the health crisis. In constant currencies the rise was 90.3%.

The company’s European revenues saw the strongest growth, posting a 127.1% year-over-year increase in revenue, followed by a 108.5% rise in retail revenues in the Americas and a 75.6% increase in wholesale revenues in the same region. Asian revenues increased 37.8%, while licensing revenues climbed 66.4%.