Key Takeaways From Guess’s Q1 FY 2017 Earnings
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.
- What Is Guess’s Revenue And EBITDA Breakdown?
- How Has Guess’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- Guess Q4 FY2016 Pre-Earnings Report
- What Led To Guess’ Revenue And EBITDA Decline Over The Last Five Years?
- Guess: Fiscal Year 2016 In Review
- How Did Guess’s Stock Perform Vis-A-Vis Its Peers Over The Last 5 Years ?
- What Is Guess’ Fundamental Value Based On 2016 Estimated Numbers?
- How Did Guess’ Different Segments Perform Over The Last 5 Years?
- Guess Q1 FY 2017 Earnings Preview
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