NYSE$GES

Guess? Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported fourth quarter results, with revenues decreasing by 23% to $648 million and GAAP earnings per share of $1.07.

Guess?, Inc. reported a decrease in revenue for the fourth quarter of fiscal year 2021, with a GAAP EPS of $1.07. The company's performance exceeded expectations despite challenges posed by the pandemic, with expanded gross margin and tight expense management mitigating the revenue decrease.

  • Q4 Fiscal 2021 revenues decreased 23% to $648 million; decreased 26% in constant currency.
  • Q4 Fiscal 2021 GAAP Earnings Per Share (“EPS”) of $1.07, Compared to GAAP EPS of $1.18 in Q4 Fiscal 2020; Q4 Fiscal 2021 Adjusted EPS of $1.18, Compared to $1.22 in Q4 Fiscal 2020
  • The customer is responding very well to our assortments in our stores and in our digital business, which has accelerated quite nicely in the fourth quarter and further into this year.
  • Reaffirms plan to deliver 10% operating margin by Fiscal 2025

Headline financials

Total Revenue

$648M

Previous: $842M-23.0%
EPS (adj)

$1.18

Previous: $1.22-3.3%
Capital Expenditures

$6.51M

Previous: $12.8M-49.3%
Free Cash Flow

$104M

Previous: $213M-51.1%
Net Income

$70.4M

Previous: $79.6M-11.5%
Operating Income

$71.9M

Previous: $96.5M-25.5%
Gross Profit

$276M

Previous: $339M-18.4%
Cash & Equivalents

$469M

Previous: $285M+64.8%
Total Assets

$2.47B

Previous: $2.43B+1.5%
Stock-Based Comp

$4.3M

Previous: $9.65M-55.4%

Revenue & EPS history

Guess? · Revenue · Quarterly

$648M

Q4 2021-23%vs Q4 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Guess? · $648M total across 5 segments · Q4 2021

  • Europe
    $308M-26.8%
  • Americas Retail
    $196M-24.2%
  • Asia
    $80M-16.2%
  • Americas Wholesale
    $35.5M-15.3%
  • Licensing
    $29.5M+12.2%

Forward guidance

Given the current circumstances regarding the COVID-19 crisis and its uncertain impact on our operations, we are not providing detailed guidance for the first quarter or the full fiscal year ending January 29, 2022. We expect revenues in the first quarter of fiscal 2022 to be down in the high-single digits versus the first quarter of fiscal 2020 as pandemic-related shutdowns and traffic declines are partially offset by continued momentum in our global e-commerce business and the favorable timing shift of European wholesale shipments from the fourth quarter of fiscal 2021 into the first quarter of fiscal 2022.

Tailwinds

  • Momentum in global e-commerce business
  • Favorable timing shift of European wholesale shipments from the fourth quarter of fiscal 2021 into the first quarter of fiscal 2022.
  • The five-year strategic plan that the Company presented in December 2019 continues to be a solid roadmap for revenue growth, increased profitability and value creation.
  • The Company’s financial plan is to achieve an operating margin of 10% by fiscal 2025, with net revenues of $2.9 billion, a 2% CAGR from fiscal 2020.
  • The Company’s Board of Directors has approved a quarterly cash dividend of $0.1125 per share on the Company’s common stock.

Headwinds

  • COVID-19 crisis and its uncertain impact on our operations
  • Pandemic-related shutdowns
  • Traffic declines
  • We expect revenues in the first quarter of fiscal 2022 to be down in the high-single digits versus the first quarter of fiscal 2020
  • For the full fiscal year 2022, assuming no COVID-related shutdowns past the first quarter, we expect revenues to be down in the high-single digits versus fiscal 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 8 quarterly earnings reports

Historical avg

+2.5%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-1.5%

Avg return

30 days after

54%

36 / 67 earnings

Positive

+39.0%

Q4 2020

Best reaction

-32.3%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.2%+0.2%-1.7%
Q2 2026+0.2%+0.2%-0.8%
Q1 2026+8.8%+11.1%+16.8%
Q4 2025+9.8%-13.7%+13.5%
Q3 2025-9.1%-9.2%-23.0%
Q2 2025-3.3%-2.3%-5.3%
Q1 2025-0.6%-1.6%-12.9%
Q4 2024+24.5%+17.8%+1.9%
Q3 2024-13.8%
Q2 2024+26.9%
Q1 2024+7.4%
Q4 2023-2.5%
Q3 2023+2.7%
Q2 2023-2.3%
Q1 2023+20.4%
Q4 2022+15.6%
Q3 2022+6.3%
Q2 2022-2.1%
Q1 2022-1.7%
Q4 2021+5.9%
Q3 2021+14.7%
Q2 2021+11.2%
Q1 2021-32.3%
Q4 2020+39.0%
Q3 2020+5.9%
Q2 2020+29.4%
Q1 2020-9.4%
Q4 2019-14.3%
Q3 2019+4.4%
Q2 2019+4.6%
Q1 2019-20.3%
Q4 2018+32.9%
Q3 2018-12.1%
Q2 2018+20.1%
Q1 2018+13.4%
Q4 2017-10.3%
Q3 2017-11.6%
Q2 2017+14.5%
Q1 2017-3.9%
Q4 2016-15.9%
Q3 2016+9.0%
Q2 2016+12.0%
Q1 2016+8.7%
Q4 2015+13.2%
Q3 2015-8.3%
Q2 2015-9.5%
Q1 2015-3.6%
Q4 2014-5.1%
Q3 2014-3.7%
Q2 2014+13.2%
Q1 2014+9.0%
Q4 2013-6.5%
Q3 2013+7.4%
Q2 2013-21.6%
Q1 2013+0.2%
Q4 2012-1.0%
Q3 2012-2.5%
Q1 2011+1.6%
Q2 2012+1.6%
Q1 2012-0.8%
Q4 2009-0.5%
Q4 2011-0.5%
Q3 2011-1.3%
Q3 2010-1.3%
Q2 2011+0.5%
Q4 2010+0.5%
Q2 2010+0.5%

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