Guess?, Inc. Reports Fourth Quarter Results

Q4 Fiscal 2016 EPS of $0.57, Compared to EPS of $0.63 in Q4 Fiscal 2015

Q4 Fiscal 2016 Revenues Decreased 6% to $658 Million; Increased 1% in Constant Currency

Fiscal Year 2016 EPS of $0.96, Compared to EPS of $1.11 in Fiscal Year 2015

Provides Guidance for Q1 Fiscal 2017 in the Range of $0.20 to $0.17 Net Loss Per Share

Provides Fiscal Year 2017 EPS Guidance in the Range of $0.65 to $0.85

Provides Target in Three Years of $3.0B in Revenues and 7.5% in Operating Margin

Mar 16, 2016, 16:15 ET from Guess?, Inc.

LOS ANGELES, March 16, 2016 /PRNewswire/ -- Guess?, Inc. (NYSE: GES) today reported unaudited financial results for its fourth quarter and fiscal year ended January 30, 2016.

Fourth Quarter Fiscal 2016 Highlights

  • Americas Retail revenues decreased 3% in U.S. dollars and increased 1% in constant currency; retail comp sales including e-commerce decreased 1% in U.S. dollars and increased 2% in constant currency
  • Europe revenues decreased 5% in U.S. dollars and increased 6% in constant currency
  • Asia revenues decreased 18% in U.S. dollars and 14% in constant currency
  • Americas Wholesale revenues decreased 9% in U.S. dollars and 1% in constant currency
  • Operating earnings decreased 4%
  • Earnings per share decreased 10%, including the negative impact of currency of 30%
  • Announces quarterly cash dividend of $0.225

Fiscal Year 2016 Highlights

  • Global revenues decreased 9% at $2.2 billion in U.S. dollars; decreased 1% in constant currency
  • Operating earnings decreased 4%
  • Earnings per share decreased 14%, including the negative impact of currency of 39%

Fourth Quarter Fiscal 2016 Results

Victor Herrero, Chief Executive Officer, commented, "I am pleased to report that fourth quarter earnings per share were within the range of our guidance. In Europe, our retail business performed extremely well and delivered positive comp store sales in the high-single digits. In the Americas, our retail business in the U.S. and Canada also achieved positive comps in constant currency. There is still more work to be done, but I am convinced that the initiatives we have started to implement in the last few months have contributed to these encouraging results."

Mr. Herrero continued, "Turning to the outlook for the next three years, based on the Strategic Initiatives that I have mentioned in the last two earnings calls, we are planning for our annual revenues to reach $3.0 billion in three years at prevailing currency rates. This $800 million increase is expected to be driven by growth in E-commerce, retail expansion and positive comp store sales. In terms of regional growth, we expect $300 million of this increase to be driven by the Americas, $300 million by Europe and $200 million by Asia. Again, assuming currencies remain at prevailing levels, we are planning for operating margin to reach 7.5% in three years, mainly driven by leverage, and for earnings per share to increase at a compound annual growth rate of 20%. Overall, more than ever, I truly believe in the potential of the Guess Brand and these three-year plans are a reflection of that."

For the fourth quarter of fiscal 2016, the Company recorded net earnings of $47.8 million, an 11.4% decrease from $53.9 million for the fourth quarter of fiscal 2015. Diluted earnings per share decreased 9.5% to $0.57 for the fourth quarter of fiscal 2016, from $0.63 for the prior-year quarter. The negative impact of currency on earnings per share in the fourth quarter of fiscal 2016 was approximately $0.19 per share.

Total net revenue for the fourth quarter of fiscal 2016 decreased 5.5% to $658.3 million, from $696.7 million in the prior-year quarter. In constant currency, total net revenue increased 0.6%. Refer to the accompanying tables for a summary of net revenue by segment as well as information regarding the impact of foreign currency exchange rate fluctuations on the Company's net revenue.

