Guess Fourth Quarter Exceed Expected Performance To Achieve Big Growth

The US Cowboy brand group Guess Inc. NYSE:GES yesterday released its four quarter and full year earnings report. In the fourth quarter of 2015 fiscal year ended January 31, 2015, the group's EPS recorded a $0.63, even though it fell 23.2% over the same period, but it was better than analysts' expectations of $0.57. Revenue fell 9.3%, from 768 million 400 thousand US dollars in the same period last year to 696 million 700 thousand US dollars, slightly lower than analysts' expectations of 701 million 800 thousand dollars, and the fixed exchange rate fell by 4.1%.

In addition, driven by e-commerce business, Guess Inc. sales in the same store fell 5%, which is also better than analysts' expected 6.5% decline.

After the news, Guess Inc. rose sharply after the stock market. The deadline for press release was 11.47% U.S. dollars on Wednesday 7:02PM 7:02PM, the highest increase after 14%.

Net profit of Guess Inc. in the fourth quarter was recorded at 53 million 929 thousand US dollars, down 24.1% from 6963.2 US dollars in the same period last year.

As of January 31, 2015, the fourth quarter of fiscal year Guess Inc., including electricity providers, including the 2015

Revenue recorded $317 million, a decrease of 3.7% compared with the same period last year, and the total sales of the same group in the fourth quarter decreased by 3% compared with the fixed exchange rate. The fourth quarter income of the European market dropped 16.1%, from the 287 million 100 thousand US dollars in the same period last year to 240 million 900 thousand US dollars, while the fixed exchange rate also decreased by 5.3%; the Asia Pacific market income fell to 9.1% US dollars, which was 83 million dollars in the same period last year, and decreased by the fixed exchange rate; the wholesale income of the North American wholesale channel declined in the fourth quarter to the US dollar and the fixed exchange rate declined; the proxy income fell to 3% US dollars in the quarter.

Guess Inc. recorded a total of $73 million 166 thousand in the fourth quarter, down 30.1% from 102 million 500 thousand dollars a year earlier, and the operating profit rate dropped 280 basis points to 10.5%. Gross margin was 37.4%, down 190 basis points, and gross profit was 260 million 900 thousand dollars, down by 13.6% compared with 301 million 900 thousand dollars in the same period last year.

Paul Marciano, chief executive of Guess Inc., said the group had improved at the end of the four quarter, including sales and stream of people. In addition, the fourth quarter revenue of e-commerce business increased by 37%, contributing 80 million dollars to the group in the whole year.

In the 2015 fiscal year, total Guess Inc. revenue fell 5.9%, from 2 billion 569 million 800 thousand US dollars in the same period last year to US $2 billion 417 million 700 thousand, and net profit recorded US $97 million 184 thousand, a sharp decline of 41.8% compared with 157 million 700 thousand US dollars in the same period last year.

The gross profit margin of Guess Inc. was 35.9%, down 210 basis points from a year ago, and the operating profit margin dropped 350 basis points to 5.2%.

Inc. expects that in the first quarter of 2016 fiscal year ending May 2, 2015, there will be a decrease of 1%-2% in fixed income, and the real exchange rate will decrease from 7%-8% to US $481 million to US $489 million 600 thousand, which is lower than analysts' expectations of US $489 million 600 thousand. We expect EPS's loss of US $0.03 per share to US $0.03, which basically matches the analyst's expected US $-0.03.

Guess Inc. also expects revenue to fall by 9%-7% in the 2016 fiscal year. The fixed exchange rate changes from -1%-1% to US $2 billion 200 million -22.5 billion, which is weaker than analysts' expectations of US $2 billion 360 million. We expect that in the 2016 fiscal year, EPS will be US $0.75 US dollars, which is also lower than analysts' expectations of 1.02 US dollars.