US' Guess posts Q1 loss despite revenue growth, maintains FY26 outlook
American clothing company Guess expects consolidated net revenue for full-year fiscal 2026 (FY26) to grow between 5.5 per cent and 7.4 per cent, with adjusted operating margin forecast in the range of 4.4 per cent to 5.1 per cent. Adjusted diluted earnings per share are projected between $1.32 and $1.64. For the second quarter alone, revenue is expected to rise 2.9 per cent to 4.7 per cent.
The company has reported a first quarter (Q1) net loss for FY26, weighed down by unrealised derivative losses and higher operating costs, despite a solid uptick in overall revenue. For the quarter ended May 3, the company recorded a GAAP net loss of $32.9 million, compared to net earnings of $13 million during the same period last year.
Guess's FY26 revenue is projected to grow 5.5â€'7.4 per cent. It has reported a Q1 FY26 net loss of $32.9 million, impacted by derivative losses and rising costs, despite a 9 per cent revenue rise to $647.8 million. Adjusted loss rose 61 per cent year-on-year. Retail sales fell in key regions, while Americas Wholesale surged. The company also completed its Rag & Bone acquisition.
Diluted loss per share came in at $0.65, including a $0.03 negative impact from share buybacks and a $0.08 benefit from currency fluctuations.
The company attributed part of the quarterly loss to a $4.3 million unrealised loss stemming from changes in the fair value of derivatives linked to its 2028 convertible senior notes. This compares unfavourably with a $38.5 million unrealised gain in the year-ago period.
On an adjusted basis, Guess reported a net loss of $22.3 million, up 61 per cent year-on-year. Adjusted diluted loss per share increased to $0.44 from $0.27.
Despite the earnings decline, total net revenue for the quarter rose 9 per cent to $647.8 million, driven by strong performance in the Americas Wholesale segment, which surged 63 per cent in US dollars and 70 per cent in constant currency. However, this growth was offset by weaker results in Asia, where revenues fell 20 per cent, and a 14 per cent drop in global licensing revenues. Retail comparable sales declined in both the Americas and Europe, with the Americas Retail segment recording an 11 per cent decrease in US dollars.
The company's GAAP operating loss widened to $33.3 million, with an operating margin of negative 5.1 per cent, compared to negative 3.4 per cent a year ago. Adjusted operating loss reached $25.8 million, with margins slipping further to negative 4 per cent. Rising store costs, higher advertising expenses, and currency headwinds were cited as the primary factors behind the margin contraction.
Regionally, the Americas Retail segment saw its operating margin deteriorate by 3.3 percentage points to negative 10.5 per cent, while the Asia segment swung from a positive 5.1 per cent margin to negative 3.1 per cent. Licensing margins remained largely stable at over 92 per cent.
Carlos Alberini, chief executive officer , commented, 'We are encouraged by our first quarter performance, which came in ahead of expectations across key metrics. Revenue grew 9 per cent in U.S. dollars and 12 per cent in constant currency, reflecting the successful integration of Rag & Bone and continued momentum in our wholesale businesses across Europe and the Americas. Disciplined expense management, combined with the better than expected top-line performance, enabled us to report operating results ahead of our guidance range, narrowing our loss for the quarter.'
The company also highlighted the completion of its acquisition of New York-based fashion label Rag & Bone in April 2024. As part of a joint venture with brand management firm WHP Global, Guess took over the operating assets and liabilities of Rag & Bone, while the intellectual property is now jointly owned. The acquisition is expected to strengthen Guess' positioning in the premium fashion segment.
