Company Quick10K Filing
Guess?
Price18.26 EPS1
Shares73 P/E30
MCap1,337 P/FCF-48
Net Debt189 EBIT72
TEV1,526 TEV/EBIT21
TTM 2019-11-02, in MM, except price, ratios
10-Q 2020-05-02 Filed 2020-06-11
10-K 2020-02-01 Filed 2020-04-01
10-Q 2019-11-02 Filed 2019-12-03
10-Q 2019-08-03 Filed 2019-09-05
10-Q 2019-05-04 Filed 2019-06-11
10-K 2019-02-02 Filed 2019-03-29
10-Q 2018-11-03 Filed 2018-12-07
10-Q 2018-08-04 Filed 2018-09-06
10-Q 2018-05-05 Filed 2018-06-07
10-K 2018-02-03 Filed 2018-03-29
10-Q 2017-10-28 Filed 2017-12-01
10-Q 2017-07-29 Filed 2017-09-01
10-Q 2017-04-29 Filed 2017-06-02
10-K 2017-01-28 Filed 2017-03-27
10-Q 2016-10-29 Filed 2016-12-06
10-Q 2016-07-30 Filed 2016-09-01
10-Q 2016-04-30 Filed 2016-06-02
10-K 2016-01-30 Filed 2016-03-25
10-Q 2015-10-31 Filed 2015-12-02
10-Q 2015-08-01 Filed 2015-09-03
10-Q 2015-05-02 Filed 2015-06-04
10-K 2015-01-31 Filed 2015-03-27
10-Q 2014-11-01 Filed 2014-12-09
10-Q 2014-08-02 Filed 2014-09-05
10-Q 2014-05-03 Filed 2014-06-06
10-K 2014-02-01 Filed 2014-03-28
10-Q 2013-08-03 Filed 2013-09-09
10-Q 2013-05-04 Filed 2013-06-11
10-K 2013-02-02 Filed 2013-04-01
10-Q 2012-10-27 Filed 2012-12-05
10-Q 2012-07-28 Filed 2012-09-05
10-Q 2012-04-28 Filed 2012-06-05
10-K 2012-01-28 Filed 2012-03-23
10-Q 2011-10-29 Filed 2011-12-07
10-Q 2011-07-30 Filed 2011-09-07
10-Q 2011-04-30 Filed 2011-06-07
10-K 2011-01-29 Filed 2011-03-28
10-Q 2010-10-30 Filed 2010-12-07
10-Q 2010-07-31 Filed 2010-09-07
10-Q 2010-05-01 Filed 2010-06-10
10-K 2010-01-30 Filed 2010-03-31
8-K 2020-07-30 Officers, Exhibits
8-K 2020-06-12
8-K 2020-06-10
8-K 2020-04-21
8-K 2020-03-31
8-K 2020-03-27
8-K 2020-03-18
8-K 2020-03-18
8-K 2019-12-03
8-K 2019-11-26
8-K 2019-11-04
8-K 2019-08-28
8-K 2019-06-13
8-K 2019-06-06
8-K 2019-04-30
8-K 2019-04-23
8-K 2019-04-22
8-K 2019-03-20
8-K 2019-02-20
8-K 2019-01-25
8-K 2018-11-28
8-K 2018-10-29
8-K 2018-08-29
8-K 2018-06-19
8-K 2018-06-11
8-K 2018-05-30
8-K 2018-03-21
8-K 2018-03-12
8-K 2018-03-09
8-K 2018-02-20
8-K 2018-02-09
8-K 2018-01-31

GES 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II. Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits.
EX-10.1 a10q-q1fy21ex101.htm
EX-10.2 a10q-q1fy21ex102.htm
EX-31.1 a10q-q1fy21ex311.htm
EX-31.2 a10q-q1fy21ex312.htm
EX-32.1 a10q-q1fy21ex321.htm
EX-32.2 a10q-q1fy21ex322.htm

Guess? Earnings 2020-05-02

Balance SheetIncome StatementCash Flow
2.52.01.51.00.50.02012201420172020
Assets, Equity
0.90.70.50.30.1-0.12012201420172020
Rev, G Profit, Net Income
0.20.10.0-0.0-0.1-0.22012201420172020
Ops, Inv, Fin