Operating earnings for the fourth quarter of fiscal 2016 decreased 4.4% to $70.0 million (including a $4.5 million unfavorable currency translation impact), from $73.2 million in the prior-year period. Operating margin in the fourth quarter was relatively flat at 10.6%, compared to 10.5% in the prior-year quarter. The favorable impact from lower store impairment charges was mostly offset by the negative impact from currency exchange rate fluctuations on the operating margin. The negative impact of currency on operating margin for the quarter was roughly 180 basis points.

  • Operating margin for the Company's Americas Retail segment increased 350 basis points to 6.6% in the fourth quarter of fiscal 2016, compared to 3.1% in the prior-year period, due to a lower SG&A rate, partially offset by lower gross margins. The lower SG&A rate was driven by lower store impairment charges. The lower gross margins were due primarily to more markdowns and the unfavorable impact from currency exchange rate fluctuations on product costs.
  • Operating margin for the Company's Europe segment decreased 180 basis points to 15.1% in the fourth quarter of fiscal 2016, from 16.9% in the prior-year period, due to lower gross margins, partially offset by a lower SG&A rate. The lower gross margins were driven primarily by the unfavorable impact from currency exchange rate fluctuations on product costs. The lower SG&A rate was due primarily to the favorable impact on the fixed cost structure resulting from positive comparable store sales.
  • Operating margin for the Company's Asia segment increased 310 basis points to 3.5% in the fourth quarter of fiscal 2016, compared to 0.4% in the prior-year period, due to higher gross margins, partially offset by a higher SG&A rate. The higher gross margins were driven by our South Korea business as we completed the phase out of our G by GUESS product line in the region. The higher SG&A rate was mainly due to overall deleveraging of expenses.
  • Operating margin for the Company's Americas Wholesale segment decreased 100 basis points to 19.0% in the fourth quarter of fiscal 2016, from 20.0% in the prior-year period, due to lower product margins, partially offset by a lower SG&A rate. The lower product margins were driven primarily by higher product costs including the unfavorable impact from currency exchange rate fluctuations. The lower SG&A rate was due primarily to lower performance-based compensation and lower distribution costs.
  • Operating margin for the Company's Licensing segment decreased 740 basis points to 87.9% in the fourth quarter of fiscal 2016, from 95.3% in the prior-year period.

Other net income, which primarily includes realized gains on the sale of other assets and net realized and unrealized mark-to-market revaluation gains on foreign exchange currency contracts, partially offset by net unrealized losses on non-operating assets and net unrealized mark-to-market revaluation losses on foreign currency balances, was $0.3 million for the fourth quarter of fiscal 2016, compared to $6.9 million in the prior-year quarter.

Fiscal Year 2016 Results

Net earnings for the fiscal year ended January 30, 2016 were $81.9 million, a decrease of 13.4% from $94.6 million for the fiscal year ended January 31, 2015. Diluted earnings per share decreased 13.5% to $0.96 in fiscal year 2016, from $1.11 in the prior year. The negative impact of currency on earnings per share for the fiscal year ended January 30, 2016 was approximately $0.43 per share.

Total net revenue for fiscal year 2016 decreased 8.8% to $2.20 billion, from $2.42 billion in the prior year. In constant currency, total net revenue decreased 0.9%. Refer to the accompanying tables for a summary of net revenue by segment as well as information regarding the impact of foreign currency exchange rate fluctuations on the Company's net revenue.

Operating earnings for fiscal year 2016 decreased 3.6% to $121.4 million (including a $10.3 million unfavorable currency translation impact), from $125.9 million in the prior year. Operating margin for fiscal 2016 increased 30 basis points to 5.5% compared to 5.2% in the prior year. The increase in operating margin was driven by lower store impairment charges and higher initial mark-ups, partially offset by the unfavorable impact from currency exchange rate fluctuations. The negative impact of currency on operating margin for fiscal 2016 was roughly 140 basis points.

