Guess? Q4 Highlights: Earnings Beat, Margin Pressure, Prudent Approach To Q1, FY24 Outlook & More - Guess (NYSE:GES)

Guess? Inc GES reported fourth-quarter FY22 sales growth of 2% year-on-year to $817.8 million, beating the consensus of $772 million.
Revenues from Americas Retail decreased 1%, Americas Wholesale dropped 27%, Europe climbed 10%, and Asia decreased 8%. Licensing revenues decreased 8%.
Gross profit decreased 2.3% Y/Y to $361.7 million with a margin of 44.2%, a 210-basis points contraction.
Selling, general and administrative expenses increased 3.7% Y/Y to $254.5 million.
The operating margin contracted from 15.7% to 12.7%, and operating income for the quarter fell 17.4% to $103.5 million.
The company held $275.7 million in cash and equivalents as of Jan. 28, 2023.
Adjusted EPS of $1.74 beat the analyst consensus of $1.30.
Dividend: GES Board approved a quarterly cash dividend of $0.225 per share on the company's common stock, payable on Apr. 14, 2023, to shareholders of record on Mar. 29, 2023.
"For fiscal year 2024, we are taking a prudent approach to our outlook and expect a low single digit revenue growth, a solid profit performance and strong cash flow generation," said CEO Carlos Alberini.
Outlook: Guess sees FY24 adjusted EPS of $2.45 - $2.80 versus the Street view of $3.40. For FY24, the company forecasts consolidated net revenue in U.S. dollars to increase 1.0% - 3.0%.
It sees Q1 Adjusted EPS loss of $(0.31) - $(0.25) against the consensus of $0.52. For Q1, the company expects consolidated net revenue in U.S. dollars to decrease 7.0% - 6.0%.
Price Action: GES shares closed higher by 2.90% at $21.27 on Tuesday.

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