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Guess?, Inc. Releases 10-Q Report

Guess?, Inc. has recently released its 10-Q report, providing a detailed look into the company's financial performance and operations. Guess? is a global lifestyle brand that designs, markets, and distributes a wide range of apparel and accessories for men, women, and children. The company operates through five segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing. Its product offerings include jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, activewear, knitwear, and intimate apparel, as well as accessories such as eyewear, watches, handbags, footwear, fragrance, and jewelry, marketed under various brand names including GUESS, GUESS?, GUESS U.S.A., and others.

In ITEM 2 of the 10-Q report, Guess? discusses the Management’s Discussion and Analysis of Financial Condition and Results of Operations. The report highlights the company's focus on managing expenses to protect profitability and mitigate the impact of supply chain disruptions, including the Red Sea crisis. The report also addresses the potential negative financial impact of ongoing macroeconomic conditions, such as inflation, higher interest rates, and foreign exchange rate fluctuations, as well as the impact of the wars in Ukraine and Gaza on the company's business.

Guess? further provides insights into its business segments, which are grouped into five reportable segments for management and internal financial reporting purposes: Europe, Americas Retail, Americas Wholesale, Asia, and Licensing. The company evaluates segment performance based on revenues and earnings from operations, and it has integrated the recently acquired rag & bone brand into its existing segments for financial reporting purposes.

The 10-Q report also delves into the company's revenue sources, which primarily come from the sale of apparel and accessories through its global network of directly-operated and licensed retail stores, wholesale customers, distributors, and online sites. Additionally, Guess? derives royalty revenue from worldwide licensing activities.

Furthermore, the report addresses the impact of foreign currency volatility on the company's international operations, highlighting the potential effects of currency fluctuations on revenues and operating results, particularly in regions such as Canada, Europe, and Mexico.

Guess? also acknowledges the impact of inflation on its overall cost structure, including transportation, employee compensation, and raw materials costs. The report outlines the company's efforts to mitigate the impact of inflation through supply chain optimization and efficient workforce management.

Lastly, the 10-Q report touches on the Russia-Ukraine war and its potential impact on Guess?'s operations, although the discussion appears to be incomplete in the provided text. As a result of these announcements, the company's shares have moved -1.2% on the market, and are now trading at a price of $23.13. Check out the company's full 10-Q submission here.

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