(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class | Trading symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). |
Emerging growth company | ||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ |
Exhibit No. | Description | |||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document |
Dated: | May 30, 2024 | GUESS?, INC. | |||||||||
By: | /s/ Markus Neubrand | ||||||||||
Markus Neubrand Chief Financial Officer |
Exhibit 99.1 |
Outlook for Total Company1 | |||||||||||||||||
Second Quarter of Fiscal 2025 | Fiscal 2025 | ||||||||||||||||
Consolidated net revenue in U.S. dollars | increase between 9.0% and 11.0% | increase between 10.7% and 12.7% | |||||||||||||||
GAAP operating margin | 5.3% to 6.1% | 7.3% to 8.1% | |||||||||||||||
Adjusted operating margin | 5.3% to 6.1% | 7.7% to 8.5% | |||||||||||||||
GAAP diluted EPS | $0.33 to $0.40 | $2.59 to $2.89 | |||||||||||||||
Adjusted diluted EPS | $0.38 to $0.47 | $2.62 to $3.00 | |||||||||||||||
______________________________________________________________________ |
Reconciliation of GAAP Outlook to Adjusted Outlook1 | |||||||||||||||||
Second Quarter of Fiscal 2025 | Fiscal 2025 | ||||||||||||||||
GAAP operating margin | 5.3% to 6.1% | 7.3% to 8.1% | |||||||||||||||
Certain professional service and legal fees and related (credits) costs2 | —% | —% | |||||||||||||||
Transaction costs2 | —% | 0.2% | |||||||||||||||
Separation charges2 | —% | 0.2% | |||||||||||||||
Asset impairment charges2 | —% | —% | |||||||||||||||
Adjusted operating margin | 5.3% to 6.1% | 7.7% to 8.5% | |||||||||||||||
GAAP diluted EPS | $0.33 to $0.40 | $2.59 to $2.89 | |||||||||||||||
Certain professional service and legal fees and related (credits) costs2 | — | — | |||||||||||||||
Transaction costs2 | — | 0.06 | |||||||||||||||
Separation charges2 | — | 0.06 | |||||||||||||||
Asset impairment charges2 | — | 0.01 | |||||||||||||||
Loss on extinguishment of debt2 | — | 0.02 | |||||||||||||||
Amortization of debt discount3 | 0.01 | 0.03 | |||||||||||||||
Fair value remeasurement of derivatives2 | — | (0.55) | |||||||||||||||
Discrete income tax adjustments2 | — | — | |||||||||||||||
Convertible notes if-converted method3 | $0.04 to $0.06 | $0.40 to $0.48 | |||||||||||||||
Adjusted diluted EPS | $0.38 to $0.47 | $2.62 to $3.00 | |||||||||||||||
______________________________________________________________________________ |
Free Cash Flow Outlook for Total Company1 | |||||||||||||||||
Fiscal 2025 | |||||||||||||||||
Net cash provided by operating activities | $260 | ||||||||||||||||
Less: Purchases of property and equipment | (90) | ||||||||||||||||
Less: Payments for property and equipment under finance leases | (10) | ||||||||||||||||
Free cash flow | $160 | ||||||||||||||||
______________________________________________________________________ |
Contact: | Guess?, Inc. | |||||||
Fabrice Benarouche | ||||||||
Senior Vice President Finance, Investor Relations and Chief Accounting Officer | ||||||||
(213) 765-5578 | ||||||||
Source: | Guess?, Inc. |
Guess?, Inc. and Subsidiaries | |||||||||||||||||||||||
Condensed Consolidated Statements of Income (Loss) | |||||||||||||||||||||||
(amounts in thousands, except per share data) | |||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||||||||||||||
Product sales | $ | 562,953 | 95.1 | % | $ | 545,910 | 95.8 | % | |||||||||||||||
Net royalties | 28,990 | 4.9 | % | 23,888 | 4.2 | % | |||||||||||||||||
Net revenue | 591,943 | 100.0 | % | 569,798 | 100.0 | % | |||||||||||||||||
Cost of product sales | 343,842 | 58.1 | % | 337,813 | 59.3 | % | |||||||||||||||||
Gross profit | 248,101 | 41.9 | % | 231,985 | 40.7 | % | |||||||||||||||||
