Guess reports second quarter FY 2017 growth, will distribute dividends

By

Dani Greene

Published
Aug 25, 2016

Guess Inc. on Wednesday reported financial results for its second quarter of FY 2017, which ended July 30, 2016. For the second quarter of FY 2017, the company recorded GAAP net earnings of $32.3 million, a 76.4% increase over the second quarter of last year at $18.3 million.
 

While GAAP diluted earnings per share increased 81% to $0.38 for the second quarter of FY 2017, compared to $0.21 for the same quarter in FY 2016. The company sold a minority interest investment of approximately $22.3 million. Excluding the gain from the sale of the minority interest investment, adjusted net earnings were $12 million and adjusted diluted earnings per share was $0.14 during the second quarter of FY 2017.
 
Operating earnings for the second quarter of fiscal 2017 decreased 40.5% to $15.6 million, which includes headwinds of $0.2 million from changes in currency, from $26.2 million in the second quarter FY 2016. The company reported adjusted net earnings of $12.0 million, with adjusted diluted earnings per share at $0.14 during the second quarter of FY 2017.

Net revenue was generally flat compared to the same quarter last year. Total net revenue for the second quarter of FY 2017 decreased 0.2% to $545.0 million, from $546.3 million in the prior-year quarter. In constant currency, total net revenue increased 0.5%.
 
Guess’ Board of Directors will distribute a quarterly cash dividend of $0.225 per share on the company’s common stock on September 23 to shareholders of record on September 7.
 
In light of second quarter revenue and earnings, Guess updated its outlook for the fiscal year ending January 28, 2017. They expect consolidated net revenues to increase between 3% and 5%, with currency tailwinds accounting for 0.5% increase of consolidated revenue. Without including currency tailwinds, consolidated net revenues are expected to increase between 2.5% and 4.5%.
 
GAAP diluted earnings per share are estimated to be between $0.79 and $0.92 at the close of FY 2017. The estimated impact on earnings per share of the currency headwinds is approximately $0.11. Adjusted diluted earnings per share are expected to be in the range of $0.62 to $0.75.
 
Guess Inc. designs, markets, distributes and licenses contemporary apparel, denim, handbags, watches, footwear and other related consumer products. Guess products are distributed through branded Guess stores, department stores and specialty stores globally. As of July 30, 2016, the company directly operated 873 retail stores in over 95 countries worldwide.