  • Operating margin for the Company's Americas Retail segment increased 300 basis points to 1.7% in fiscal 2016, compared to negative 1.3% in the prior year, due to a lower SG&A rate and higher gross margins. The lower SG&A rate was driven by lower store impairment charges. The higher gross margins were due primarily to higher initial mark-ups, partially offset by the unfavorable impact from currency exchange rate fluctuations on product costs and the negative impact on the fixed cost structure resulting from negative comparable store sales.
  • Operating margin for the Company's Europe segment decreased 40 basis points to 7.6% in fiscal 2016, from 8.0% in the prior year, due to lower gross margins, partially offset by a lower SG&A rate. The lower gross margins were driven primarily by the unfavorable impact from currency exchange rate fluctuations on product costs, partially offset by higher initial mark-ups. The lower SG&A rate was due primarily to the favorable impact on the fixed cost structure resulting from positive comparable store sales.
  • Operating margin for the Company's Asia segment increased 140 basis points to 4.3% in fiscal 2016, compared to 2.9% in the prior year, driven by higher gross margins in our South Korea business as we completed the phase out of our G by GUESS product line in the region.
  • Operating margin for the Company's Americas Wholesale segment decreased 200 basis points to 18.4% in fiscal 2016, from 20.4% in the prior year, driven by lower product margins due primarily to lower initial mark-ups.
  • Operating margin for the Company's Licensing segment decreased 240 basis points to 88.7% in fiscal 2016, from 91.1% in the prior year.

Other net income, which primarily includes net realized and unrealized mark-to-market revaluation gains on foreign exchange currency contracts and realized gains on the sale of other assets, partially offset by net unrealized mark-to-market revaluation losses on foreign currency balances, was $6.8 million for fiscal year 2016 compared to $18.0 million for the prior year.

Dividends

The Company's Board of Directors has approved a quarterly cash dividend of $0.225 per share on the Company's common stock. The dividend will be payable on April 15, 2016 to shareholders of record at the close of business on March 30, 2016.

Outlook

The following guidance assumes that foreign currency exchange rates remain at prevailing rates:

The Company's expectations for the first quarter of fiscal 2017 ending April 30, 2016, are as follows:

  • Consolidated net revenues are expected to decline between 1.5% and 0.5% in constant currency. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 2.0%, for a net decline between 3.5% and 2.5%.
  • Operating margin is expected to be between minus 5.0% and minus 4.0% and includes 130 basis points of currency headwind.
  • Diluted net loss per share is expected to be in the range of $0.20 to $0.17. The estimated impact on earnings per share of the currency headwinds is approximately $0.04.

For the fiscal year ending January 28, 2017, the Company's expectations are as follows:

  • Consolidated net revenues are expected to increase between 7.0% and 9.0% in constant currency. Currency headwinds are expected to negatively impact consolidated revenue growth by approximately 1.0%, for a net increase between 6.0% and 8.0%.
  • Operating margin is expected to be between 4.0% and 5.0% and includes 50 basis points of currency headwind.
  • Diluted earnings per share are expected to be in the range of $0.65 to $0.85. The estimated impact on earnings per share of the currency headwinds is approximately $0.11.

During the first quarter of fiscal 2017, the Company approved a global cost reduction plan to streamline its operational structure and reduce expenses. The expectations for the first quarter and fiscal year 2017 exclude the impact of any restructuring charges associated with these activities.

On a segment basis, the Company expects the following ranges for percentage changes for comparable store sales ("comps") and net revenue in constant currency and U.S. dollars compared to the same prior-year period:

 












Outlook by Segment1














First Quarter of Fiscal 2017


Fiscal Year 2017














Constant Currency2


U.S. Dollars


Constant Currency2


U.S. Dollars











Americas Retail:










Comps


down LSD to up LSD


down LSD to flat


up LSD


flat to up LSD


Net Revenue


down LSD to flat


down LSD


up LSD to MSD


up LSD to MSD











Europe:










Comps


up mid-teens


__ 


up MSD to HSD


__ 


Net Revenue


flat


flat


up LDD


up LDD











Asia:










Net Revenue


down LSD to up LSD


down MSD to LSD


up high-teens to low twenties


up mid-teens to high-teens











Americas Wholesale:










Net Revenue


down LSD


down HSD


up MSD


up LSD











Licensing:










Net Revenue


__ 


down HSD


__ 


down MSD











Notes









1


As used in the table above, "LSD" is used to refer to the range of Low-Single-Digits, "MSD" is used to refer to the range of Mid-Single-Digits, "HSD" is used to refer to the range of High-Single-Digits, and "LDD" is used to refer to the range of Low-Double-Digits.