Selling, general and administrative expenses | 266,848 | 45.1 | % | 230,973 | 40.6 | % | |||||||||||||||||
Asset impairment charges | 1,141 | 0.2 | % | 1,934 | 0.3 | % | |||||||||||||||||
Loss from operations | (19,888) | (3.4 | %) | (922) | (0.2 | %) | |||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense | (6,374) | (1.1 | %) | (4,218) | (0.7 | %) | |||||||||||||||||
Interest income | 3,648 | 0.6 | % | 2,515 | 0.4 | % | |||||||||||||||||
Loss on extinguishment of debt | (1,952) | (0.3 | %) | (7,696) | (1.4 | %) | |||||||||||||||||
Other, net | 35,767 | 6.1 | % | (2,631) | (0.4 | %) | |||||||||||||||||
Earnings (loss) before income tax benefit | 11,201 | 1.9 | % | (12,952) | (2.3 | %) | |||||||||||||||||
Income tax benefit | (4,705) | (0.8 | %) | (2,258) | (0.4 | %) | |||||||||||||||||
Net earnings (loss) | 15,906 | 2.7 | % | (10,694) | (1.9 | %) | |||||||||||||||||
Net earnings attributable to noncontrolling interests | 2,884 | 0.5 | % | 1,111 | 0.2 | % | |||||||||||||||||
Net earnings (loss) attributable to Guess?, Inc. | $ | 13,022 | 2.2 | % | $ | (11,805) | (2.1 | %) | |||||||||||||||
Net earnings (loss) per common share attributable to common stockholders: | |||||||||||||||||||||||
Basic | $ | 0.24 | $ | (0.22) | |||||||||||||||||||
Diluted | $ | 0.23 | $ | (0.22) | |||||||||||||||||||
Weighted average common shares outstanding attributable to common stockholders: | |||||||||||||||||||||||
Basic | 52,908 | 54,348 | |||||||||||||||||||||
Diluted | 55,538 | 54,348 | |||||||||||||||||||||
Effective income tax rate | (42.0 | %) | 17.4 | % | |||||||||||||||||||
Adjusted selling, general and administrative expenses4: | $ | 255,785 | 43.2 | % | $ | 230,062 | 40.4 | % | |||||||||||||||
Adjusted earnings (loss) from operations4: | $ | (7,684) | (1.3 | %) | $ | 1,923 | 0.3 | % | |||||||||||||||
Adjusted net loss attributable to Guess?, Inc.4: | $ | (13,810) | (2.3 | %) | $ | (3,487) | (0.6 | %) | |||||||||||||||
Adjusted weighted average common shares outstanding attributable to common stockholders: | |||||||||||||||||||||||
Adjusted Diluted4,5 | 52,908 | 54,348 | |||||||||||||||||||||
Adjusted net loss per common share attributable to common stockholders: | |||||||||||||||||||||||
Adjusted Diluted4,5 | $ | (0.27) | $ | (0.07) | |||||||||||||||||||
Adjusted effective income tax rate4: | 12.3 | % | 0.4 | % | |||||||||||||||||||
__________________________________________________________________ |
Guess?, Inc. and Subsidiaries | ||
Reconciliation of GAAP Results to Adjusted Results | ||
(dollars in thousands) |
Three Months Ended | |||||||||||||||||||||||
May 4, 2024 | April 29, 2023 | ||||||||||||||||||||||
Reported GAAP selling, general and administrative expenses | $ | 266,848 | $ | 230,973 | |||||||||||||||||||
Certain professional service and legal fees and related credits (costs)6 | (60) | (911) | |||||||||||||||||||||
Transaction costs7 | (5,584) | — | |||||||||||||||||||||
Separation charges8 | (5,419) | — | |||||||||||||||||||||
Adjusted selling, general and administrative expenses4 | $ | 255,785 | $ | 230,062 | |||||||||||||||||||
Reported GAAP loss from operations | $ | (19,888) | $ | (922) | |||||||||||||||||||
Certain professional service and legal fees and related (credits) costs6 | 60 | 911 | |||||||||||||||||||||
Transaction costs7 | 5,584 | — | |||||||||||||||||||||
Separation charges8 | 5,419 | — | |||||||||||||||||||||
Asset impairment charges9 | 1,141 | 1,934 | |||||||||||||||||||||
Adjusted earnings (loss) from operations4 | $ | (7,684) | $ | 1,923 | |||||||||||||||||||
Reported GAAP net earnings (loss) attributable to Guess?, Inc. | $ | 13,022 | $ | (11,805) | |||||||||||||||||||
Certain professional service and legal fees and related (credits) costs6 | 60 | 911 | |||||||||||||||||||||
