=Guess? (GES) reported earnings on Wed 23 August 2017 (a/h)

• 8/23:  #2, 6, 22, 61, 95, 97  vol. 6.6 M

Guess? beats by $0.09, beats on revs; guides Q3 EPS below consensus, revs above consensus; guides FY18 EPS above consensus, revs above consensus

• Reports Q2 (Jul) earnings of $0.19 per share, $0.09 better than the Capital IQ Consensus of $0.10; revenues rose 5.3% year/year to $573.69 mln vs the $559.82 mln Capital IQ Consensus.
  • Americas Retail revenues decreased 11.2% in U.S. dollars and 10.8% in constant currency. Retail comp sales including e-commerce decreased 10% in U.S. dollars and constant currency.
  • Europe revenues increased 20.1% in U.S. dollars and 18.8% in constant currency. Retail comp sales including e-commerce increased 5% in U.S. dollars and constant currency.
  • Asia revenues increased 17.5% in U.S. dollars and 17.1% in constant currency. Retail comp sales including e-commerce increased 7% in U.S. dollars and 6% in constant currency.
  • Americas Wholesale revenues increased 6.6% in U.S. dollars and 6.8% in constant currency.
    Licensing revenues decreased 0.2% in U.S. dollars and constant currency.
• Co issues mixed guidance for Q3, sees EPS of $0.08-0.11 vs. $0.12 Capital IQ Consensus Estimate; sees Q3 revs of +4.0-6.0% to $558-568 mln, excluding non-recurring items, vs. $553.78 mln Capital IQ Consensus Estimate.
• Co issues upside guidance for FY18, sees EPS of $0.52-0.60, excluding non-recurring items, vs. $0.40 Capital IQ Consensus Estimate; sees FY18 revs of +6-7.5% to ~$2.3-$2.4 bln vs. $2.28 bln Capital IQ Consensus Estimate.
• Victor Herrero, Chief Executive Officer, commented, "We are pleased to report that our adjusted second quarter results finished above the high-end of our expectations for operating margin and earnings per share. Overall, the Company revenues increased 5%, operating margin expanded 120 basis points and operating profit grew 49% compared to last year's second quarter. We continue to see the results of our efforts in Europe and Asia, where our revenues were up 20% and 17%, respectively, mainly driven by new store openings, wholesale growth and positive comp sales. We are also encouraged by the trends in operating margins for these two regions, as they expanded in the quarter relative to last year. In the Americas Retail, as our performance and the business environment remains soft, we continue to focus on shrinking our footprint and profitability improvements."