2


Eliminates the impact of expected foreign currency translation to give investors a better understanding of the underlying trends within the business.

Presentation of Non-GAAP Information

The financial information presented in this release includes non-GAAP financial measures such as constant currency financial information and free cash flow measures. The non-GAAP measures are provided in addition to, and not as alternatives for, the Company's reported GAAP results.

This release includes certain constant currency financial information. Foreign currency exchange rate fluctuations affect the amount reported from translating the Company's foreign revenue, expenses and balance sheet amounts into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results under GAAP. The Company provides constant currency information to enhance the visibility of underlying business trends, excluding the effects of changes in foreign currency translation rates. To calculate net revenue, comparable store sales and earnings (loss) from operations on a constant currency basis, actual or forecasted results for the current-year period are translated into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year. The constant currency calculations do not adjust for the impact of revaluing specific transactions denominated in a currency that is different to the functional currency of that entity when exchange rates fluctuate. However, in calculating the estimated impact of currency on our earnings per share for our actual and forecasted results, the Company estimates gross margin (including the impact of merchandise-related hedges) and expenses using the appropriate prior-year rates, translates the estimated foreign earnings at the comparable prior-year rates, and excludes the year-over-year earnings impact of gains or losses arising from balance sheet remeasurement and foreign currency contracts not designated as merchandise hedges. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.

The Company also includes information regarding its free cash flows in this release. The Company calculates free cash flows as cash flows from operating activities less purchases of property and equipment. The Company also presents adjusted free cash flows excluding the impact of any significant purchases not in the ordinary course of business in order to enhance the visibility of underlying business trends. Free cash flow measures are not intended to be alternatives to cash flows from operating activities as a measure of liquidity, but rather to provide additional visibility to investors regarding how much cash is generated for discretionary and non-discretionary items after deducting purchases of property and equipment. Free cash flow information presented may not be comparable to similarly titled measures reported by other companies. A reconciliation of reported GAAP cash flows from operating activities to comparable non-GAAP free cash flow measures is provided in the accompanying tables.

Investor Conference Call

The Company will hold a conference call at 4:45 pm (ET) on March 16, 2016 to discuss the news announced in this press release. A live webcast of the conference call will be accessible at www.guess.com via the "Investor Relations" link. The webcast will be archived on the website for 30 days.

About Guess?

Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, denim, handbags, watches, footwear and other related consumer products. Guess? products are distributed through branded Guess? stores as well as better department and specialty stores around the world. As of January 30, 2016, the Company directly operated 835 retail stores in the Americas, Europe and Asia. The Company's licensees and distributors operated 804 additional retail stores worldwide. As of January 30, 2016, the Company and its licensees and distributors operated in more than 95 countries worldwide. For more information about the Company, please visit www.guess.com.

Forward-Looking Statements

Except for historical information contained herein, certain matters discussed in this press release or the related conference call and webcast, including statements concerning the Company's expectations, future prospects and strategic initiatives (including those identified by our Chief Executive Officer, Victor Herrero), guidance for the first quarter and full year of fiscal 2017, as well as our three-year plans (including revenues, operating margin and earnings per share growth), are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are frequently indicated by terms such as "expect," "will," "goal," "strategy," "believe," "continue," "outlook," "plan" and similar terms, are only expectations, and involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from what is currently anticipated. Factors which may cause actual results in future periods to differ materially from current expectations include, among others: our ability to maintain our brand image and reputation; domestic and international economic conditions, including economic and other events that could negatively impact consumer confidence and discretionary consumer spending; changes in the competitive marketplace and in our commercial relationships; our ability to anticipate and respond to consumer preferences and trends; our ability to manage our inventory commensurate with customer demand; risks related to the timing and costs of delivering merchandise to our stores and our wholesale customers; our ability to effectively operate our various retail concepts, including securing, renewing, modifying or terminating leases for store locations; our ability to successfully implement our growth strategies and other strategic initiatives, including expansion in emerging markets and joint ventures; our ability to successfully or timely implement plans for cost and workforce reductions; changes to our short or long-term strategic initiatives; unexpected obligations arising from new or existing litigation, tax and other regulatory proceedings; adjustments to our unaudited financial statements identified during the completion of our annual independent audit of financial statements and financial controls or from subsequent events arising after issuance of this release; risks associated with our foreign operations, such as violations of laws prohibiting improper payments and the burdens of complying with a variety of foreign laws and regulations; risks associated with the acts or omissions of our third party vendors, including a failure to comply with our vendor code of conduct or other policies; risks associated with cyber attacks and other cyber security risks; and changes in economic, political, social and other conditions affecting our foreign operations and sourcing, including the impact of currency fluctuations, global tax rates and economic and market conditions in Eastern Europe, Southern Europe and Asia (particularly China and Korea). In addition to these factors, the economic, technological, managerial, and other risks identified in the Company's most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission, including but not limited to the risk factors discussed therein, could cause actual results to differ materially from current expectations. Additional information with respect to known and unknown risks will also be set forth in the Company's annual report on Form 10-K for the year ended January 30, 2016, which will be filed with the Securities and Exchange Commission in the first quarter of fiscal 2017. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.





