Guess counts on e-commerce to help it hit $3 billion in sales by 2019
March 18, 2016 01:37 PM
Guess Inc. aims to hit $3 billion in sales by 2019, and the apparel manufacturer is counting on its growing e-commerce business to achieve that goal.
Guess, No. 327 in the Internet Retailer 2015 Top 500 Guide, reported fiscal Q4 2016 online sales in the Americas region of $33.0 million, up 9.3% from $30.2 million in the year-ago period. During the quarter ended Jan. 30, e-commerce accounted for 5.0% of sales, compared to 4.3% last year.
For fiscal 2016 online sales in the Americas were $89.5 million, up 14.2% from $78.4 million last year. Online accounted for 4.1% of Guess’s overall sales in fiscal 2016, compared to 3.2% last year.
While online sales are growing, total sales are not. Guess reported Q4 net revenue of $658.3 million, down 5.5% from $696.7 million last year. It was a similar story for all of fiscal 2016, with net revenue of $2.204 billion, down 8.9% from $2.418 billion last year.
Guess CEO Victor Herrero told analysts on the company’s fourth quarter earnings call that despite declining overall revenues, he plans to grow sales by $800 million over the next three years. E-commerce, he said, will play a key role in that plan.
“Geographically, the $800 million growth in revenues will come from the following areas: approximately $300 million from the Americas, with a particular focus on e-commerce, factory stores and G by GUESS,” he told analysts on the call, according to a transcript from Seeking Alpha.
“In Americas Retail, our focus for fiscal 2017 will be driving revenue growth through e-commerce expansion, store openings and comp growth,” chief financial officer Sandeep Reddy added. Neither Reddy nor Herrero gave details about how Guess intends to increase online sales.
For the fourth quarter ended Jan. 30, Guess reported:
- A year-over-year comparable-store sales decline in the U.S. and Canada, including e-commerce, of 1.2%.
- Total sales in the Americas region, which includes the U.S., Canada, and Mexico, of $308.6 million, down 2.6% from $317.0 million last year.
- E-commerce accounted for 10.6% of sales in the Americas region, compared to 9.5% last year.
- Net earnings of $49.3 million, down 11.3% from $55.6 million last year.
For fiscal 2016, Guess reported:
- A year-over-year comparable-store sales decline in the U.S. and Canada, including e-commerce, of 3.6%.
- Total sales in the Americas region of $981.9 million, down 4.9% from $1.033 billion last year.
- E-commerce accounted for 9.1% of overall sales in the Americas, compared to 7.6% last year.
- Net earnings of $84.8 million, down 12.8% from $97.2 million last year.