Transaction costs7 | 5,584 | — | |||||||||||||||||||||
Separation charges8 | 5,419 | — | |||||||||||||||||||||
Asset impairment charges9 | 1,141 | 1,934 | |||||||||||||||||||||
Loss on extinguishment of debt10 | 1,952 | 7,696 | |||||||||||||||||||||
Amortization of debt discount11 | 700 | 25 | |||||||||||||||||||||
Fair value remeasurement of derivatives12 | (38,510) | — | |||||||||||||||||||||
Discrete income tax adjustments13 | 281 | 248 | |||||||||||||||||||||
Income tax impact from adjustments14 | (3,459) | (2,496) | |||||||||||||||||||||
Total adjustments affecting net earnings (loss) attributable to Guess?, Inc. | (26,832) | 8,318 | |||||||||||||||||||||
Adjusted net loss attributable to Guess?, Inc.4 | $ | (13,810) | $ | (3,487) | |||||||||||||||||||
Reported GAAP income tax benefit | $ | (4,705) | $ | (2,258) | |||||||||||||||||||
Discrete income tax adjustments13 | (281) | (248) | |||||||||||||||||||||
Income tax impact from adjustments14 | 3,459 | 2,496 | |||||||||||||||||||||
Adjusted income tax benefit4 | $ | (1,527) | $ | (10) | |||||||||||||||||||
Adjusted effective income tax rate4 | 12.3 | % | 0.4 | % | |||||||||||||||||||
Reported GAAP diluted earnings (loss) per share | $ | 0.23 | $ | (0.22) | |||||||||||||||||||
Certain professional service and legal fees and related (credits) costs6,15 | 0.00 | 0.01 | |||||||||||||||||||||
Transaction costs7,15 | 0.08 | — | |||||||||||||||||||||
Separation charges8,15 | 0.07 | — | |||||||||||||||||||||
Asset impairment charges9,15 | 0.02 | 0.03 | |||||||||||||||||||||
Loss on extinguishment of debt10,15 | 0.03 | 0.11 | |||||||||||||||||||||
Amortization of debt discount11,15 | 0.01 | 0.00 | |||||||||||||||||||||
Fair value remeasurement of derivatives12 | (0.69) | — | |||||||||||||||||||||
Discrete income tax adjustments13 | 0.01 | 0.00 | |||||||||||||||||||||
Convertible notes if-converted method5 | 0.00 | — | |||||||||||||||||||||
Effect of dilutive stock options and restricted stock units16 | (0.03) | — | |||||||||||||||||||||
Adjusted diluted loss per share4,5 | $ | (0.27) | $ | (0.07) | |||||||||||||||||||
__________________________________________________________________ |
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
Consolidated Segment Data | ||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
May 4, 2024 | April 29, 2023 | % change | ||||||||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||||||||
Europe | $ | 283,873 | $ | 280,198 | 1% | |||||||||||||||||||||||||||
Americas Retail | 144,196 | 143,544 | 0% | |||||||||||||||||||||||||||||
Americas Wholesale | 62,128 | 51,393 | 21% | |||||||||||||||||||||||||||||
Asia | 72,756 | 70,775 | 3% | |||||||||||||||||||||||||||||
Licensing | 28,990 | 23,888 | 21% | |||||||||||||||||||||||||||||
Total net revenue | $ | 591,943 | $ | 569,798 | 4% | |||||||||||||||||||||||||||
Earnings (loss) from operations: | ||||||||||||||||||||||||||||||||
Europe | $ | (439) | $ | 1,593 | (128%) | |||||||||||||||||||||||||||
Americas Retail | (10,391) | (3,287) | 216% | |||||||||||||||||||||||||||||
Americas Wholesale | 14,127 | 13,093 | 8% | |||||||||||||||||||||||||||||
Asia | 3,741 | 3,830 | (2%) | |||||||||||||||||||||||||||||
Licensing | 26,678 | 22,295 | 20% | |||||||||||||||||||||||||||||
Total segment earnings from operations | 33,716 | 37,524 | (10%) | |||||||||||||||||||||||||||||
Corporate overhead | (52,463) | (36,512) | 44% | |||||||||||||||||||||||||||||
Asset impairment charges | (1,141) | (1,934) | (41%) | |||||||||||||||||||||||||||||
Total loss from operations | $ | (19,888) | $ | (922) | 2,057% | |||||||||||||||||||||||||||
Operating margins: | ||||||||||||||||||||||||||||||||