Contact:

Guess?, Inc.        



Fabrice Benarouche



VP, Finance and Investor Relations



(213) 765-5578

 












Guess?, Inc. and Subsidiaries




Condensed Consolidated Statements of Income




(amounts in thousands, except per share data)














































Three Months Ended



Twelve Months Ended






January 30, 2016


January 31, 2015


January 30, 2016


January 31, 2015






$


%



$


%



$


%



$


%


































Product sales


$

633,344


96.2%



$

669,965


96.2%



$

2,100,454


95.3%



$

2,306,534


95.4%


Net royalties


24,915


3.8%



26,762


3.8%



103,857


4.7%



111,139


4.6%


Net revenue


658,259


100.0%



696,727


100.0%



2,204,311


100.0%



2,417,673


100.0%


















Cost of product sales


418,095


63.5%



435,808


62.6%



1,416,881


64.3%



1,549,788


64.1%


















Gross profit


240,164


36.5%



260,919


37.4%



787,430


35.7%



867,885


35.9%


















Selling, general and administrative expenses


170,206


25.9%



187,753


26.9%



666,080


30.2%



741,973


30.7%


















Earnings from operations


69,958


10.6%



73,166


10.5%



121,350


5.5%



125,912


5.2%


















Other income (expense):














Interest expense


(497)


(0.0%)



(477)


(0.1%)



(1,953)


(0.0%)



(2,370)


(0.1%)



Interest income


261


0.0%



362


0.1%



1,045


0.0%



1,438


0.1%



Other, net


256


0.0%



6,897


1.0%



6,837


0.3%



18,028


0.7%


















Earnings before income tax expense


69,978


10.6%



79,948


11.5%



127,279


5.8%



143,008


5.9%


















Income tax expense


20,690


3.1%



24,359


3.5%



42,464


2.0%



45,824


1.9%


















Net earnings


49,288


7.5%



55,589


8.0%



84,815


3.8%



97,184


4.0%


















Net earnings attributable to noncontrolling interests


1,511


0.2%



1,660


0.3%



2,964


0.1%



2,614


0.1%


















Net earnings attributable to Guess?, Inc.


$

47,777


7.3%



$

53,929


7.7%



$

81,851


3.7%



$

94,570


3.9%


















Net earnings per common share attributable to common stockholders:


















Basic


$

0.57




$

0.63




$

0.97




$

1.11




Diluted


$

0.57




$

0.63




$

0.96




$

1.11



















Weighted average common shares outstanding attributable to common stockholders:


















Basic


83,101




84,722




84,264




84,604




Diluted


83,551




84,924




84,525




84,837



















Effective tax rate


29.6%




30.5%




33.4%




32.0%












































Guess?, Inc. and Subsidiaries

Consolidated Segment Data

(dollars in thousands)









































Three Months Ended


Twelve Months Ended







January 30,


January 31,


%


January 30,


January 31,


%







2016


2015


change


2016


2015


change


















Net revenue:













