As of August 3, 2024, Guess?, Inc. reported a net revenue of $732.6 million for the quarter, marking a 10.2% increase from $664.5 million in the same period last year. This growth was primarily driven by the acquisition of rag & bone, which contributed approximately $64 million, alongside a $27 million increase from higher wholesale shipments. However, the company experienced a net loss of $10.6 million, a significant decline from net earnings of $39 million in the prior year, resulting in a diluted loss per share of $0.28 compared to earnings of $0.59.

For the six months ending August 3, 2024, net revenue reached $1.32 billion, up 7.3% from $1.23 billion in the previous year. Despite this revenue growth, net earnings fell sharply to $7.3 million from $31.3 million, reflecting a 76.7% decrease. The gross profit for the six months was $568 million, an increase of 7.9% year-over-year, but the company faced rising selling, general, and administrative (SG&A) expenses, which surged by 19.4% to $549.8 million.

The acquisition of rag & bone on April 2, 2024, involved the purchase of operating assets and a 50% interest in the brand's intellectual property for approximately $57.1 million. This strategic move is expected to enhance Guess's brand portfolio and leverage its existing infrastructure for growth.

The company is navigating challenging macroeconomic conditions, including inflation, higher interest rates, and fluctuations in foreign exchange rates, which have adversely affected consumer spending. As a result, Guess? is actively managing expenses to protect profitability amid these uncertainties.

In terms of financial position, as of August 3, 2024, Guess? reported total assets of $2.78 billion, up from $2.59 billion at the end of the previous fiscal period. However, total liabilities also increased significantly to $2.24 billion from $1.85 billion, leading to a decrease in total stockholders' equity to $531.6 million from $734.8 million.

The company has also been active in share repurchases, having repurchased approximately 2.6 million shares for $60.8 million during the six months ended August 3, 2024, under its 2024 Share Repurchase Program. Additionally, a special cash dividend of $2.25 per share was declared in March 2024, alongside a regular quarterly dividend of $0.30 per share.

Overall, while Guess? has seen revenue growth, the significant decline in profitability and rising expenses highlight the challenges the company faces in the current economic environment.