Europe | (0.2 | %) | 0.6 | % | ||||||||||||||||||||||||||||
Americas Retail | (7.2 | %) | (2.3 | %) | ||||||||||||||||||||||||||||
Americas Wholesale | 22.7 | % | 25.5 | % | ||||||||||||||||||||||||||||
Asia | 5.1 | % | 5.4 | % | ||||||||||||||||||||||||||||
Licensing | 92.0 | % | 93.3 | % | ||||||||||||||||||||||||||||
GAAP operating margin for total Company | (3.4 | %) | (0.2 | %) | ||||||||||||||||||||||||||||
Certain professional service and legal fees and related (credits) costs4,6 | 0.0 | % | 0.2 | % | ||||||||||||||||||||||||||||
Transaction costs4,7 | 1.0 | % | — | % | ||||||||||||||||||||||||||||
Separation charges4,8 | 0.9 | % | — | % | ||||||||||||||||||||||||||||
Asset impairment charges4,9 | 0.2 | % | 0.3 | % | ||||||||||||||||||||||||||||
Adjusted operating margin for total Company4 | (1.3 | %) | 0.3 | % | ||||||||||||||||||||||||||||
______________________________________________________________________ | ||||||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Constant Currency Financial Measures | ||||||||||||||||||||||||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
As Reported | Foreign Currency Impact | Constant Currency | As Reported | As Reported | Constant Currency | |||||||||||||||||||||||||||||||||
May 4, 2024 | April 29, 2023 | |||||||||||||||||||||||||||||||||||||
Three Months Ended | % change | |||||||||||||||||||||||||||||||||||||
Net revenue: | ||||||||||||||||||||||||||||||||||||||
Europe | $ | 283,873 | $ | 16,435 | $ | 300,308 | $ | 280,198 | 1% | 7% | ||||||||||||||||||||||||||||
Americas Retail | 144,196 | (1,047) | 143,149 | 143,544 | 0% | (0%) | ||||||||||||||||||||||||||||||||
Americas Wholesale | 62,128 | (1,378) | 60,750 | 51,393 | 21% | 18% | ||||||||||||||||||||||||||||||||
Asia | 72,756 | 2,659 | 75,415 | 70,775 | 3% | 7% | ||||||||||||||||||||||||||||||||
Licensing | 28,990 | — | 28,990 | 23,888 | 21% | 21% | ||||||||||||||||||||||||||||||||
Total net revenue | $ | 591,943 | $ | 16,669 | $ | 608,612 | $ | 569,798 | 4% | 7% | ||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||||||
Selected Condensed Consolidated Balance Sheet Data | ||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||
May 4, 2024 | February 3, 2024 | April 29, 2023 | ||||||||||||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 241,654 | $ | 360,285 | $ | 298,642 | ||||||||||||||||||||||||||||||||
Receivables, net | 297,422 | 314,769 | 286,314 | |||||||||||||||||||||||||||||||||||
Inventories | 554,903 | 466,297 | 528,903 | |||||||||||||||||||||||||||||||||||
Other current assets | 113,548 | 84,122 | 98,820 | |||||||||||||||||||||||||||||||||||
Property and equipment, net | 259,386 | 246,648 | 239,747 | |||||||||||||||||||||||||||||||||||
Restricted cash | 1,377 | — | — | |||||||||||||||||||||||||||||||||||
Operating lease right-of-use assets | 720,924 | 667,031 | 645,713 | |||||||||||||||||||||||||||||||||||
Other assets | 559,427 | 450,869 | 342,583 | |||||||||||||||||||||||||||||||||||
Total assets | $ | 2,748,641 | $ | 2,590,021 | $ | 2,440,722 | ||||||||||||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||
Current portion of borrowings and finance lease obligations | $ | 41,504 | $ | 40,781 | $ | 39,092 | ||||||||||||||||||||||||||||||||
Current operating lease liabilities | 181,702 | 166,451 | 172,628 | |||||||||||||||||||||||||||||||||||
Current portion of convertible senior notes due 2024, net | — | 48,048 | 114,812 | |||||||||||||||||||||||||||||||||||
Other current liabilities | 544,912 | 536,277 | 502,501 | |||||||||||||||||||||||||||||||||||
Long-term debt and finance lease obligations | 196,919 | 28,210 | 159,372 | |||||||||||||||||||||||||||||||||||
Convertible senior notes due 2028, net | 360,666 | 336,717 | 265,594 | |||||||||||||||||||||||||||||||||||