Document
false--01-30Q120210000912463GUESS INCP3Y900000130000012000000.010.0115000000015000000014286794714286103565848510676442480.0387879P10YP1Y1230000011200000P364DP364DP364D4990001470000.010.01100000001000000000001300000P3YP2YP3YP3Y2000000199000007701943775216787 0000912463 2020-02-02 2020-05-02 0000912463 2020-06-08 0000912463 2020-05-02 0000912463 2020-02-01 0000912463 ges:DebtAndFinanceLeaseLiabilitiesExcludingConvertibleDebtMember 2020-05-02 0000912463 ges:DebtAndFinanceLeaseLiabilitiesExcludingConvertibleDebtMember 2020-02-01 0000912463 2019-02-03 2019-05-04 0000912463 us-gaap:ProductMember 2020-02-02 2020-05-02 0000912463 us-gaap:RoyaltyMember 2020-02-02 2020-05-02 0000912463 us-gaap:RoyaltyMember 2019-02-03 2019-05-04 0000912463 us-gaap:ProductMember 2019-02-03 2019-05-04 0000912463 2019-02-02 0000912463 2019-05-04 0000912463 us-gaap:NoncontrollingInterestMember 2020-05-02 0000912463 us-gaap:RetainedEarningsMember 2020-02-01 0000912463 ges:CommonStockOutstandingMember 2020-02-02 2020-05-02 0000912463 us-gaap:AdditionalPaidInCapitalMember 2020-02-01 0000912463 us-gaap:AdditionalPaidInCapitalMember 2020-02-02 2020-05-02 0000912463 us-gaap:AdditionalPaidInCapitalMember 2020-05-02 0000912463 ges:CommonStockOutstandingMember 2020-02-01 0000912463 us-gaap:TreasuryStockMember 2020-05-02 0000912463 us-gaap:TreasuryStockMember 2020-02-02 2020-05-02 0000912463 us-gaap:NoncontrollingInterestMember 2020-02-02 2020-05-02 0000912463 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-05-02 0000912463 us-gaap:RetainedEarningsMember 2020-02-02 2020-05-02 0000912463 us-gaap:TreasuryStockMember 2020-02-01 0000912463 ges:CommonStockOutstandingMember 2020-05-02 0000912463 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-02-02 2020-05-02 0000912463 us-gaap:RetainedEarningsMember 2020-05-02 0000912463 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-02-01 0000912463 us-gaap:NoncontrollingInterestMember 2020-02-01 0000912463 us-gaap:TreasuryStockMember 2019-02-03 2019-05-04 0000912463 us-gaap:RetainedEarningsMember 2019-02-02 0000912463 us-gaap:NoncontrollingInterestMember 2019-02-02 0000912463 us-gaap:NoncontrollingInterestMember 2019-05-04 0000912463 us-gaap:NoncontrollingInterestMember 2019-02-03 2019-05-04 0000912463 ges:CommonStockOutstandingMember 2019-05-04 0000912463 ges:CommonStockOutstandingMember 2019-02-03 2019-05-04 0000912463 us-gaap:AdditionalPaidInCapitalMember 2019-02-03 2019-05-04 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:RetainedEarningsMember 2019-02-03 0000912463 us-gaap:RetainedEarningsMember 2019-02-03 2019-05-04 0000912463 us-gaap:TreasuryStockMember 2019-02-02 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:AdditionalPaidInCapitalMember 2019-02-03 0000912463 ges:CommonStockOutstandingMember 2019-02-02 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember 2019-02-03 0000912463 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-03 2019-05-04 0000912463 us-gaap:AdditionalPaidInCapitalMember 2019-05-04 0000912463 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-02 0000912463 us-gaap:TreasuryStockMember 2019-05-04 0000912463 us-gaap:RetainedEarningsMember 2019-05-04 0000912463 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-05-04 0000912463 us-gaap:AdditionalPaidInCapitalMember 2019-02-02 0000912463 ges:PrivatelyHeldApparelCompanyMember 2018-02-04 2019-02-02 0000912463 us-gaap:RoyaltyMember us-gaap:OtherNoncurrentLiabilitiesMember 2020-02-01 0000912463 us-gaap:RoyaltyMember us-gaap:OtherNoncurrentLiabilitiesMember 2020-05-02 0000912463 ges:PrivatelyHeldApparelCompanyMember us-gaap:OtherNonoperatingIncomeExpenseMember 2020-02-02 2020-05-02 0000912463 srt:EuropeMember 2020-05-02 0000912463 us-gaap:RoyaltyMember srt:MaximumMember 2020-02-02 2020-05-02 0000912463 us-gaap:RoyaltyMember us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2020-02-01 0000912463 ges:PrivatelyHeldApparelCompanyMember 2020-05-02 0000912463 us-gaap:RoyaltyMember us-gaap:AccountsPayableAndAccruedLiabilitiesMember 2020-05-02 0000912463 2019-02-03 2020-02-01 0000912463 2018-02-04 2019-02-02 0000912463 srt:ScenarioForecastMember 2020-02-02 2021-01-30 0000912463 us-gaap:RoyaltyMember srt:MinimumMember 2020-02-02 2020-05-02 0000912463 us-gaap:CostOfSalesMember 2019-02-03 2019-05-04 0000912463 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-02-03 2019-05-04 0000912463 us-gaap:CostOfSalesMember 2020-02-02 2020-05-02 0000912463 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2020-02-02 2020-05-02 0000912463 us-gaap:InterestExpenseMember 2019-02-03 2019-05-04 0000912463 us-gaap:InterestExpenseMember 2020-02-02 2020-05-02 0000912463 srt:MaximumMember ges:RetailStoreMember 2020-02-02 2020-05-02 0000912463 srt:MinimumMember ges:RetailStoreMember 2020-02-02 2020-05-02 0000912463 ges:NorthAmericaandEuropeMember 2020-02-02 2020-05-02 0000912463 srt:WeightedAverageMember ges:RetailConcessionMember 2020-02-02 2020-05-02 0000912463 ges:PotentiallyDilutiveSharesMember 2019-02-03 2019-05-04 0000912463 us-gaap:PerformanceSharesMember 2020-02-02 2020-05-02 0000912463 ges:PotentiallyDilutiveSharesMember 2020-02-02 