Guess (GES) Fiscal 1Q18 Results: Beats Expectations; North America Comps Still Weak

Executive Summary

• Guess reported fiscal 1Q18 adjusted EPS of $(0.24), down slightly from $(0.23) in the year-ago quarter but above the $(0.32) consensus estimate.
• Same-store sales for the company’s North America business (including e-commerce) decreased by 15%, beating the consensus estimate of a 16.4% decline for the quarter. Retail comps for the Europe business were up 5%. Comps for the Asia business were up 4%.
• The company expects 2Q18 adjusted EPS of $0.08–$0.11 and expects total revenues to increase by 2%–4%, or by 3.5%–5.5% on a constant currency basis.