Americas Retail1

$

308,638



$

317,019



(3%)


$

981,942



$

1,032,601



(5%)


Europe

229,676



240,866



(5%)


727,144



825,136



(12%)


Asia

61,691



75,434



(18%)


241,571



281,090



(14%)


Americas Wholesale1

33,339



36,646



(9%)


149,797



167,707



(11%)


Licensing

24,915



26,762



(7%)


103,857



111,139



(7%)







$

658,259



$

696,727



(6%)


$

2,204,311



$

2,417,673



(9%)



































Earnings (loss) from operations:













Americas Retail1

$

20,240



$

9,844



106%


$

16,222



$

(13,734)



218%


Europe

34,770



40,690



(15%)


55,438



66,231



(16%)


Asia

2,154



270



698%


10,448



8,013



30%


Americas Wholesale1

6,323



7,313



(14%)


27,525



34,173



(19%)


Licensing

21,890



25,501



(14%)


92,172



101,288



(9%)


Corporate Overhead

(15,419)



(10,452)



48%


(80,455)



(70,059)



15%







$

69,958



$

73,166



(4%)


$

121,350



$

125,912



(4%)



































Operating margins:













Americas Retail1

6.6%



3.1%





1.7%



(1.3%)





Europe

15.1%



16.9%





7.6%



8.0%





Asia

3.5%



0.4%





4.3%



2.9%





Americas Wholesale1

19.0%



20.0%





18.4%



20.4%





Licensing

87.9%



95.3%





88.7%



91.1%






















Total Company

10.6%



10.5%





5.5%



5.2%





















Notes
















1


In the second quarter of fiscal 2016, the Company changed the names of its "North American Retail" and "North American Wholesale" segments to "Americas Retail" and "Americas Wholesale" to better reflect that these segments are inclusive of its operations in North America as well as Central and South America. There have been no changes to the underlying reporting in either segment.















































 




























Guess?, Inc. and Subsidiaries

Constant Currency Financial Measures

(dollars in thousands)
























Three Months Ended











January 30, 2016


January 31, 2015


% change


As Reported


Foreign
Currency
Impact


Constant Currency


As Reported


As
Reported


Constant
Currency

Net revenue:













Americas Retail1

$

308,638



$

11,339



$

319,977



$

317,019



(3%)


1%


Europe

229,676



25,171



254,847



240,866



(5%)


6%


Asia

61,691



3,460



65,151



75,434



(18%)


(14%)


Americas Wholesale1

33,339



2,781



36,120



36,646



(9%)


(1%)


Licensing

24,915





24,915



26,762



(7%)


(7%)







$

658,259



$

42,751



$

701,010



$

696,727



(6%)


1%









































Twelve Months Ended











January 30, 2016


January 31, 2015


% change


As Reported


Foreign
Currency
Impact


Constant Currency


As Reported


As
Reported


Constant
Currency

Net revenue:













Americas Retail1

$

981,942



$

34,078



$

1,016,020



$

1,032,601



(5%)


(2%)


Europe

727,144



129,436



856,580



825,136



(12%)


4%


Asia

241,571



14,454



256,025



281,090



(14%)


(9%)


Americas Wholesale1

149,797



12,667



162,464



167,707



(11%)


(3%)


Licensing

103,857





103,857



111,139



(7%)


(7%)







$

2,204,311



$

190,635



$

2,394,946



$

2,417,673



(9%)


(1%)


















Notes













1


In the second quarter of fiscal 2016, the Company changed the names of its "North American Retail" and "North American Wholesale" segments to "Americas Retail" and "Americas Wholesale" to better reflect that these segments are inclusive of its operations in North America as well as Central and South America. There have been no changes to the underlying reporting in either segment.

