Key Takeaways From Guess’s Q1 FY 2017 Earnings

-27.00%
Downside
31.45
Market
22.96
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GES
Guess?

Q1 FY 2017 earnings ges

Performance highlights and key takeaways from the earnings call:

  • Guess is currently grappling with its weak sales in most of its stores and a strong decline in its same store sales.
  • On the international front, the strong dollar against foreign currencies dampened sales by rendering its goods more costly overseas.
  • The company had expected a challenging time for the first six months of 2016, given the fact that it is making several changes in its operations as per the strategies formulated by its current CEO, Mr. Victor Herrero.
  • The brand ‘G by Guess’ was the best performer in the first quarter.
  • The sales have been below expectations in regions such as the Americas and Greater China.
  • As per Guess’s three-year plan proposed in the last quarter, around two-thirds of its revenue and profit growth is expected to come from outside the U.S.
  • Guess is in the process of opening new stores in Russia, Turkey, Ireland, Finland, Sweden, and Denmark. It will expand stores in Italy, France, Spain, Portugal, United Kingdom, Belgium, Netherlands, Germany, and Poland.
  • The company has a three-year revenue growth target of $200 million in Asia and $300 million in Americas (which includes the U.S., Canada, Mexico, and Brazil).

Have more questions about Guess? See the link below.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Guess

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