Executive Summary

• Guess reported adjusted 1Q17 EPS of $(0.23) versus the consensus estimate of $(0.19).
• Total revenues were $448.8 million versus consensus of $464.2 million. Sales for the period were below management’s expectations. In the Americas region, the retail business was challenging, particularly in the month of April. Comps in the Americas were down 4.2% (down 3.1% in constant currency) versus consensus of a 1.6% decline.
• Management provided 2Q17 guidance for EPS of $0.04–$0.08 versus consensus of $0.11. Revenues are expected to increase by 0.5%–2.5% in the quarter. For FY17, guidance is for EPS of $0.55–$0.75 versus $0.65–$0.85 previously. Consensus is for EPS of $0.77. Full-year revenues are expected to increase by 5.5%–7.5% in US-dollar terms.