Guess? to exit some retail stores in North America to boost profit by FY27

GlobalData

Mon, Apr 7, 2025, 2:38 AM 4 min read

Fashion covering and accessories Guess? has disclosed plans to streamline operations and optimise its portfolios successful China and North America.

The institution intends to crook implicit its nonstop operations successful China to a section partner.

Guess? main enforcement serviceman Carlos Alberini stated: “As we participate fiscal twelvemonth 2026, we are excited astir our maturation opportunities for our halfway Guess business, our precocious launched Guess Jeans marque and our conscionable acquired rag & bony business. We are focusing our strategical initiatives connected expanding direct-to-consumer income productivity globally and improving profitability done concern and portfolio optimisation.

"In transportation with this, aft galore years of moving our ain nonstop operations successful Greater China, we judge determination is an accidental for this marketplace to beryllium straight developed and managed by a local, highly experienced partner. We person already met respective imaginable candidates for information and we expect for this modulation to beryllium completed earlier the extremity of this fiscal year.”

The institution besides revealed a planned exit from definite retail stores successful North America.

Alberini continued: “In North America, we spot an accidental to streamline our Guess afloat terms store portfolio by exiting non-strategic, unprofitable locations, and to trim costs by consolidating immoderate of our infrastructure supporting this business. Our fiscal 2026 outlook includes the anticipated interaction from these actions and we expect that, together, they volition unlock astir $30 cardinal successful operating nett successful fiscal 2027.”

The developments were revealed arsenic the institution announced its 4th fourth and afloat fiscal twelvemonth 2025 (FY25) operational show results.

It reported a important contraction successful nett earnings, down 70% to $60.4m for FY25 from the erstwhile year's $198.2m.

Earnings see an unrealised nonaccomplishment of $60.7m stemming from a revaluation of derivatives linked to the firm's convertible elder notes maturing successful 2028, and associated hedge instruments.

A important simplification was besides observed successful the company's diluted net per share, which fell 75% to $0.77 based connected mostly accepted accounting principles (GAAP), compared to $3.09 successful FY24.

Despite these challenges, Guess? experienced an 8% surge successful full nett revenue, reaching $3.00bn for the fiscal twelvemonth concluding connected 1 February 2025, up from $2.78bn the erstwhile year.

Operational net for Guess? successful FY25 were adversely affected, witnessing a 34% diminution to $173.8m from $263.3m recorded successful fiscal 2024.

In the 4th fourth of fiscal 2025, Guess? saw nett net of $81.4m, marking a alteration of 29% from the corresponding 4th of the erstwhile year, which stood astatine $115.3m.