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CONDENSED CONSOLIDATED STATEMENTS OF LOSS - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
May 05, 2018
Apr. 29, 2017
Income Statement [Abstract]    
Product sales $ 501,505 $ 438,320
Net royalties 19,784 16,025
Net revenue [1],[2] 521,289 454,345
Cost of product sales 347,351 309,703
Gross profit 173,938 144,642
Selling, general and administrative expenses 198,219 166,855
Net gains on lease terminations (152) 0
Asset impairment charges 759 2,762
Loss from operations [1],[3] (24,888) (24,975)
Other income (expense):    
Interest expense (739) (414)
Interest income 977 871
Other income (expense), net (2,614) 1,888
Total other income (expense) (2,376) 2,345
Loss before income tax benefit (27,264) (22,630)
Income tax benefit (6,277) (1,403)
Net loss (20,987) (21,227)
Net earnings attributable to noncontrolling interests 234 66
Net loss attributable to Guess, Inc. $ (21,221) $ (21,293)
Net loss per common share attributable to common stockholders (Note 3):    
Basic (in dollars per share) $ (0.27) $ (0.26)
Diluted (in dollars per share) $ (0.27) $ (0.26)
Weighted average common shares outstanding attributable to common stockholders (Note 3):    
Basic (in shares) 79,901 83,010
Diluted (in shares) 79,901 83,010
Dividends declared per common share (in dollars per share) $ 0.225 $ 0.225
[1] During the first quarter of fiscal 2019, the Company adopted a comprehensive new revenue recognition standard using a modified retrospective method that does not restate prior periods to be comparable to the current period presentation. The adoption of this guidance primarily impacted the presentation of advertising contributions received from the Company’s licensees and the related advertising expenditures incurred by the Company. The adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $2.3 million, as well as an increase in SG&A expenses in our Americas Retail, Americas Wholesale and Licensing segments as well as corporate overhead of $1.8 million, $0.7 million, $0.2 million and $0.6 million, respectively, during the three months ended May 5, 2018 compared to the same prior-year period. The net unfavorable impact on loss from operations was approximately $1.0 million during the three months ended May 5, 2018 compared to the same prior-year period. Refer to Note 1 for more information regarding the impact from the adoption of this new standard.
[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 to reflect its treatment as a reduction of the cost of such licensed product. Accordingly, net revenue for the three months ended April 29, 2017 has been adjusted to conform to the current period presentation. This reclassification had no impact on previously reported loss from operations.
[3] During the first quarter of fiscal 2019, the Company adopted new authoritative guidance which requires that the non-service components of net periodic defined benefit pension cost be presented outside of earnings (loss) from operations. Accordingly, loss from operations and segment results for the three months ended April 29, 2017 have been adjusted to conform to the current period presentation.