- Guess? Inc (NYSE:GES) reported first-quarter FY23 sales growth of 14% year-on-year, to $593.5 million, beating the consensus of $584.39 million.
- Revenues from Americas Retail increased 7%, Americas Wholesale gained 50%, Europe climbed 14%, and Asia rose 1%. Licensing revenues increased 23%.
- The gross profit increased 16.8% Y/Y to $247.1 million with a margin of 41.6%, a 90-basis points expansion.
- Selling, general and administrative expenses increased 12.4% Y/Y to $209.8 million.
- The operating margin expanded from 5.1% to 6.1%, and operating income for the quarter rose 36.8% to $36.4 million.
- The company held $147.9 million in cash and equivalents as of April 30, 2022.
- Adjusted EPS of $0.24 missed the analyst consensus of $0.29.
- Pursuant to the existing share repurchase authorization, the company entered into an accelerated share repurchase agreement (ASR) to repurchase $175.0 million of its shares.
- Dividend: GES Board approved a quarterly cash dividend of $0.225 per share on the company’s common stock, payable on June 24, 2022, to shareholders of record on June 8, 2022.
- Outlook: Guess sees FY23 revenue growth of 4% in U.S. dollars and 10% in constant currency.
- The company expects Q2 revenues to be up around 1% in U.S. dollars and 8% in constant currency.
- Price Action: GES shares closed higher by 8.16% at $18.03 on Wednesday.
