The US clothing group Guess Inc. closed the 2021/22 financial year with a strong increase in sales and managed to return to the profit zone. In addition to the latest results, the company also announced on Wednesday evening that Chief Financial Officer (CFO) Katie Anderson will be stepping down from her post.
For the fiscal year ended Jan. 29, Guess had sales of $2.59 billion. This corresponded to an increase of 38.1 percent (currency-adjusted +37.0 percent) compared to the previous year, in which the consequences of the Covid 19 pandemic had had a significant impact on business. Compared to the pre-crisis year 2019/20, sales shrank by 3.2 percent (currency-adjusted -4.9 percent).
Cost reductions and the limitation of discount campaigns ensured strong progress in earnings. Operating profit reached $305.0 million, more than double the prior fiscal year. In 2020/21, the company had reported an operating loss of US$ 60.5 million due to the consequences of the pandemic.
The bottom line was net income attributable to shareholders of $171.4 million. In the previous year, Guess posted a corresponding loss of US$81.2 million, compared to a surplus of US$96.0 million in 2019/20.
For the current financial year, the group forecast sales growth of a low single-digit percentage. The outlook takes into account the “significant disruptions” in the Russian business, the company said. The clothing retailer also announced the departure of CFO Katie Anderson. Guess announced that she would take over the position of chief financial officer at another company. Until her successor is permanently settled, Dennis Secor is to temporarily head the finance department as interim CFO from April 1.
Secor had been Guess’ chief financial officer from 2006 to 2012, most recently running his own management consultancy. The experienced financial expert will now stay with Guess until the end of March 2023, the group said. He will “support the company while the search for a permanent CFO is being conducted” and will assist in the smooth transition once the position is filled.