2020-05-02 0000912463 us-gaap:PerformanceSharesMember 2019-02-03 2019-05-04 0000912463 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-02-02 2020-05-02 0000912463 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-02-02 2020-05-02 0000912463 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-02-01 0000912463 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-05-02 0000912463 us-gaap:AccumulatedTranslationAdjustmentMember 2020-02-02 2020-05-02 0000912463 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-02-01 0000912463 us-gaap:AccumulatedTranslationAdjustmentMember 2020-05-02 0000912463 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-05-02 0000912463 us-gaap:AccumulatedTranslationAdjustmentMember 2020-02-01 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-03 0000912463 us-gaap:AccumulatedTranslationAdjustmentMember 2019-02-03 2019-05-04 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-02-03 0000912463 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-02-03 2019-05-04 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-02-03 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:AccumulatedTranslationAdjustmentMember 2019-02-03 0000912463 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-02-03 2019-05-04 0000912463 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-02-02 0000912463 us-gaap:AccumulatedTranslationAdjustmentMember 2019-02-02 0000912463 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-05-04 0000912463 us-gaap:AccumulatedTranslationAdjustmentMember 2019-05-04 0000912463 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-05-04 0000912463 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-02-02 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2019-02-03 2019-05-04 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2020-02-02 2020-05-02 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-02-03 2019-05-04 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2020-02-02 2020-05-02 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2019-02-03 2019-05-04 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-02-02 2020-05-02 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2020-02-02 2020-05-02 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember 2019-02-03 2019-05-04 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember 2019-02-03 2019-05-04 0000912463 us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember 2020-02-02 2020-05-02 0000912463 ges:AcceleratedShareRepurchaseContractMember 2019-04-26 2019-04-26 0000912463 ges:AcceleratedShareRepurchaseContractMember 2019-08-04 2019-11-02 0000912463 2019-05-05 2020-02-01 0000912463 ges:AcceleratedShareRepurchaseContractMember 2019-04-26 0000912463 ges:AcceleratedShareRepurchaseContractMember 2019-04-26 2019-11-02 0000912463 ges:ShareRepurchaseProgramMember 2020-05-02 0000912463 ges:ShareRepurchaseProgramMember 2012-06-26 0000912463 2018-11-04 2019-02-02 0000912463 ges:ShareRepurchaseProgramMember 2020-02-02 2020-05-02 0000912463 ges:ShareRepurchaseProgramMember 2019-02-03 2019-05-04 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:AccountingStandardsUpdate201712Member us-gaap:RetainedEarningsMember 2019-02-03 0000912463 ges:RoyaltyReceivableMember 2020-05-02 0000912463 us-gaap:TradeAccountsReceivableMember 2020-05-02 0000912463 us-gaap:TradeAccountsReceivableMember 2020-02-01 0000912463 ges:OtherReceivablesMember 2020-02-01 0000912463 ges:RoyaltyReceivableMember 2020-02-01 0000912463 ges:OtherReceivablesMember 2020-05-02 0000912463 us-gaap:OtherNoncurrentLiabilitiesMember 2020-05-02 0000912463 us-gaap:OtherNoncurrentLiabilitiesMember 2020-02-01 0000912463 us-gaap:ProductMember country:ES 2019-02-03 2019-05-04 0000912463 us-gaap:ProductMember country:CA 2020-02-02 2020-05-02 0000912463 us-gaap:ProductMember country:IT 2020-02-02 2020-05-02 0000912463 us-gaap:ProductMember country:US 2019-02-03 2019-05-04 0000912463 us-gaap:ProductMember country:KR 2020-02-02 2020-05-02 0000912463 us-gaap:ProductMember country:CA 2019-02-03 2019-05-04 0000912463 us-gaap:ProductMember country:US 2020-02-02 2020-05-02 0000912463 us-gaap:ProductMember ges:OtherForeignCountriesMember 2019-02-03 2019-05-04 0000912463 us-gaap:ProductMember country:IT 2019-02-03 2019-05-04 0000912463 us-gaap:ProductMember ges:OtherForeignCountriesMember 2020-02-02 2020-05-02 0000912463 us-gaap:ProductMember country:ES 2020-02-02 2020-05-02 0000912463 us-gaap:ProductMember country:KR 2019-02-03 2019-05-04 0000912463 us-gaap:OperatingSegmentsMember ges:EuropeSegmentMember 2019-02-03 2019-05-04 0000912463 us-gaap:OperatingSegmentsMember ges:AmerRetailMember 2020-02-02 2020-05-02 0000912463 ges:AmericasWholesaleMember 2019-02-03 2019-05-04 0000912463 us-gaap:OperatingSegmentsMember ges:LicensingMember 2020-02-02 2020-05-02 0000912463 ges:AsiaSegment1Member 2019-02-03 2019-05-04 0000912463 us-gaap:OperatingSegmentsMember ges:AsiaSegment1Member 2020-02-02 2020-05-02 0000912463 us-gaap:OperatingSegmentsMember ges:AmericasWholesaleMember 2020-02-02 2020-05-02 0000912463 us-gaap:OperatingSegmentsMember ges:LicensingMember 2019-02-03 2019-05-04 