Guess? publishes “better than expected” Q4 and full year 2023 results
Retail giant and denim expert Guess? has said a strong Q4 to 28 January 2023 has helped its FY23 revenues reach £2.2 billion ($2.7 billion), up by 4% compared to the year prior.
Guess?'s Q4 results revealed revenues reached £678 million ($818 million), up 2% in US dollars and up 8% in constant currency. Net earnings stood at £79.3 million ($95.8 million), up by 40.1% from £56.6 million ($68.4 million) the year prior. The company delivered an operating margin of 12.7% and an adjusted operating margin of 13.1%.
Americas retail revenues decreased by 1% in both U.S. dollars and constant currency, whereas Europe's revenues increased by 10% in U.S. dollars and 20% in constant currency.
Carlos Alberini, Chief Executive Officer, commented: "We are very pleased with our fourth quarter performance, which exceeded our expectations. Our revenue growth in the period reached 2% in US dollars and 8% in constant currency, driven by strong results in Europe. This performance contributed to better than expected adjusted operating profit and improved earnings per share. This performance caps a strong year for our Company despite the challenging market conditions we faced."
As for the full year, the company reported revenues reached £2.2 billion ($2.7 billion), up 4% in U.S. dollars and up 12% in constant currency. Net earnings stood at £124 million ($149.6 million), down by 12.7% from £142 million ($171.4 million) the year prior. Total net revenue for fiscal 2023 increased by 4% to £2.23 billion ($2.69 billion). In constant currency, net revenue increased by 12%.
Paul Marciano, Co-Founder and Chief Creative Officer, added: "During the last three years, we have transformed our Company. This is an ongoing project centered on the elevation of our brands. We continue to work on making our product better every day, investing constantly to increase the quality of our products across all categories with a strong focus on sustainability.
"Our customers continue to respond well to our collections and it is clear that our marketing efforts are paying off. Our brand momentum is strong and we are well positioned in the marketplace to continue to gain market share."
Looking forward, Guess? expects to see revenue growth in 2024 to sit between 1% and 3% in U.S. dollars and the operating margin to sit between 8% and 9%.