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.
- 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.