Latest news with #Alberini
Yahoo
14-04-2025
- Business
- Yahoo
Guess? projects FY26 revenue growth as FY25 earnings drop 70%
Guess? saw a significant unrealised loss of $60.7m in FY25 due to the revaluation of derivatives linked to the company's convertible senior notes due in 2028 and associated convertible note hedges. Total net revenue for the fiscal showed an increase of 8%, reaching $3bn up from $2.78bn in fiscal 2024. Revenue streams varied by region, with Europe and Americas retail experiencing a growth of 7% in constant currency. However, Asia faced a downturn with revenues falling by 5% in US dollars and 2% in constant currency. Licensing revenues enjoyed growth, rising by 10% in both US dollars and constant currency. Earnings per share (EPS) of Guess? on a GAAP diluted basis saw a reduction of 75% to $0.77 for FY25, down from $3.09 in FY24. The company's EPS was influenced by share repurchases, which had a beneficial effect of $0.03, and currency fluctuations, which had a detrimental impact of $0.23. The retailer's operating earnings on a GAAP basis for FY25 were down by 34% to $173.8m, this figure includes gains from the sale of the US distribution centre totalling $13.8m during the second quarter and was impacted by unfavourable currency translation effects amounting to $15.7m. The operating margin on a GAAP basis fell by 3.7% to 5.8%, down from 9.5% in fiscal 2024. Guess? chief executive officer Carlos Alberini said: 'During the year, we delivered solid results with our Licensing segment and our wholesale businesses in Europe and the Americas, but missed our plans for our direct-to-consumer business due to slower customer traffic in North America and Asia. Importantly, this year we reached a significant milestone for our company, as we executed our first acquisition in Guess's history, with the addition of Rag & Bone to our portfolio.' During the quarter ending 1 February 2025, Guess? posted net earnings of $81.4m, marking a decrease of 29% from the $115.3m recorded during the equivalent quarter of the previous year. The diluted EPS for Q4 dropped by 32% to $1.16 compared to $1.71 for the corresponding quarter last year, with share buybacks positively contributing $0.05 and currency movements negatively impacting EPS by $0.13. For the same quarter, net revenue rose by 5% to $932.3m from $891.1m year-on-year; this represented a constant currency increase of 9%. Revenue changes across regions during this quarter included a modest rise of 2% in Europe when measured in US dollars and Americas retail saw an uptick of 4% in US dollars. Asia faced a more pronounced decline with revenues dropping by 15% in US dollars. Licensing revenues surged by 18% across both metrics. Alberini added: 'The growth in the period was primarily driven by the Rag & Bone acquisition coupled with positive momentum in our wholesale businesses in Europe and the Americas and increased licensing revenues.' The company's earnings from operations decreased by 28.4% to $103.6m in Q4 FY25, which included negative impacts due to unfavourable currency translation totalling $6.4m, compared with $144.8m for the same period last year. Operating margin on a GAAP basis for this quarter fell by 5.2% to reach an 11.1% down from last year's figure of 16.3%. Guess? forecasts an increase in net revenue ranging between approximately 3.9%-6.2% in fiscal 2026 (FY26). It also projected operational earnings between $133m and $165m, with expectations for GAAP diluted EPS between $1.03 and $1.37 and anticipates an improvement in operating margins ranging from roughly 4.3%-5.2%. For Q1 FY26, Guess? anticipates consolidated net revenue growth between nearly 5.8-7.5%. It projects operational losses between $35m and $30m with anticipated diluted loss per share ranging from approximately $0.75 to $0.66. Alberini has indicated that the company is shifting its strategic focus towards enhancing productivity in direct-to-consumer sales on a global scale and boosting profitability by streamlining its business and portfolio. As part of this strategy, the company is considering transitioning out of its direct operations in Greater China, which it has managed for many years. The aim is to hand over the market development to a local partner with extensive experience. Discussions with several prospective partners are underway, with the goal of completing this change before the current fiscal year concludes. In North America, Guess? plans to refine its network of full-price stores by closing down locations that do not align with its strategic goals or are not profitable. Additionally, it is looking to cut costs by consolidating some of the infrastructure that supports their operations in this region. He added: 'Our fiscal 2026 outlook includes the anticipated impact from these actions and we expect that, together, they will unlock approximately $30m in operating profit in fiscal 2027.' Last month, Guess?' partner on the Rag & Bone acquisition, WHP Global, submitted a proposal to acquire the US fashion brand with an industry insider noting it has the potential for expansion. "Guess? projects FY26 revenue growth as FY25 earnings drop 70%" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
