Guess', Inc. (NYSE:GES) Q2 2023 Earnings Conference Call August 24, 2022 4:45 PM ET

Company Participants

Fabrice Benarouche - Vice President, Finance and IR

Carlos Alberini - Chief Executive Officer

Dennis Secor - Interim Chief Financial Officer

Conference Call Participants

Dana Telsey - Telsey Advisory Group

Operator

Good day, everyone, and welcome to the Guess Second Quarter Fiscal 2023 Earnings Conference Call.

I would like to turn the call over to Fabrice Benarouche, Vice President of Finance and Investor Relations.

Fabrice Benarouche

Thank you, operator. Good afternoon, everyone, and thank you for joining us today. On the call today with me are Carlos Alberini, Chief Executive Officer; and Dennis Secor, Interim Chief Financial Officer.

During today's call, the company will be making forward-looking statements including comments regarding future plans, strategic initiatives, capital allocation, and short and long-term outlook, including potential impact from the Coronavirus pandemic. The company's actual results may differ materially from current expectations based on risk factors included in today's press release and the company's quarterly and annual reports filed with the SEC. Comments will also reference certain non-GAAP or adjusted measures. GAAP reconciliations and description of these measures can be found in today's earnings release.

Now, I will turn it over to Carlos.

Carlos Alberini

Thank you, Fabrice. Good afternoon, everyone, and thank you for joining us today. I am pleased to report our second quarter performance, which exceeded our expectations for revenues, operating earnings, and operating margin in spite of a challenging environment impacting several of our markets.

Our revenues grew over 2% in U.S. dollars and almost 12% in constant currency, demonstrating the continued strong momentum of our brand and our ability to gain share in a difficult market. We delivered an 8.7% adjusted operating margin and $56 million in adjusted earnings from operations.

While our financial performance was solid, I am most impressed with our team's strong ability to navigate through the current macro environment, which continues to present meaningful headwinds that impact our revenues, margins and expenses. Our team continues to focus on what we can control, managing costs, inventories, and free cash flow carefully and planning the business based on expected customer demand by product category, channel and territory. Paul and I want to take this opportunity to thank all our associates for their outstanding work and great dedication. Your contributions have made all the difference in the last few years and we appreciate your commitment and hard work.