The following is a summary of the unaudited quarterly financial information for fiscal 2018 and fiscal 2017 (in thousands, except per share data):



	Quarterly Periods Ended (1)
Year Ended February 3, 2018	Apr 29, 2017			Jul 29, 2017		Oct 28, 2017			Feb 3, 2018
Net revenue (2)	$	454,345		$	568,292	$	548,953		$	792,164
Gross profit	144,642			198,027		191,109			295,070
Net earnings (loss)	(21,227		)	15,881		(1,662		)	3,107
Net earnings (loss) attributable to Guess?, Inc.	(21,293		)	15,219		(2,860		)	1,040
Net earnings (loss) per common share attributable to common stockholders: (3) (4) (5) (6)
Basic	$	(0.26	)	$	0.18	$	(0.04	)	$	0.01
Diluted	$	(0.26	)	$	0.18	$	(0.04	)	$	0.01



	Quarterly Periods Ended (1)
Year Ended January 28, 2017	Apr 30, 2016			Jul 30, 2016		Oct 29, 2016		Jan 28, 2017
Net revenue (2)	$	444,061		$	540,412	$	531,976	$	674,004
Gross profit	142,759			185,632		180,242		236,407
Net earnings	(25,154		)	32,167		9,729		8,656
Net earnings attributable to Guess?, Inc.	(25,178		)	32,269		9,103		6,567
Net earnings per common share attributable to common stockholders: (3) (4) (5) (7) (8) (9)
Basic	$	(0.30	)	$	0.38	$	0.11	$	0.08
Diluted	$	(0.30	)	$	0.38	$	0.11	$	0.08

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(1)	All fiscal quarters presented consisted of 13 weeks with the exception of the quarter ended February 3, 2018 which consisted of 14 weeks.

(2)

During the fourth quarter of fiscal 2018, the Company reclassified net royalties received on the Company’s inventory purchases of licensed product from net revenue to cost of product sales. Accordingly, prior period amounts related to net royalties, net revenue and cost of product sales have been adjusted to conform to the current period presentation. This resulted in a decrease to net revenue and cost of product sales of $4.2 million, $5.4 million and $5.2 million during the first, second and third quarters of fiscal 2018, respectively. This also resulted in a decrease to net revenue and cost of product sales of $4.8 million, $4.5 million, $4.3 million and $5.3 million during the first, second, third and fourth quarters of fiscal 2017, respectively. This reclassification had no impact on previously reported gross profit, net earnings (loss) or net earnings (loss) per share. Refer to Note 1 for further information regarding this reclassification.


(3)	Per common share amounts for the quarters and full years have been calculated separately. Accordingly, quarterly amounts may not add to the annual amount because of differences in the average common shares outstanding during each period.

(4)

The Company recorded net gains (losses) on lease terminations of $(11.5) million and $0.1 million during the third and fourth quarters of fiscal 2018, respectively. There were no net gains (losses) on lease terminations recognized during the first or second quarters of fiscal 2018. During the first and second quarters of fiscal 2017, the Company recorded net gains on lease terminations of $0.1 million and $0.6 million, respectively. There were no net gains (losses) on lease terminations recognized during the third or fourth quarters of fiscal 2017. Refer to Note 1 for further information regarding net gains (losses) on lease terminations.

(5)

During each of the periods presented, the Company recognized asset impairment charges for certain retail locations resulting from under-performance and expected store closures. The Company recorded asset impairment charges of $2.8 million, $1.2 million, $2.0 million and $2.5 million, respectively, during the first, second, third and fourth quarters of fiscal 2018. The Company also recorded asset impairment charges of $0.2 million, $0.5 million, $0.8 million and $32.9 million, respectively, during the first, second, third and fourth quarters of fiscal 2017. Refer to Note 5 for further detail regarding asset impairment charges.

(6)

During fiscal 2018, the Company recognized additional tax expense of $47.9 million related to the enactment of the Tax Reform. This is comprised of a $24.9 million charge for the provisional re-measurement of certain deferred taxes and related amounts and a provisional charge of $23.0 million to income tax expense for the estimated effects of the transitional tax on the deemed repatriation of foreign earnings. These charges were recorded during the fourth quarter of fiscal 2018. Refer to Note 11 for further detail.


(7)	During fiscal 2017, the Company recorded restructuring charges of $6.1 million and a related estimated exit tax charge of approximately $1.9 million. The restructuring charges and related estimated exit tax charge were recorded during the three months ended April 30, 2016. Refer to Note 9 for further detail regarding these charges.


(8)	During fiscal 2017, the Company sold its minority interest equity holding in a privately-held boutique apparel company for net proceeds of approximately $34.8 million, which resulted in a gain of approximately $22.3 million which was recorded in other income. The gain was recorded during the three months ended July 30, 2016.

(9)

During fiscal 2017, the Company recorded valuation reserves of $6.8 million resulting from jurisdictions where there have been cumulative net operating losses, limiting the Company’s ability to consider other subjective evidence to continue to recognize the existing deferred tax assets. The Company recorded the valuation reserve during the three months ended January 28, 2017. Refer to Note 11 for further detail.