0000912463 us-gaap:MaterialReconcilingItemsMember 2020-02-02 2020-05-02 0000912463 ges:LicensingMember 2020-02-02 2020-05-02 0000912463 us-gaap:OperatingSegmentsMember ges:EuropeSegmentMember 2020-02-02 2020-05-02 0000912463 us-gaap:MaterialReconcilingItemsMember 2019-02-03 2019-05-04 0000912463 us-gaap:OperatingSegmentsMember ges:AmerRetailMember 2019-02-03 2019-05-04 0000912463 us-gaap:OperatingSegmentsMember 2020-02-02 2020-05-02 0000912463 ges:EuropeSegmentMember 2019-02-03 2019-05-04 0000912463 us-gaap:OperatingSegmentsMember ges:AmericasWholesaleMember 2019-02-03 2019-05-04 0000912463 ges:AsiaSegment1Member 2020-02-02 2020-05-02 0000912463 ges:AmerRetailMember 2019-02-03 2019-05-04 0000912463 ges:AmerRetailMember 2020-02-02 2020-05-02 0000912463 us-gaap:CorporateNonSegmentMember 2020-02-02 2020-05-02 0000912463 us-gaap:OperatingSegmentsMember ges:AsiaSegment1Member 2019-02-03 2019-05-04 0000912463 ges:EuropeSegmentMember 2020-02-02 2020-05-02 0000912463 us-gaap:OperatingSegmentsMember 2019-02-03 2019-05-04 0000912463 ges:AmericasWholesaleMember 2020-02-02 2020-05-02 0000912463 us-gaap:CorporateNonSegmentMember 2019-02-03 2019-05-04 0000912463 ges:LicensingMember 2019-02-03 2019-05-04 0000912463 srt:EuropeMember us-gaap:ForeignLineOfCreditMember 2020-05-02 0000912463 country:US us-gaap:ConventionalLoanMember us-gaap:BuildingMember 2020-02-01 0000912463 us-gaap:DomesticLineOfCreditMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-02-02 2020-05-02 0000912463 country:CA us-gaap:ForeignLineOfCreditMember us-gaap:LineOfCreditMember ges:CanadianBARateMember 2020-02-02 2020-05-02 0000912463 country:NL us-gaap:CapitalLeaseObligationsMember us-gaap:EquipmentMember 2020-02-01 0000912463 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2020-05-02 0000912463 country:US us-gaap:ConventionalLoanMember us-gaap:BuildingMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-02-02 2020-05-02 0000912463 us-gaap:CapitalLeaseObligationsMember us-gaap:ComputerEquipmentMember 2020-02-01 0000912463 country:US us-gaap:InterestRateSwapMember us-gaap:ConventionalLoanMember us-gaap:BuildingMember 2020-02-01 0000912463 srt:MaximumMember country:CA us-gaap:ForeignLineOfCreditMember us-gaap:LineOfCreditMember us-gaap:PrimeRateMember 2020-02-02 2020-05-02 0000912463 srt:MaximumMember us-gaap:DomesticLineOfCreditMember us-gaap:LineOfCreditMember us-gaap:BaseRateMember 2020-02-02 2020-05-02 0000912463 country:NL us-gaap:CapitalLeaseObligationsMember us-gaap:EquipmentMember 2020-05-02 0000912463 country:CN us-gaap:ForeignLineOfCreditMember 2020-05-02 0000912463 country:US us-gaap:ConventionalLoanMember us-gaap:BuildingMember 2016-02-16 2016-02-16 0000912463 us-gaap:LineOfCreditMember 2020-05-02 0000912463 srt:MinimumMember country:CA us-gaap:ForeignLineOfCreditMember us-gaap:LineOfCreditMember ges:CanadianBARateMember 2020-02-02 2020-05-02 0000912463 country:CA us-gaap:ForeignLineOfCreditMember us-gaap:LineOfCreditMember 2020-05-02 0000912463 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2020-05-02 0000912463 country:CN us-gaap:ForeignLineOfCreditMember 2020-02-01 0000912463 us-gaap:DomesticLineOfCreditMember us-gaap:LineOfCreditMember ges:FederalFundsRateMember 2020-02-02 2020-05-02 0000912463 srt:MaximumMember srt:EuropeMember us-gaap:UnsecuredDebtMember 2020-05-02 0000912463 srt:MinimumMember us-gaap:DomesticLineOfCreditMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-02-02 2020-05-02 0000912463 country:US us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ConventionalLoanMember us-gaap:BuildingMember 2016-02-16 0000912463 srt:MaximumMember srt:EuropeMember us-gaap:ForeignLineOfCreditMember 2020-05-02 0000912463 srt:MinimumMember us-gaap:DomesticLineOfCreditMember us-gaap:LineOfCreditMember us-gaap:BaseRateMember 2020-02-02 2020-05-02 0000912463 country:US us-gaap:InterestRateSwapMember us-gaap:ConventionalLoanMember us-gaap:BuildingMember 2020-05-02 0000912463 country:CA us-gaap:ForeignLineOfCreditMember us-gaap:LineOfCreditMember us-gaap:PrimeRateMember 2020-02-02 2020-05-02 0000912463 us-gaap:StandbyLettersOfCreditMember us-gaap:LineOfCreditMember 2020-05-02 0000912463 country:US us-gaap:ConventionalLoanMember us-gaap:BuildingMember 2020-05-02 0000912463 srt:EuropeMember us-gaap:UnsecuredDebtMember 2020-05-02 0000912463 srt:MaximumMember country:CA us-gaap:ForeignLineOfCreditMember us-gaap:LineOfCreditMember ges:CanadianBARateMember 2020-02-02 2020-05-02 0000912463 srt:MaximumMember us-gaap:DomesticLineOfCreditMember us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-02-02 2020-05-02 0000912463 us-gaap:CapitalLeaseObligationsMember us-gaap:ComputerEquipmentMember 2020-05-02 0000912463 ges:RevolvingCreditFacilityAccordionFeatureMember us-gaap:LineOfCreditMember 2020-05-02 0000912463 srt:MaximumMember srt:EuropeMember us-gaap:UnsecuredDebtMember 2020-02-02 2020-05-02 0000912463 srt:MinimumMember srt:EuropeMember us-gaap:UnsecuredDebtMember 2020-05-02 0000912463 srt:MinimumMember country:CA us-gaap:ForeignLineOfCreditMember us-gaap:LineOfCreditMember us-gaap:PrimeRateMember 2020-02-02 2020-05-02 0000912463 srt:MinimumMember