American clothing brand Guess' Q1 FY22 revenue grows to $520 mn
Guess, a US-based designer of lifestyle collection of contemporary apparel and denim, reported 100 per cent revenue growth to $520.0 million in its first quarter (Q1) FY22 ended on May 1, 2021, compared to revenue of $260.2 billion in the corresponding period of previous fiscal. The company's net income rose to $12.8 million (Q1 FY21: loss $160.5 million).
“We are extremely pleased with our first quarter performance, which significantly exceeded our expectations for revenues and profitability across all channels. We couldn’t be more proud of our teams around the world for their strong leadership, great teamwork and enormous effort during the last 15 challenging months,” Carlos Alberini, chief executive officer at Guess, said in a press release.
“We firmly believe that this strong performance is a direct result of the transformational work we have done at the company. This transformation touched every area of our business, including initiatives to elevate our brand and our product, the acceleration of our e-commerce business, the optimisation of our global footprint and brand portfolio, the reorganisation of our team globally and the execution of significant cost reductions throughout our operation,” Paul Marciano, co-founder and chief creative officer at Guess said.
Gross profit for Q1 FY22 increased to $211.5 million ($34.2 million), while selling, general and administrative expenses were $186.7 million ($143.3 million). The company’s earnings from operations for the reported quarter was $26.6 million (loss: $162.5 million).
Americas retail revenues grew 109 per cent to $155.5 million ($74.6 million), while Americas wholesale revenues jumped 76 per cent to $45.4 million ($25.8 million) during Q1 FY22. Revenues from Europe were $4.2 million (loss $44.4 billion) and Asia’s revenues recorded loss of $1.8 million (loss: $22.7 million).
“Furthermore, we are well on track to achieve our long-term 10 per cent operating margin target but now a year earlier than we anticipated. We believe that we are at an inflection point for our company. We have a powerful global brand with great momentum, and I am so thankful that Marciano and I have a strong team that is highly committed and excited to take the company to the next level of growth, profitability and value creation,” Alberini concluded.