Driven by the company’s recent acquisition of the brand Rag & Bone and a modest growth of its core Guess businesses, the Q3, FY25 revenues of Guess Inc increased by 13 per cent to $738.5 million.
Retail revenues of the Los Angeles-based company in Americas increased by 12 per cent, while retail comparable sales (including e-commerce) declined by 14 per cent. The company’s wholesale revenues in the region increased by 79 per cent for the three months ending Nov 2, 2024.
Revenues from Europe increased by 7 per cent with retail comparable sales from the region growing by 8 per cent. The company’s revenues from Asia expanded by 2 per cent while retail comparable sales from the region contracted by 17 per cent.
Despite this sales growth, the company recorded a net loss of $23.4 million during the quarter as against a net profit of $55.7 million registered during the corresponding quarter of the previous year.
All of the company’s operations posted revenue growth expect for the Licensing segment, which, impacted by the internalisation of its outerwear business, delivered flat revenues. The company’s business in Europe remained strong while operations in North America and Asia were impacted by slow customer traffics with direct-to-consumer channels. The company’s earnings from operations during the period exceeded expectations.
In Q4, FY25, Guess’ operations will continue to remain impacted by the current sluggish consumer sentiment and slow customer traffic in North America and Asia As a result, the company’s revenue for the full year are expected to fall slightly below $3 billion, an increase between 7.1 per cent and 8.1 per cent.