srt:EuropeMember us-gaap:ForeignLineOfCreditMember 2020-05-02 0000912463 country:US us-gaap:ConventionalLoanMember us-gaap:BuildingMember 2016-02-16 0000912463 us-gaap:LineOfCreditMember 2020-02-02 2020-05-02 0000912463 srt:MinimumMember srt:EuropeMember us-gaap:UnsecuredDebtMember 2020-02-02 2020-05-02 0000912463 ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:SeniorNotesMember 2020-02-01 0000912463 ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:SeniorNotesMember 2020-05-02 0000912463 ges:InitialPurchasersMember ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:SeniorNotesMember 2019-04-30 0000912463 ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2020-05-02 0000912463 2019-04-30 0000912463 ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:SeniorNotesMember 2019-04-30 0000912463 2019-04-01 2019-04-30 0000912463 ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:FairValueInputsLevel2Member us-gaap:SeniorNotesMember 2020-02-01 0000912463 ges:ThirdPartyOfferersMember ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:SeniorNotesMember 2019-04-30 0000912463 ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:SeniorNotesMember 2019-04-01 2019-04-30 0000912463 ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:SeniorNotesMember 2020-02-02 2020-05-02 0000912463 ges:A2.00ConvertibleSeniorNotesDue2024Member us-gaap:SeniorNotesMember 2019-02-03 2019-05-04 0000912463 us-gaap:PerformanceSharesMember 2020-02-01 0000912463 us-gaap:PerformanceSharesMember 2020-02-02 2020-05-02 0000912463 us-gaap:PerformanceSharesMember 2020-05-02 0000912463 srt:ChiefExecutiveOfficerMember us-gaap:RestrictedStockUnitsRSUMember 2019-02-20 2019-02-20 0000912463 2019-06-10 2019-06-10 0000912463 srt:ChiefExecutiveOfficerMember 2019-02-20 2019-02-20 0000912463 srt:MinimumMember ges:MarketBasedSharesMember 2020-02-02 2020-05-02 0000912463 srt:MaximumMember ges:TargetPerformanceAwardsMember 2020-02-02 2020-05-02 0000912463 srt:MaximumMember ges:MarketBasedSharesMember 2020-02-02 2020-05-02 0000912463 2019-03-29 2019-03-29 0000912463 ges:MarketBasedUnitsMember 2020-02-02 2020-05-02 0000912463 srt:ChiefExecutiveOfficerMember us-gaap:PerformanceSharesMember 2019-02-20 2019-02-20 0000912463 ges:NonvestedStockAwardsOrUnitsMember 2020-05-02 0000912463 us-gaap:RestrictedStockUnitsRSUMember 2020-04-27 2020-04-27 0000912463 ges:NonvestedStockAwardsOrUnitsMember 2020-04-13 2020-04-13 0000912463 srt:MinimumMember ges:TargetPerformanceAwardsMember 2020-02-02 2020-05-02 0000912463 ges:NonvestedStockAwardsOrUnitsMember 2019-03-29 2019-03-29 0000912463 us-gaap:PerformanceSharesMember 2019-06-20 2019-06-20 0000912463 ges:MarketBasedUnitsMember 2020-05-02 0000912463 ges:MarketBasedUnitsMember 2020-02-01 0000912463 ges:EmployeeAndNonEmployeeStockOptionMember 2020-02-02 2020-05-02 0000912463 ges:NonvestedStockAwardsOrUnitsMember 2020-02-02 2020-05-02 0000912463 ges:EmployeeStockPurchasePlanMember 2020-02-02 2020-05-02 0000912463 ges:NonvestedStockAwardsOrUnitsMember 2019-02-03 2019-05-04 0000912463 ges:EmployeeStockPurchasePlanMember 2019-02-03 2019-05-04 0000912463 ges:EmployeeAndNonEmployeeStockOptionMember 2019-02-03 2019-05-04 0000912463 ges:MarketBasedSharesMember 2020-02-02 2020-05-02 0000912463 srt:MinimumMember ges:NonvestedPerformanceSharesMember ges:VestingTranchesAfterInitialVestingPeriodMember 2020-02-02 2020-05-02 0000912463 srt:MaximumMember ges:NonvestedPerformanceSharesMember ges:VestingTranchesAfterInitialVestingPeriodMember 2020-02-02 2020-05-02 0000912463 ges:TargetPerformanceAwardsMember 2020-02-02 2020-05-02 0000912463 ges:MarcianoTrustsMember 2020-05-02 0000912463 ges:AircraftCharterPaymentMember ges:AircraftEntitiesMember 2020-02-02 2020-05-02 0000912463 ges:AircraftCharterPaymentMember ges:AircraftEntitiesMember 2019-02-03 2019-05-04 0000912463 ges:RelatedPartyLeasesMember ges:MarcianoTrustsMember 2020-02-02 2020-05-02 0000912463 ges:RelatedPartyLeasesMember ges:MarcianoTrustsMember 2019-02-03 2019-05-04 0000912463 country:IT us-gaap:PendingLitigationMember ges:CustomsTaxAuditandAppealsMember ges:EuropeSegmentMember 2020-02-02 2020-05-02 0000912463 country:IT us-gaap:PendingLitigationMember ges:CustomsTaxAuditandAppealsMember ges:EuropeSegmentMember 2020-05-02 0000912463 us-gaap:PrivateEquityFundsMember 2020-05-02 0000912463 ges:ItalianSupremeCourtMember country:IT us-gaap:PendingLitigationMember ges:CustomsTaxAuditandAppealsMember ges:EuropeSegmentMember 2020-02-02 2020-05-02 0000912463 ges:GuessBrazilMember 2020-02-01 0000912463 ges:ItalianSupremeCourtMember country:IT us-gaap:SettledLitigationMember ges:CustomsTaxAuditandAppealsMember ges:EuropeSegmentMember 2020-02-02 2020-05-02 0000912463 ges:GuessCISMember 2020-05-02 0000912463 ges:GuessBrazilMember 2020-05-02 0000912463 ges:GuessCISMember 2020-05-02 0000912463 ges:GuessBrazilMember 2020-05-02 0000912463 ges:GuessCISMember 2020-02-01 0000912463 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-05-02 0000912463 us-gaap:OtherNoncurrentAssetsMember us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2020-02-01 0000912463 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2019-02-03 