NEW YORK —?A sharp drop-off in wholesale revenues drove Guess Inc. into the red for the fourth quarter and fiscal year, but the company’s president held out hope that its growing chain of stores and new staffing on the wholesale side will...
NEW YORK —?A sharp drop-off in wholesale revenues drove Guess Inc. into the red for the fourth quarter and fiscal year, but the company’s president held out hope that its growing chain ofstores and new staffing on the wholesale side will lead to better results in 2003.
“There is no question that the economic environment, particularly at retail, remains uncertain,” Carlos Alberini, who is also chief operating officer, said in a conference call with stock analysts.
For the quarter ended Dec. 31, the firm posted a $4.6 million net loss, which included $8.5 million in pretax restructuring charges, and compared with $1.4 million in earnings a year earlier. Net revenue was off 8.7 percent to $167.4 million. The 11-cent-loss-per-diluted share compared with 3-cent earnings a year earlier.
Sales at the 249-store chain were up 6.8 percent to $130.9 million, thanks to the opening of 22 additional units over the course of the year. Comparable-store sales were off 0.9 percent. Operating income at the retail unit was down 8.2 percent to $10 million.
Wholesale revenue was down by about half to $26.4 million. The wholesale division took a $22.5 million operating loss compared with a $12.2 million operating loss in the same period last year.
Alberini said that the number of retailers to which the wholesale division sells dropped to 900 at the end of the year from 1,500 a year before. Alberini also said he believed the return of Nancy Schactman as president of sales in September would help to stabilize and then grow the wholesale business.
In terms of product, he said the Guess Collection and overall Guess women’s business was down for the year, although he said the young contemporary area’s performance improved in the quarter. He added that under Schactman’s direction, the wholesale division will be sharpening its merchandise presentation.
According to Alberini, Guess will cease offering specific guidance on quarterly earnings, joining a growing group of public companies who have started to cut back on the amount of information they provide investors.
However, he said, the company expects overall sales at its retail operation to be up by low-teen percentages this year, with comps up by low-single-digit percentages. He said he expects wholesale sales to be off by mid-single-digit percentages. Alberini said cost-cutting would remain a key focus over the year ahead.For the year, the firm posted a net loss of $11.3 million or 26 cents a diluted share. That compares with earnings of $6.2 million or 14 cents a share the prior year. Overall, revenue was down 13.9 percent to $583.1 million.
Guess released its results after the close of trading. Its shares closed down 21 cents to $3.50 on the New York Stock Exchange.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews