
Financial Data and Key Metrics Changes - In Q4, revenues increased by 5% to 3 billion, and by 10% in constant currency [21] - Adjusted earnings per share (EPS) for Q4 was 2.01 in the previous year [66] Business Line Data and Key Metrics Changes - The Rag & Bone acquisition contributed 9 points to the 14% growth, while the core guest business contributed 5 points [12] - The licensing business grew by 18% in Q4, driven by strong performance in footwear, fragrances, handbags, and eyewear [15][61] - The Americas retail business saw a 14% constant currency comp decline, while the European retail business had a 5% constant currency comp increase [15][56] Market Data and Key Metrics Changes - In Europe, revenues grew by 2% to 70 million, with a constant currency decline of 4% [60] - The U.S. and Canadian stores experienced a 14% comp decline, while e-commerce in the region delivered an 8% increase in constant currency [55][56] Company Strategy and Development Direction - The company aims to strengthen brand awareness and customer engagement, improve retail store and e-commerce productivity, and optimize its business model for better profitability [22][51] - Plans include opening new stores for Rag & Bone and Guess Jeans, with a focus on expanding in Europe and Asia [92][128] - The company is exploring the integration of its infrastructures across different regions to improve cost structure and profitability [35][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges such as inflationary pressures, the Red Sea crisis, and traffic declines in retail stores [10][70] - Despite these challenges, the company expects revenue growth in fiscal 2026 between 3.9% and 6.2%, with adjusted operating margins between 4.5% and 5.4% [47][79] - The company plans to address consumer price sensitivity by expanding entry price point offerings [32][105] Other Important Information - The company ended the quarter with $563 million in inventory, a 21% increase, primarily due to the Rag & Bone acquisition [66] - A new Chief Financial Officer, Alberto Toni, will join the company in June, bringing extensive experience [24] - The board approved a quarterly cash dividend of 30 cents per share [70] Q&A Session Summary Question: What are the drivers for Rag & Bone's growth? - Management expressed excitement about the Rag & Bone acquisition, highlighting strong e-commerce performance and plans for new store openings in Europe and North America [90][92] Question: What is the strategy for the Americas business? - Management discussed plans to improve retail productivity through exclusive product collections and a speed-to-market model to capitalize on current trends [100][102] Question: What is the opportunity for Guess Jeans? - Management noted strong initial performance in Europe and plans for expansion in the U.S. and Japan, with a focus on sustainability and appealing to younger customers [120][128]