07-04-2025
- Business
- Yahoo
Guess? to exit some retail stores in North America to boost profit by FY27
Fashion clothing and accessories Guess? has disclosed plans to streamline operations and optimise its portfolios in China and North America. The company intends to turn over its direct operations in China to a local partner. Guess? chief executive officer Carlos Alberini stated: 'As we enter fiscal year 2026, we are excited about our growth opportunities for our core Guess business, our recently launched Guess Jeans brand and our just acquired rag & bone business. We are focusing our strategic initiatives on increasing direct-to-consumer sales productivity globally and improving profitability through business and portfolio optimisation. "In connection with this, after many years of running our own direct operations in Greater China, we believe there is an opportunity for this market to be directly developed and managed by a local, highly experienced partner. We have already met several potential candidates for consideration and we expect for this transition to be completed before the end of this fiscal year.' The company also revealed a planned exit from certain retail stores in North America. Alberini continued: 'In North America, we see an opportunity to streamline our Guess full price store portfolio by exiting non-strategic, unprofitable locations, and to reduce costs by consolidating some of our infrastructure supporting this business. Our fiscal 2026 outlook includes the anticipated impact from these actions and we expect that, together, they will unlock approximately $30 million in operating profit in fiscal 2027.' The developments were revealed as the company announced its fourth quarter and full fiscal year 2025 (FY25) operational performance results. It reported a significant contraction in net earnings, down 70% to $60.4m for FY25 from the previous year's $198.2m. Earnings include an unrealised loss of $60.7m stemming from a revaluation of derivatives linked to the firm's convertible senior notes maturing in 2028, and associated hedge instruments. A substantial reduction was also observed in the company's diluted earnings per share, which fell 75% to $0.77 based on generally accepted accounting principles (GAAP), compared to $3.09 in FY24. Despite these challenges, Guess? experienced an 8% surge in total net revenue, reaching $3.00bn for the fiscal year concluding on 1 February 2025, up from $2.78bn the previous year. Operational earnings for Guess? in FY25 were adversely affected, witnessing a 34% decline to $173.8m from $263.3m recorded in fiscal 2024. In the fourth quarter of fiscal 2025, Guess? saw net earnings of $81.4m, marking a decrease of 29% from the corresponding quarter of the previous year, which stood at $115.3m. This included an unrealised loss of $18.9m due to derivative revaluation. EPS for the company during this quarter dropped by 32% to $1.16, while total net revenue for the period increased by 5% to $932.3m from $891.1m in the same quarter of the preceding year. GAAP operational earnings for the fourth quarter also decreased 28.4% to $103.6m compared to $144.8m in the same quarter of the previous year. The company ended the fiscal year with a total of 1,070 directly operated retail stores the Americas, Asia and Europe. Looking ahead to fiscal 2025, Guess? projects a net revenue increase ranging from 3.9% to 6.2%. The company anticipates operational earnings between $133m and $165m and projects an operating margin expansion of between 4.5% and 5.4%. On 2 April 2024, Guess? completed its acquisition of New York fashion label rag & bone through a partnership with WHP Global, acquiring all operating assets and assuming related liabilities of rag & bone's business operations. The company formed a joint venture with WHP Global that acquired rag & bone's intellectual property rights, integrating them into its existing business segments. In March 2025, WHP Global and Guess? reached a new licensing agreement with Signal Brands to boost the development of New York-based fashion brand rag & bone's handbags and small leather products line. In separate development, Guess? appointed Alberto Toni as the chief financial officer (CFO). Dennis Secor, who has served as interim CFO, will continue as executive vice-president until 12 September 2025 to ensure a smooth transition. "Guess? to exit some retail stores in North America to boost profit by FY27" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Miami Herald
05-04-2025
- Business
- Miami Herald
Another popular mall retailer closing stores nationwide for good
