Q2 2025 Guess? Inc Earnings Call Transcript
Key Points
- Guess? Inc (GES) reported a 10% revenue growth in US dollars and 13% in constant currency, reaching $733 million.
- The European wholesale business continues to perform well, with strong demand and higher ordering activity.
- The licensing segment performed well, with revenues increasing by 4% to $29 million, driven by footwear.
- The acquisition of rag & bone is progressing smoothly, contributing solid growth and aligning with expectations.
- Guess? Inc (GES) has expanded its marketing investments, more than doubling them to build stronger brand awareness.
- The Americas retail business did not meet expectations, with traffic continuing to be tough and comp sales declining.
- Sales in the Asia business declined and did not meet expectations, particularly in Korea and China.
- Adjusted SG&A expenses increased by 23% to $281 million, impacting the operating margin.
- The company experienced higher store occupancy expenses from rent increases and slightly higher markdowns.
- Freight costs are expected to be an incremental headwind for the second half of the year due to shipping challenges.
Good day, everyone, and welcome to the Guess? second-quarter fiscal 2025 earnings conference call. I would now like to turn the call over to Farbrice Benarouche, Senior Vice President of Finance and Investor Relations and Chief Accounting Officer. Please go ahead.
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Thank you, operator. Good afternoon, everyone, and thank you for joining us today. On the call today with me are Carlos Alberini, Chief Executive Officer; and Dennis Secor, Interim Chief Financial Officer.
During today's call, the company will be making forward-looking statements, including comments regarding future plans, strategic initiatives, capital allocation, and short- and long-term outlooks. The company's actual results may differ materially from current expectations based on risks factors included in today's press release and the company's quarterly and annual reports filed with the SEC.
Comments will also reference certain non-GAAP or
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