Guess reported sales were up by 13% to £584 million ($739 million), boosted by the group’s acquisition of Rag & Bone, during the third quarter ending 2 November 2024.
The California-based company delivered an operating margin of 5.7% and an adjusted operating margin of 5.8%. It said America’s retail revenues increased by 12% and Europe’s revenues increased by 7%. However, in Asia, revenues pushed forward a mere 2%.
All of its operating segments posted revenue growth, except for its licensing segment, which was impacted by the internalisation of its outerwear business and delivered flat revenues.
Despite overall sales growth, the company recorded a net loss of £18.5 million ($23.4 million), compared to net earnings of £44 million ($55.7 million) compared to the same period the year prior.
Carlos Alberini, Chief Executive Officer, said: “Based on our recent trends and other external factors impacting our business including currencies, freight costs and taxes, we are revising our fourth quarter outlook for revenues and earnings. We believe that the current consumer sentiment and slow customer traffic in North America and Asia will persist during the fourth quarter, impacting our business negatively.
“As we look into next year, we remain focused on the evolution of our vision for growth. We have a powerful platform and a strong team that continues to adapt to our new model to create significant value for our shareholders over the long term.”
Looking ahead, the company has lowered its fiscal 2025 outlook after concerns over consumer demand in Asia and North America. It now expects revenues to be up between 7.1% and 8.1% to around £2.37 billion ($3 billion) and GAAP and adjusted operating margins to sit between 6.1% and 6.4% and 6.2% and 6.5% respectively.
Paul Marciano, Co-Founder and Chief Creative Officer, added: “This year we have made significant investments for Guess in new product introductions and increased marketing campaigns, and the customers have responded well. We have also invested in developing our new Rag & Bone and Guess Jeans brands, adding distribution capacity both domestically and internationally.
“Our focus is to create strong brand awareness and increase customer engagement while offering amazing products and a great customer experience. I am excited about our collection this season and believe we are well positioned for this important time of the year.”
