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CONDENSED CONSOLIDATED STATEMENTS OF LOSS
$ in Thousands, € in Millions, shares in Millions
3 Months Ended 9 Months Ended
Nov. 03, 2018
USD ($)
$ / shares
shares
Oct. 28, 2017
USD ($)
$ / shares
shares
Nov. 03, 2018
USD ($)
$ / shares
shares
Oct. 28, 2017
USD ($)
$ / shares
shares
Income Statement [Abstract]        
Product sales $ 583,121 $ 528,209 $ 1,710,788 $ 1,518,323
Net royalties 22,286 20,744 61,779 53,267
Net revenue [1],[2] 605,407 548,953 1,772,567 1,571,590
Cost of product sales 385,264 357,844 1,139,055 1,037,812
Gross profit 220,143 191,109 633,512 533,778
Selling, general and administrative expenses 197,943 178,009 600,731 517,871
European Commission fine 42,428 0 42,428 0
Asset impairment charges 1,277 2,018 5,017 6,013
Net (gains) losses on lease terminations 0 11,494 (152) 11,494
Loss from operations [1],[3] (21,505) (412) (14,512) (1,600)
Other income (expense):        
Interest expense (784) (684) (2,386) (1,642)
Interest income 783 891 2,892 3,022
Other income (expense), net (5,810) 2,216 (7,064) 1,935
Total other income (expense) (5,811) 2,423 (6,558) 3,315
Earnings (loss) before income tax expense (benefit) (27,316) 2,011 (21,070) 1,715
Income tax expense (benefit) (14,500) 3,673 (13,001) 8,723
Net loss (12,816) (1,662) (8,069) (7,008)
Net earnings attributable to noncontrolling interests 626 1,198 1,064 1,926
Net loss attributable to Guess, Inc. $ (13,442) $ (2,860) $ (9,133) $ (8,934)
Net loss per common share attributable to common stockholders (Note 3):        
Basic (in dollars per share) | $ / shares $ (0.17) $ (0.04) $ (0.12) $ (0.12)
Diluted (in dollars per share) | $ / shares $ (0.17) $ (0.04) $ (0.12) $ (0.12)
Weighted average common shares outstanding attributable to common stockholders (Note 3):        
Basic (in shares) | shares 80,189 82,390 80,067 82,599
Diluted (in shares) | shares 80,189 82,390 80,067 82,599
Dividends declared per common share (in dollars per share) | $ / shares $ 0.225 $ 0.225 $ 0.675 $ 0.675
[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 $2.7 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 $1.0 million, $0.6 million, $0.3 million and $0.6 million, respectively, during the three months ended November 3, 2018 compared to the same prior-year period. The net favorable impact on loss from operations was approximately $0.2 million during the three months ended November 3, 2018 compared to the same prior-year period. During the nine months ended November 3, 2018, the adoption of this guidance resulted in an increase in net royalty revenue within the Company’s Licensing segment of $7.1 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 $3.3 million, $1.5 million, $0.7 million and $1.7 million, respectively, during the nine months ended November 3, 2018 compared to the same prior-year period. The net unfavorable impact on loss from operations was approximately $0.1 million during the nine months ended November 3, 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 and nine months ended October 28, 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 and nine months ended October 28, 2017 have been adjusted to conform to the current period presentation.