2019-05-04 0000912463 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-05-02 0000912463 us-gaap:OtherNoncurrentAssetsMember us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2020-05-02 0000912463 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-02-01 0000912463 ges:AccruedExpensesandOtherLongTermLiabilitiesMember us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2020-02-01 0000912463 ges:AccruedExpensesandOtherLongTermLiabilitiesMember us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2020-05-02 0000912463 us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2019-02-03 2019-05-04 0000912463 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2020-02-02 2020-05-02 0000912463 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-02-01 0000912463 us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2020-02-02 2020-05-02 0000912463 us-gaap:PensionPlansDefinedBenefitMember 2020-02-02 2020-05-02 0000912463 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2020-02-02 2020-05-02 0000912463 us-gaap:PensionPlansDefinedBenefitMember 2019-02-03 2019-05-04 0000912463 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-02-03 2019-05-04 0000912463 ges:NorthAmericaandEuropeMember srt:RetailSiteMember 2019-02-03 2019-05-04 0000912463 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:OtherNonoperatingIncomeExpenseMember us-gaap:PrivateEquityFundsMember 2019-02-03 2019-05-04 0000912463 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PrivateEquityFundsMember 2020-05-02 0000912463 ges:NorthAmericaEuropeandAsiaMember srt:RetailSiteMember 2020-02-02 2020-05-02 0000912463 us-gaap:OtherAssetsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PrivateEquityFundsMember 2020-05-02 0000912463 us-gaap:FairValueMeasurementsRecurringMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2020-05-02 0000912463 us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-02-01 0000912463 us-gaap:FairValueMeasurementsRecurringMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2020-02-01 0000912463 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2020-02-01 0000912463 us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2020-05-02 0000912463 us-gaap:FairValueMeasurementsRecurringMember us-gaap:ForeignExchangeForwardMember 2020-05-02 0000912463 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2020-02-01 0000912463 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember us-gaap:InterestRateSwapMember 2020-05-02 0000912463 us-gaap:OtherAssetsMember us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PrivateEquityFundsMember 2020-02-01 0000912463 ges:OtherCurrentAssetsandOtherLongTermAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-02-01 0000912463 ges:OtherCurrentAssetsandOtherLongTermAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-02-01 0000912463 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-02-01 0000912463 ges:OtherCurrentAssetsandOtherLongTermAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-05-02 0000912463 ges:OtherCurrentAssetsandOtherLongTermAssetsMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-05-02 0000912463 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-05-02 0000912463 us-gaap:ForeignExchangeForwardMember us-gaap:CostOfSalesMember 2020-02-02 2020-05-02 0000912463 us-gaap:ForeignExchangeForwardMember us-gaap:CostOfSalesMember 2019-02-03 2019-05-04 0000912463 us-gaap:InterestRateSwapMember us-gaap:InterestExpenseMember 2020-02-02 2020-05-02 0000912463 us-gaap:InterestRateSwapMember us-gaap:InterestExpenseMember 2019-02-03 2019-05-04 0000912463 srt:EuropeMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-02-01 0000912463 srt:EuropeMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-02-02 2020-05-02 0000912463 us-gaap:InterestRateSwapMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-05-02 0000912463 currency:EUR us-gaap:NondesignatedMember 2020-02-02 2020-05-02 0000912463 currency:EUR us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-05-02 0000912463 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-05-02 0000912463 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2016-01-31 2017-01-28 0000912463 srt:EuropeMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-05-02 0000912463 us-gaap:ForeignExchangeForwardMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-05-02 0000912463 srt:EuropeMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2020-02-02 2020-05-02 0000912463 currency:EUR us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2020-02-01 0000912463 us-gaap:ForeignExchangeForwardMember us-gaap:OtherNonoperatingIncomeExpenseMember 2020-02-02 2020-05-02 0000912463 us-gaap:ForeignExchangeForwardMember us-gaap:OtherNonoperatingIncomeExpenseMember 2019-02-03 2019-05-04 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2020-02-02 0000912463 ges:CumulativeEffectPeriodofAdoptionAdjustmentMember us-gaap:AccountingStandardsUpdate201712Member us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-02-03 ges:segment iso4217:USD xbrli:shares xbrli:pure iso4217:USD xbrli:shares iso4217:EUR ges:lease ges:subsidiary