The retail climate in America has been rough for the past few years. Anchor stores - i.e., the major department stores you tend to see at either end of a mall - have shuttered in record numbers. No one could have predicted the long-lasting impact of the 2020 Covid pandemic and how it would alter shopping habits, maybe forever. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter The pandemic kept people at home, and we all started to rely on the convenience of online shopping for everything from groceries and books to clothing and makeup. Foot traffic in malls has not returned to pre-pandemic levels, and it's hard to stay profitable if no one is walking through your door. Related: Iconic retail brand closing stores nationwide for good (locations revealed) Anchor retailers like JCPenney, Macy's, and Kohl's have faced headwinds and shut multiple locations, as have specialty stores such as Victoria's Secret. While not an anchor store at malls in the U.S. or elsewhere, specialty retailer Guess has more than 1,500 stores around the world and has been a mall staple for decades. The company was founded in 1981 by the four Marciano brothers, who moved to the U.S. from France. The brothers launched their company with a single style of jeans for women, "The Marilyn" - perhaps the original skinny jean? - which featured zippers at the ankles. The jeans were a wardrobe must-have for '80s and '90s girlies, their popularity partly driven by the brand's provocative advertising. After their launch, the jeans quickly sold out, and the company eventually added other styles, plus accessories like shoes, handbags and wristwatches. The company now has several brands under its umbrella, including Marciano and G by Guess, along with its first acquisition, rag & bone, which it acquired in 2024, in partnership with WHP Global. WHP Global also owns other popular denim brands like Joe's Jeans and G-star, among others. Related: Giant discount retailer closes stores, sounds the alarm Nearly half of Guess stores are in Europe and the Middle East. There are another 398 stores in Asia and the Pacific and 221 in the U.S., including 54 stores in California. Two of the Marciano brothers still own the company, although CEO Carlos Alberini owns a significant share of the company. In fiscal 2024, Guess's total net revenue increased 3.3% year over year to $2.78 billion but profits were way down in Q4, when Guess saw net earnings down 30% year over year to $84 million. In this month's earning's call, Alberini said the company will close 20 underperforming stores this year across North America. He said some of the stores will close when their leases end and the company will work with landlords to exit the others. The affected locations have not yet been shared publicly. Alberini cited "traffic declines" in retail stores as the reason for the closures but also said during the call that Guess plans to open new stores in Tokyo and West Hollywood. "For the full year, we expect U.S. dollar revenue growth in the range between 3.9% and 6.2%, with the core Guess brand and rag & bone both contributing significantly to that growth," he said. Closing the stores will unlock around $30 million in operating profits in fiscal 2027, according to Alberini. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
04-04-2025
- Business
- Yahoo
Guess? Stock Falls on Plans to Shake Up Operations in China, North America
Guess? plans to turn over its direct operations in China to a local partner and reduce its North American footprint. The fashion clothing and accessories maker's outlook was below analysts' estimates. Guess? posted better-than-expected quarterly profit and (GES) shares slumped in early trading when the fashion clothing and accessories maker posted lower-than-expected guidance as it planned to shake up operations in China and North America. The company anticipates full-year fiscal 2026 adjusted earnings per share (EPS) in the range of $1.32 to $1.76 and revenue higher by 3.9% to 6.2%. Analysts surveyed by Visible Alpha were looking for adjusted EPS of $1.97 and revenue up 8.3%. CEO Carlos Alberini explained that Guess? will be focusing "on increasing direct-to-consumer sales productivity globally and improving profitability through business and portfolio optimization." To do that, it will end its direct operations in Greater China, which will instead be "directly developed and managed by a local, highly experienced partner." In addition, Alberini said that in North America the company will "streamline our Guess full price store portfolio by exiting non-strategic, unprofitable locations, and to reduce costs by consolidating some of our infrastructure supporting this business." The news offset strong fourth-quarter fiscal 2025 results. Adjusted EPS came in at $1.48 and revenue rose 5% to $932.3 million. Both exceeded Visible Alpha forecasts. Guess? also announced the appointment of Alberto Toni as CFO. Shares of Guess? had already lost nearly 30% of their value this year entering Friday and were down a further 3% soon before the opening bell. Read the original article on Investopedia Sign in to access your portfolio
The Guardian
15-02-2025
- Health
- The Guardian
Why can't we remember our lives as babies or toddlers?