Long-term operating lease liabilities | 600,286 | 542,392 | 530,939 | |||||||||||||||||||||||||||||||||||
Other long-term liabilities | 214,819 | 155,829 | 153,392 | |||||||||||||||||||||||||||||||||||
Redeemable and nonredeemable noncontrolling interests | 42,360 | 50,376 | 50,392 | |||||||||||||||||||||||||||||||||||
Guess?, Inc. stockholders’ equity | 565,473 | 684,940 | 452,000 | |||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 2,748,641 | $ | 2,590,021 | $ | 2,440,722 | ||||||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
Condensed Consolidated Cash Flow Data | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
May 4, 2024 | April 29, 2023 | |||||||||||||||||||||||||||||||
Net cash used in operating activities | $ | (22,921) | $ | (12,658) | ||||||||||||||||||||||||||||
Net cash used in investing activities | (77,923) | (17,384) | ||||||||||||||||||||||||||||||
Net cash provided by (used in) financing activities | (15,720) | 53,305 | ||||||||||||||||||||||||||||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (690) | (386) | ||||||||||||||||||||||||||||||
Net change in cash, cash equivalents and restricted cash | (117,254) | 22,877 | ||||||||||||||||||||||||||||||
Cash and cash equivalents at the beginning of the year | 360,285 | 275,765 | ||||||||||||||||||||||||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | 243,031 | $ | 298,642 | ||||||||||||||||||||||||||||
Supplemental information: | ||||||||||||||||||||||||||||||||
Depreciation and amortization | $ | 16,379 | $ | 15,449 | ||||||||||||||||||||||||||||
Total lease costs (excluding finance lease cost) | $ | 84,135 | $ | 79,510 | ||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||
Reconciliation of Net Cash Used In Operating Activities to Free Cash Flow | ||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
May 4, 2024 | April 29, 2023 | |||||||||||||||||||||||||||||||
Net cash used in operating activities | $ | (22,921) | $ | (12,658) | ||||||||||||||||||||||||||||
Less: Purchases of property and equipment | (21,100) | (17,347) | ||||||||||||||||||||||||||||||
Less: Payments for property and equipment under finance leases | (1,533) | (1,490) | ||||||||||||||||||||||||||||||
Free cash flow | $ | (45,554) | $ | (31,495) | ||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
Retail Store Data | ||||||||||||||||||||||||||||||||||||||||||||
Global Store and Concession Count | ||||||||||||||||||||||||||||||||||||||||||||
Stores | Concessions | |||||||||||||||||||||||||||||||||||||||||||
Region | Total | Directly Operated | Partner Operated | Total | Directly Operated | Partner Operated | ||||||||||||||||||||||||||||||||||||||
As of May 4, 2024 | ||||||||||||||||||||||||||||||||||||||||||||
United States | 261 | 261 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Canada | 53 | 53 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Central and South America | 99 | 87 | 12 | 29 | 29 | — | ||||||||||||||||||||||||||||||||||||||
Total Americas | 413 | 401 | 12 | 29 | 29 | — | ||||||||||||||||||||||||||||||||||||||
Europe and the Middle East | 775 | 549 | 226 | 60 | 60 | — | ||||||||||||||||||||||||||||||||||||||
Asia and the Pacific | 393 | 98 | 295 | 240 | 134 | 106 | ||||||||||||||||||||||||||||||||||||||
Total | 1,581 | 1,048 | 533 | 329 | 223 | 106 | ||||||||||||||||||||||||||||||||||||||
As of April 29, 2023 | ||||||||||||||||||||||||||||||||||||||||||||
United States | 238 | 238 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Canada | 61 | 61 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Central and South America | 103 | 69 | 34 | 29 | 29 | — | ||||||||||||||||||||||||||||||||||||||