Fibre2Fashion News Desk (KD)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
an hour ago
- Hindustan Times
US aerospace industry anxious as tariffs loom
US airlines and aerospace manufacturers insist they have no use for tariff protections, warning that the proposed Trump administration levies could eat into the healthy trade surplus the sector has enjoyed for more than 70 years. At the request of President Donald Trump, Commerce Secretary Howard Lutnick's department launched an investigation on May 1 to determine whether to impose tariffs of between 10 and 20 percent on civil aircraft and parts, including engines. The US industry those tariffs were crafted to protect swiftly let the administration know it was not interested. "Imposing broad tariff or non-tariff trade barriers on the imports of civil aviation technology would risk reversing decades of industrial progress and harm the domestic supply chain," the Aerospace Industries Association said in a letter addressed to Lutnick and obtained by AFP. The interested parties were given until June 3 to communicate their positions. The very next day, Lutnick announced that Washington aimed to "set the standard for aircraft part tariffs" by the end of this month. "The key is to protect that industry," he said, adding: "We will use these tariffs for the betterment of American industry." But AIA and the Airlines for America trade association voiced fear that far from helping, the tariffs would end up harming US manufacturers. "Unlike other industries, the civil aviation manufacturing industry prioritizes domestic production of high-value components and final assembly," AIA pointed out. According to the organization, US aerospace and defense exports reached $135.9 billion in 2023, including $113.9 billion for civil aviation alone. This allowed the sector to generate a trade surplus of $74.5 billion and to invest $34.5 billion in research and development, it said. The sector employs more than 2.2 million people in the United States across more than 100,000 companies, which in 2023 produced goods worth nearly $545 billion. In its response to Lutnick, the A4A highlighted how beneficial the international Agreement on Trade in Commercial Aviation had been by helping to eliminate tariffs and trade barriers over nearly half a century. "The US civil aviation industry is the success story that President Trump is looking for as it leads civil aerospace globally," it insisted. A full 84 percent of production was already American, it said, stressing that Washington "does not need to fix the 16 percent" remaining. "The current trade framework has enhanced our economic and national security and is a critical component to maintaining our national security moving forward," it said. For manufacturers, the potential tariffs would act like sand jamming a well-oiled machine that has been running smoothly for decades, experts warned. They would also throw off balance an ultra-sensitive supply chain still recovering from the Covid-19 pandemic. "To avoid the situation getting worse, we advocate to keep aerospace outside of trade wars," Willie Walsh, head of the International Air Transport Association , told the organization's general assembly last week. AIA meanwhile stressed that "aircraft and parts are already in high demand and have a limited supply." "Integrating new suppliers and expanding capacity is complex, timely, and costly," it warned, pointing out that finding suppliers capable of meeting rigorous safety certifications could "take up to 10 years." Delta Air Lines also argued for sticking with the status quo, cautioning that the proposed tariffs "would hinder Delta's ability to maintain its current trajectory." "If component parts incur tariffs upon entering the United States, Delta will be at a competitive disadvantage to foreign competitors," it said. "The action would also impose an unexpected tax on Delta's purchases of aircraft contracted years in advance." Delta chief Ed Bastian insisted in late April that the airline "will not be paying tariffs on any aircraft deliveries we take," adding that it was "working very closely with Airbus" to minimize the impact. Delta pointed out in its letter to Lutnick that it currently had 100 aircraft on order from Boeing, and that it was demanding that its Airbus A220s be produced primarily in Mobile, Alabama. But if the tariffs are imposed, it warned, "Delta would likely be forced to cancel existing contracts and reconsider contracts under negotiation." elm/tu/ph/nl/aha AIA Group Delta Air Lines Airbus Group BOEING
Hindustan Times
4 hours ago
- Hindustan Times
India seeks exemption from US' 10% baseline tariff
The fate of the 10% baseline tariffs that the Trump administration invoked on imports from all countries on April 2 is among the issues now at the heart of negotiations between New Delhi and Washington as they attempt to hammer out an early tranche of the trade deal, people aware of the matter have said. Delhi is not in favour of replicating, as suggested by the American negotiators, the approach in the trade deal struck between the US and the UK, where British goods are still subject to the baseline tariffs, these people added. According to a person with direct knowledge of the discussions, Indian negotiators are pushing for their American counterparts to remove the baseline 10% rate as well as commit to assurances that the additional 16%, due to be implemented on July 9, will be left off. An American negotiating team led by assistant US Trade Representative Brendan Lynch 4 landed in Delhi on June for what is the fifth time negotiators from either side have gone to the other's capital for face-to-face talks. The American delegation is expected to be in Delhi till June 10, longer than the previously expected two-day visit. ALSO READ | India-US trade negotiations hit top gear, American delegation extends Delhi stay 'Ideally, both the 10% baseline tariff on Indian goods and the additional 16% from July 9 must end simultaneously after an interim deal is signed. Else, India will also have rights to continue proportionately similar tariffs on American goods till the time the US withdraws the entire 26% reciprocal tariff,' one of them said, citing a joint statement by the two countries' leaders issued on February 13 in Washington. While expounding 'Mission-500' to double bilateral trade to $500 billion by 2030 on February 13, the two leaders – Prime Minister Narendra Modi and President Donald Trump – in their joint statement mentioned the need for new 'fair-trade terms' that are 'mutually beneficial', the person said. A second person aware of the matter corroborated India's stance: 'Only a mutually beneficial deal would have a long life'. 'Both India and the US are sovereigns. One is the oldest democracy and the other is the largest democracy. While the US is the largest economy, India is the fastest growing major economy of the world. Hence, the deal must be balanced, equitable, fair and acceptable to their people,' the first person said. The second person added that India sees trade interests between both nations as being 'complementary and not competitive', hence New Delhi is open to giving greater market access to the American goods in the Indian market provided Washington reciprocates. 'The trade negotiations continue in New Delhi covering all these matters in a constructive manner as we speak and both sides are hopeful for a win-win,' he said. ALSO READ | Donald Trump claims India willing to cut 100% tariffs on US goods, 'but…' After UK industries faced American tariffs of 25% on all aluminium, steel and derivatives (announced on March 12), 25% tariff on passenger vehicles (announced on April 3), 25% tariff on automobile parts (beginning May 3), and a 10% baseline tariff on all imports (from April 5) – the UK and the US on May 8 announced an economic prosperity deal (EPD). The mini deal secured some concessions for the UK, but the 10% baseline tariff continued. Both partners are racing to conclude an interim, or regarded as an 'early harvest', deal before July 9, which will be followed by a wider first tranche of Bilateral Trade Agreement (BTA) by September-October 2025. After that a comprehensive BTA will be negotiated, they said. ALSO READ | How Donald Trump decided the tariff for India The current negotiations for an early harvest deal involve greater market access for goods by eliminating tariffs and non-tariff trade barriers, and improving supply chain integration, they said. The current New Delhi round is followed by a face-to-face negotiation between the two teams in the US. During that period, Union commerce and industry minister Piyush Goyal was also in the US from May 17-22 where he held meetings with his counterparts, US commerce secretary Howard Lutnick and USTR Jamieson Greer.