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q 
          QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended May 2, 2020
OR 
      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to           
Commission file number: 1-11893
GUESS?, INC.
(Exact name of registrant as specified in its charter)
Delaware
95-3679695
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
 
 
1444 South Alameda Street
Los Angeles,
California
90021
(Address of principal executive offices and zip code)
(213) 765-3100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading symbol(s)
 
Name of each exchange on which registered
 
 
 
 
 
 
Common Stock, par value $0.01 per share
 
GES
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes x  No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
 
Accelerated filer
 
 
 
 
 
Non-accelerated filer
 
Smaller reporting company
 
 
 
 
 
 
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No x
As of June 8, 2020, the registrant had 67,602,723 shares of Common Stock, $.01 par value per share, outstanding.
 



GUESS?, INC.
FORM 10-Q
TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

i


PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements.
GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data) 
 
May 2, 2020
 
Feb 1, 2020
 
(unaudited)
 
 
ASSETS
 

 
 

Current assets:
 

 
 

Cash and cash equivalents
$
419,415

 
$
284,613

Accounts receivable, net
239,532

 
327,281

Inventories
392,490

 
393,129

Other current assets
58,961

 
59,212

Total current assets
1,110,398

 
1,064,235

Property and equipment, net
244,681

 
288,112

Goodwill
34,490

 
34,777

Deferred tax assets
58,777

 
63,555

Restricted cash
213

 
215

Operating lease right-of-use assets
778,030

 
851,990

Other assets
120,163

 
126,078

 
$
2,346,752

 
$
2,428,962

LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
 

Current liabilities:
 

 
 

Current portion of borrowings and finance lease obligations
$
160,501

 
$
9,490

Accounts payable
214,937

 
232,761

Accrued expenses and other current liabilities
119,819

 
204,096

Current portion of operating lease liabilities
226,967

 
192,066

Total current liabilities
722,224

 
638,413

Convertible senior notes, net
250,176

 
247,363

Long-term debt and finance lease obligations
94,804

 
32,770

Long-term operating lease liabilities
659,947

 
714,079

Other long-term liabilities
128,878

 
130,259

 
1,856,029

 
1,762,884

Redeemable noncontrolling interests
3,934

 
4,731

 
 
 
 
Commitments and contingencies (Note 13)


 


 
 
 
 
Stockholders’ equity:
 

 
 

Preferred stock, $.01 par value. Authorized 10,000,000 shares; no shares issued and outstanding

 

Common stock, $.01 par value. Authorized 150,000,000 shares; issued 142,861,035 and 142,867,947 shares, outstanding 67,644,248 and 65,848,510 shares, as of May 2, 2020 and February 1, 2020, respectively
676

 
658

Paid-in capital
544,319

 
563,004

Retained earnings
973,006

 
1,130,409

Accumulated other comprehensive loss
(153,302
)
 
(139,910
)
Treasury stock, 75,216,787 and 77,019,437 shares as of May 2, 2020 and February 1, 2020, respectively
(893,045
)
 
(914,447
)
Guess?, Inc. stockholders’ equity
471,654

 
639,714

Nonredeemable noncontrolling interests
15,135

 
21,633

Total stockholders’ equity
486,789

 
661,347

 
$
2,346,752

 
$
2,428,962

 
See accompanying notes to condensed consolidated financial statements.