Total Americas | 402 | 368 | 34 | 29 | 29 | — | ||||||||||||||||||||||||||||||||||||||
Europe and the Middle East | 782 | 558 | 224 | 53 | 53 | — | ||||||||||||||||||||||||||||||||||||||
Asia and the Pacific | 404 | 117 | 287 | 244 | 135 | 109 | ||||||||||||||||||||||||||||||||||||||
Total | 1,588 | 1,043 | 545 | 326 | 217 | 109 | ||||||||||||||||||||||||||||||||||||||
Guess?, Inc. and Subsidiaries | ||||||||||||||||||||||||||||||||||||||||||||
Footnotes to Condensed Consolidated Financial Data |
1 | The Company’s outlook for the second quarter and full fiscal year 2025 assumes that foreign currency exchange rates remain at recently prevailing rates. | ||||
2 | Amounts for the full fiscal 2025 outlook exclude the following items: (i) certain professional service and legal fees and related (credits) costs which the Company otherwise would not have incurred as part of its business operations, (ii) transaction costs in connection with the rag & bone acquisition, (iii) separation charges related to the transition of the operation of the Company’s U.S. distribution center, (iv) asset impairment charges related primarily to impairment of property and equipment related to certain retail locations resulting from underperformance and expected store closures, (v) loss on extinguishment of debt related to the 2024 Notes, (vi) fair value remeasurement of derivatives associated with the 2028 Notes and (vii) discrete income tax adjustments. See the heading “Presentation of Non-GAAP Information” for further information. The Company is unable to predict future amounts with respect to these items, as such amounts are inconsistent in magnitude and frequency and certain elements used to estimate such items have not yet occurred or are out of the Company’s control. As such, the Company has not considered any future charges or credits with respect to these items in the accompanying GAAP outlook. | ||||
3 | Amounts for the second quarter and full fiscal 2025 outlook exclude (i) the amortization of the debt discount related to the 2028 Notes and (ii) the dilutive impact of the Notes for adjusted diluted shares and corresponding interest expenses at initial stock prices below $46.88 for the 2024 Notes and $41.80 for the 2028 Notes, based on the bond hedge contracts in place that will deliver shares to offset dilution. The Company excludes the impact anticipated to be recorded and the diluted impact anticipated in those periods as such amounts are reasonably estimated. The Company has not assumed any potential share dilution due to the related warrants. | ||||
4 | The adjusted results exclude certain professional service and legal fees and related (credits) costs, transaction costs in connection with the acquisition of rag & bone, separation charges related to the transition of the operation of the Company’s U.S. distribution center, asset impairment charges, loss on extinguishment of debt, amortization of debt discount, fair value remeasurement of derivatives associated with the 2028 Notes, the related income tax impacts of these adjustments, as well as certain discrete income tax adjustments, where applicable. The weighted average diluted shares outstanding used for adjusted diluted loss per share excludes the dilutive impact of the Notes, based on the bond hedge contracts in place. A reconciliation of actual results to adjusted results is presented in the “Reconciliation of GAAP Results to Adjusted Results.” | ||||
5 | The Company excludes the dilutive impact of the Notes at stock prices below $41.45 for the 2024 Notes and below $37.89 for the 2028 Notes, based on the bond hedge contracts in place that will deliver shares to offset dilution. At stock prices in excess of $41.45 for the 2024 Notes and $37.89 for the 2028 Notes, the Company would have an obligation to deliver additional shares in excess of the dilution protection provided by the bond hedges. | ||||