Life must be great as a baby: to be fed and clothed and carried places in soft pouches, to be waved and smiled at by adoring strangers, to have the temerity to scream because food hasn't arrived quickly enough, and then to throw it on the ground when it is displeasing. It's a shame none of us recalls exactly how good we once had it. At Christmas, I watched my daughter, somehow already a toddler, being passed between her grandfathers and thought, wistfully: she won't remember any of this. In parks, I push her endlessly on swings, making small talk with fellow parents who have been yoked into Sisyphean servitude, and think, ruefully: why won't she remember any of this? Sign up for Guardian Australia's breaking news email In 1905, Sigmund Freud coined the term 'infantile amnesia', referring to 'the peculiar amnesia which, in the case of most people, though by no means all, hides the earliest beginnings of their childhood'. More than a century later, psychologists are still intrigued by why we can't remember our earliest experiences. 'Most adults do not have memories before two to three years of age,' says Prof Qi Wang at Cornell University. Up until about age seven, memories of childhood are typically patchy. Until relatively recently, researchers thought that young brains weren't developed enough to form lasting memories. But studies in the 1980s showed that toddlers as young as two can form memories and recall events from months earlier in great detail. Exposure to early childhood trauma is also well documented to increase the risk of later anxiety and depression. The paradox of infantile amnesia, says Cristina Alberini, a professor of neural science at New York University, is 'how is it that those experiences affect our life forever if they are forgotten?' Alberini's research in animals has found that memories formed during the infantile amnesia period are, in fact, stored in the brain until adulthood, even though they aren't consciously remembered. In both animal and human adults, forming and storing long-term memories about one's life experiences isn't possible without a region of the brain known as the hippocampus. Alberini's work has shown that the region is also important in early memories and suggests that infantile amnesia occurs because of a critical period where the hippocampus develops due to new experiences. 'It makes a lot of sense with all the literature of trauma,' she says. 'If the children are learning difficult situations in early childhood, maybe they don't remember the specifics, but their brains are going to be shaped according to that experience.' Differing experiences may also explain why the age at which people recall their first memories varies significantly. Wang, an expert in how culture affects autobiographical memory, has shown that the earliest memories in Americans date from an age of about 3.5 years, almost six months younger than in Chinese people. The American memories tended to be more self-focused and emotionally elaborate, while the Chinese recollections tended to centre on collective activities and general routines, she found. 'In the Asian context, identity and sense of self is less defined by being unique, but [more] about your roles and your relationship with others,' Wang says. To that end, memories may be less important for defining identity than for informing behaviour and imparting lessons. 'If you want to use memory to construct a unique sense of identity, you probably remember a lot of idiosyncratic details,' Wang says. Another explanation for the discrepancy seems to be how parents discuss past experiences with their children. In New Zealand Māori, first memories emerge earlier than in those of a European background, at about 2.5 years old. Prof Elaine Reese at the University of Otago, who studies autobiographical memory in children and adolescents, points to a strong emphasis on oral traditions in Māori culture but also elaborative conversations when reminiscing about past events. Reese has tracked groups of children from toddlerhood to adolescence, finding that individuals who had richer narrative environments in childhood could recall earlier and more detailed first memories as teenagers. This was the case for children whose mothers asked open-ended questions and were more detailed when talking about shared past experiences, as well as children who grew up in extended family households. 'We know that from the time [children] are, say, six-month-old babies, they're capable of some kind of mental imagery of something that happened from the previous day or week,' Reese says. 'It's taking that mental image and describing it in words that I think is so important for helping them to hold on to that memory over a lifetime.' Sign up to Afternoon Update Our Australian afternoon update breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Ironically, for parenting influencers who post about elaborate holidays in the name of creating 'core memories', the early events that children retain can be surprisingly mundane – 'things that most parents would never reminisce elaboratively about', Reese says. 'The classic example from my own research is a child who remembers seeing a worm on the footpath one time.' There is debate between memory experts as to the role of language in infantile amnesia. Human researchers suggest memories may be limited by an inability to give language to early experiences. 'But there must be something more fundamental that also plays a role because we see this same [infantile amnesia] effect in non-linguistic animals like rats,' says Prof Rick Richardson of the University of New South Wales. The brain lays down memories not as discrete files as on a computer but as networks of neurons across the brain. Recalling a memory activates those networks and strengthens the links between neurons. This is not to say memory is stable: 'Every time you revisit a memory and think about it, you're changing it,' Reese says. Repeated suggestions can lead people to create images and form false memories, Wang says, citing a famous case in Jean Piaget, the influential child development psychologist. Piaget had a clear memory of his nanny fighting off a would-be kidnapper when he was two – but years later, she confessed that she had fabricated the story. In a 2018 survey, 39% of respondents reported their first memories occurred at age two or younger. The researchers suggested that 'improbably early' memories, such as recollections of being pushed in a pram or walking for the first time, were likely fictional and based on photographs or family stories. But though memory is malleable and young children are more suggestible, 'confabulation is not that common', Wang says. 'Under normal conditions, even children do not just take for granted whatever you tell them and incorporate those memories.' So if experiences of our early milestones – first birthday, first steps, first trip to the beach – seem to be cached somewhere in the brain, why can't we consciously access them? While psychologists say it can be adaptive to forget, that doesn't explain why the memories formed before age seven seem to decay faster than when we're adults. Alberini hypothesises that early unrecalled memories may function as schemas upon which adult memories are built. Like the foundations of a home, they remain concealed but crucial.