 



















Guess?, Inc. and Subsidiaries

Selected Condensed Consolidated Balance Sheet Data

(in thousands)


































January 30,


January 31,










2016


2015













ASSETS













Cash and cash equivalents

$

445,480



$

483,483














Receivables, net

222,359



216,205














Inventories

311,704



319,078














Other current assets1

56,709



73,533














Property and equipment, net

255,344



259,524














Other assets1

247,152



249,582
















Total Assets

$

1,538,748



$

1,601,405


























LIABILITIES AND STOCKHOLDERS' EQUITY













Current portion of capital lease obligations

$

4,024



$

1,548














Other current liabilities

323,035



300,418














Long term debt and capital lease obligations

2,318



6,165














Other long-term liabilities

172,826



199,391














Redeemable and nonredeemable noncontrolling interests

18,070



20,027














Guess?, Inc. stockholders' equity

1,018,475



1,073,856
















Total Liabilities and Stockholders' Equity

$

1,538,748



$

1,601,405














Notes










1


As a result of the adoption of new authoritative guidance during fiscal 2016 which requires that all deferred tax liabilities and assets be classified as long-term on the balance sheet, other current assets and other assets at January 31, 2015 were adjusted to reflect the reclassification of deferred tax assets for $19.1 million from current to long-term.

















Guess?, Inc. and Subsidiaries

Condensed Consolidated Cash Flow Data

(in thousands)































Twelve Months Ended









January 30,


January 31,









2016


2015












Net cash provided by operating activities



$

179,429



$

153,826













Net cash used in investing activities



(73,745)



(57,831)













Net cash used in financing activities



(127,740)



(79,687)













Effect of exchange rates on cash and cash equivalents



(15,947)



(35,770)













Net change in cash and cash equivalents



(38,003)



(19,462)













Cash and cash equivalents at the beginning of the year



483,483



502,945













Cash and cash equivalents at the end of the year



$

445,480



$

483,483
























Supplemental information:

















Depreciation and amortization



$

70,684



$

85,060













Rent



$

259,070



$

284,045








































Guess?, Inc. and Subsidiaries

Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow

(in thousands)































Twelve Months Ended









January 30,


January 31,









2016


2015












Net cash provided by operating activities



$

179,429



$

153,826













Less: Purchases of property and equipment



(83,844)



(71,498)













Free cash flow



95,585



82,328













Add: Purchase of U.S. distribution facility

28,773















Adjusted free cash flow



$

124,358



$

82,328













 













Guess?, Inc. and Subsidiaries

Retail Store Data

International Store Count



























As of January 30, 2016


As of January 31, 2015





Total


Directly Operated


Total


Directly Operated

Region




Stores


Stores


Stores


Stores












United States and Canada

456


455


481


481












Europe and the Middle East

594


280


596


265












Asia

490


54


496


49












Central and South America

99


46


95


42
















1,639


835


1,668


837
























Guess?, Inc. and Subsidiaries

Directly Operated Retail Store Data

U.S. and Canada































Twelve Months Ended








January 30,


January 31,









2016


2015












Number of stores at the beginning of the year



481


494












Store openings



12


15












Store closures



(38)


(28)












Number of stores at the end of the year



455


481























Total store square footage at the end of the year



2,211,000


2,301,000





















 

 

 
























Guess?, Inc. and Subsidiaries

Americas Retail Net Revenue

(dollars in thousands)


























Three Months Ended


Twelve Months Ended


January 30,


January 31,


%


January 30,


January 31,


%


2016


2015


change


2016


2015


change

Net revenue:
























Retail stores

$

275,687



$

286,809



(3.9%)



$

892,414



$

954,198



(6.5%)














E-commerce sites

32,951



30,210



9.1%



89,528



78,403



14.2%














Total

$

308,638



$

317,019



(2.6%)



$

981,942



$

1,032,601



(4.9%)














 










Guess?, Inc. and Subsidiaries

Retail Store Change in Comparable Store Sales

U.S. and Canada


















Three Months Ended


Twelve Months Ended


January 30, 2016


January 30, 2016


U.S. Dollars


Constant
Currency


U.S. Dollars


Constant
Currency









Excluding e-commerce sales

(2.2%)


1.2%


(5.2%)


(2.2%)









Impact of e-commerce sales

1.0%


1.0%


1.6%


1.6%









Including e-commerce sales

(1.2%)


2.2%


(3.6%)


(0.6%)

 

 

SOURCE Guess?, Inc.



RELATED LINKS

http://www.guess.com