6 | Adjustments represent certain professional service and legal fees and related (credits) costs which the Company otherwise would not have incurred as part of its business operations. | ||||
7 | Adjustments represent transaction costs in connection with the rag & bone acquisition which the Company otherwise would not have incurred as part of its business operations. | ||||
8 | During the first quarter of fiscal 2025, the Company recorded separation charges related to the transition of the operation of the Company’s U.S. distribution center, which was formerly owner-operated, to a third-party logistics provider. | ||||
9 | Adjustments represent asset impairment charges related primarily to impairment of property and equipment related to certain retail locations resulting from under-performance and expected store closures. | ||||
10 | Adjustments represent loss on extinguishment of debt from a portion of the exchanged 2024 Notes in April 2023 and March 2024. | ||||
11 | In April 2023, January 2024 and March 2024, the Company issued $275 million, $65 million and $12 million principal amount of 3.75% convertible senior notes due 2028 in private offerings, respectively. The debt discount resulted from: (1) the modification accounting for a portion of the exchanged 2024 Notes in April 2023, and (2) recognized embedded derivative liability for the issuances of the Additional 2028 Notes. The debt discount will be amortized as non-cash interest expense over the term of the 2028 Notes. | ||||
12 | Adjustments represent changes in fair value of the equity-linked derivatives associated with the 2028 Notes. | ||||
13 | Adjustments represent discrete income tax items related primarily to the impact from changes in the income tax law in certain tax jurisdictions. | ||||
14 | The income tax effect of certain professional service and legal fees and related (credits) costs, transaction costs in connection with the acquisition of rag & bone, separation charges related to the transition of the operation of the Company’s U.S. distribution center, asset impairment charges, loss on extinguishment of debt and amortization of debt discount was based on the Company’s assessment of deductibility using the statutory income tax rate (inclusive of the impact of valuation allowances) of the tax jurisdiction in which the charges were incurred. | ||||
15 | Adjustments include the related income tax effect based on the Company’s assessment of deductibility using the statutory income tax rate (inclusive of the impact of valuation allowances) of the tax jurisdiction in which the charges were incurred. | ||||
16 | Adjustments represent the potentially dilutive impact of outstanding stock options and restricted stock units which are not included in the computation of diluted net loss per share as the impact would be antidilutive. |
Cover Page |
May 30, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 30, 2024 |
Entity Registrant Name | GUESS INC |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 1-11893 |
Entity Tax Identification Number | 95-3679695 |
Entity Address, Address Line One | Strada Regina 44 |
Entity Address, City or Town | Bioggio |
Entity Address, Country | CH |
Entity Address, Postal Zip Code | CH-6934 |
City Area Code | 41 |
Local Phone Number | 91 809 5000 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Trading Symbol | GES |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000912463 |
Amendment Flag | false |
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