Time of India
7 hours ago
- Time of India
After Trump and Bannon, Musk's friendship with Stephen Miller turns nasty as the Tesla CEO walks away with his wife
Elon Musk and Stephen Miller, once allies, are now feuding. The clash involves policy disagreements over Donald Trump's bill. Miller criticized Musk's "pork-filled" comment on Fox Business. Rumors suggest a personal conflict involving Miller's wife, Katie. Katie Miller reportedly left her job and marriage to work for Musk. The former allies have unfollowed each other amid the fallout. Tired of too many ads? Remove Ads What triggered the political clash between Musk and Miller? What happened during Stephen Miller's Fox Business interview? Tired of too many ads? Remove Ads Did Miller respond directly to Musk's criticism? How did Katie Miller get involved in the fallout? How close were the Katie Millers and Elon Musk before the fallout? Are the personal rumors making things worse? Tired of too many ads? Remove Ads FAQs What began as a political alliance between Elon Musk and top Trump adviser Stephen Miller has unraveled both professionally and personally. The drama now includes heated policy disagreements and tensions are escalating specifically naming the billionaire, Stephen Miller responded to Elon Musk's criticism of Donald Trump's "Big, Beautiful Bill."Stephen Miller slammed Elon Musk in the Fox Business interview while defending Trump's contentious bill, which Musk called "pork-filled." Beyond politics, their feud has taken a personal turn, as per a report by the Daily fallout is messy, and the former allies have unfollowed one another. Rumors of a personal dispute between Miller and Musk are still circulating at the time of the Miller lamented, "Tax cuts and reforms. American energy independence. Full, complete, permanent border security and the largest welfare reform in American history.' 'That's not pork. That's not waste. That's not new spending. That is the most conservative piece of legislation in my lifetime,' as quoted in a report by the Daily remarks were a clear jab at Musk, who has called the bill a "disgusting abomination" and "pork-filled." The tech billionaire's criticisms have sparked a contentious split with Trump, with the two titans trading barbs on social responded to a critique of the formerly Musk-led organization where his wife worked by saying, "There's this myth out there that we could do the DOGE cuts in this bill." "But that's a different procedure."Miller didn't directly mention Musk, but host Larry Kudlow, a Trump ally, assisted him in drawing this reference to the intricacies of the law, Kudlow stated, "I don't think Elon understood that. "I prefer not to discuss that stuff. Okay, so he has $180 billion listed on his website. May he be blessed by God for that. He's been really helpful with that.' Miller grinned but remained has it that Elon Musk fled the White House with Miller's wife, Katie. Katie has left Stephen Miller and her job to apparently work for Musk after serving as a top aide at Musk's Department of Government Efficiency, as per a his time in government, Musk developed a close relationship with the Millers. Katie Miller was with Musk "all the time," according to the Wall Street Journal, before she followed him out the door. Even outside of work, Musk reportedly spent time with the to Miller's X post this week, the only "new" expenditure in the bill is to defend the homeland and deport illegals, with increased visa fees covering the costs."All the other provisions? Massive spending cuts. There is no 'pork' in the bill. Just campaign promises.'This comes as a blow to Musk's relationship with Katie Miller's at odds over Trump's latest bill, and rumors of a personal feud involving Miller's wife have added fuel to the Miller reportedly left her government position and marriage to continue working for Musk, sparking widespread speculation.
