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Guess? Inc. (GES-4.01%) has submitted its 10-Q filing for the quarterly period ended November 2, 2024.
The filing reports a net revenue increase of 13.4% to $738.5 million compared to $651.2 million in the same quarter of the previous year. The increase was driven by the acquisition of rag & bone and higher wholesale shipments.
Gross profit for the quarter was $321.9 million, up from $291.2 million in the previous year. However, the gross margin decreased to 43.6% from 44.7% due to higher expenses and the impact of newly acquired businesses.
Selling, general, and administrative expenses increased by 19.3% to $279.4 million, primarily due to higher advertising costs and store labor expenses.
The company reported a net loss of $23.4 million for the quarter, compared to net earnings of $55.7 million in the previous year. This loss was attributed to a $39.8 million net loss on the fair value remeasurement of derivatives related to convertible notes.
Guess? Inc. had $140.9 million in cash and cash equivalents as of November 2, 2024, with $5.0 million in outstanding term loan borrowings and $262.5 million in outstanding credit facility borrowings.
Inventory levels increased by 20.2% to $675.8 million, mainly due to the acquisition of rag & bone and higher in-transit inventory.
The company did not repurchase any shares during the quarter but has $139.8 million remaining under its current share repurchase program.
Guess? Inc. announced a regular quarterly cash dividend of $0.30 per share, payable on December 27, 2024.
The filing also details the impact of macroeconomic conditions, including inflation and geopolitical tensions, on the company's business operations.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Guess? Inc. quarterly 10-Q report dated December 6, 2024. To report an error, please email earnings@qz.com.