1


GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF LOSS
(in thousands, except per share data)
(unaudited)
 
Three Months Ended
 
May 2, 2020
 
May 4, 2019
Product sales
$
247,317

 
$
517,873

Net royalties
12,934

 
18,818

Net revenue
260,251

 
536,691

Cost of product sales
226,022

 
354,742

Gross profit
34,229

 
181,949

Selling, general and administrative expenses
143,288

 
204,645

Asset impairment charges
52,972

 
1,775

Net losses on lease terminations
456

 

Loss from operations
(162,487
)
 
(24,471
)
Other income (expense):
 

 
 

Interest expense
(5,462
)
 
(1,259
)
Interest income
610

 
361

Other income (expense), net
(19,580
)
 
2,071

 
(24,432
)
 
1,173

 
 
 
 
Loss before income tax benefit
(186,919
)
 
(23,298
)
Income tax benefit
(26,381
)
 
(2,717
)
Net loss
(160,538
)
 
(20,581
)
Net earnings (loss) attributable to noncontrolling interests
(2,872
)
 
793

Net loss attributable to Guess?, Inc.
$
(157,666
)
 
$
(21,374
)
 
 
 
 
Net loss per common share attributable to common stockholders (Note 3):
Basic
$
(2.40
)
 
$
(0.27
)
Diluted
$
(2.40
)
 
$
(0.27
)
 
 
 
 
Weighted average common shares outstanding attributable to common stockholders (Note 3):
Basic
65,715

 
79,925

Diluted
65,715

 
79,925


See accompanying notes to condensed consolidated financial statements.


2


GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS
(in thousands)
(unaudited)
 
Three Months Ended
 
May 2, 2020
 
May 4, 2019
Net loss
$
(160,538
)
 
$
(20,581
)
Other comprehensive income (loss) (“OCI”):
 

 
 

Foreign currency translation adjustment
 
 
 
Losses arising during the period
(18,499
)
 
(12,067
)
Derivative financial instruments designated as cash flow hedges
 

 
 

Gains arising during the period
3,536

 
4,436

Less income tax effect
(356
)
 
(572
)
Reclassification to net loss for gains realized
(1,988
)
 
(276
)
Less income tax effect
219

 
95

Defined benefit plans
 

 
 

Foreign currency and other adjustments

 
107

Less income tax effect
(1
)
 
(11
)
Net actuarial loss amortization
96

 
111

Prior service credit amortization
(16
)
 
(10
)
Less income tax effect
(9
)
 
(11
)
Total comprehensive loss
(177,556
)
 
(28,779
)
Less comprehensive income (loss) attributable to noncontrolling interests:
 

 
 

Net earnings (loss)
(2,872
)
 
793

Foreign currency translation adjustment
(3,626
)
 
310

Amounts attributable to noncontrolling interests
(6,498
)
 
1,103

Comprehensive loss attributable to Guess?, Inc.
$
(171,058
)
 
$
(29,882
)

See accompanying notes to condensed consolidated financial statements.


3


GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
 
Three Months Ended
 
May 2, 2020
 
May 4, 2019
Cash flows from operating activities:
 

 
 

Net loss
$
(160,538
)
 
$
(20,581
)
Adjustments to reconcile net loss to net cash used in operating activities:
 

 
 

Depreciation and amortization
17,024

 
18,598

Amortization of debt discount
2,599

 
213

Amortization of debt issuance costs
307

 
41

Share-based compensation expense
5,786

 
4,468

Forward contract gains
(1,102
)
 
(34
)
Net loss on impairment and disposition of property and equipment and long-term assets
53,483

 
2,250

Other items, net
9,951

 
82

Changes in operating assets and liabilities:
 

 
 

Accounts receivable
84,667

 
68,482

Inventories
(7,894
)
 
(13,676
)
Prepaid expenses and other assets
1,059

 
(11,681
)
Operating lease assets and liabilities, net
27,704

 
89

Accounts payable and accrued expenses
(93,294
)
 
(145,077
)
Other long-term liabilities
(1,305
)
 
325

Net cash used in operating activities
(61,553
)
 
(96,501
)
Cash flows from investing activities:
 

 
 

Purchases of property and equipment
(5,973
)
 
(17,865
)
Proceeds from sale of long-term assets
257

 

Net cash settlement of forward contracts

 
162

Other investing activities

 
521

Net cash used in investing activities
(5,716
)
 
(17,182
)
Cash flows from financing activities:
 

 
 

Proceeds from borrowings
245,961

 
78,892

Repayments on borrowings and finance lease obligations
(31,884
)
 
(34,185
)
Proceeds from issuance of convertible senior notes

 
300,000

Proceeds from issuance of warrants

 
28,080

Purchase of convertible note hedges

 
(60,990
)
Convertible debt issuance costs

 
(4,246
)
Purchase of equity forward contracts

 
(68,000
)
Dividends paid
(958
)
 
(18,642
)
Issuance of common stock, net of tax withholdings on vesting of stock awards
(3,036
)
 
(622
)
Purchase of treasury stock

 
(201,564
)
Net cash provided by financing activities
210,083

 
18,723

Effect of exchange rates on cash, cash equivalents and restricted cash
(8,014
)
 
(2,579
)
Net change in cash, cash equivalents and restricted cash
134,800

 
(97,539
)
Cash, cash equivalents and restricted cash at the beginning of the year
284,828

 
210,995

Cash, cash equivalents and restricted cash at the end of the period
$
419,628

 
$
113,456

 
 
 
 
Supplemental cash flow data:
 

 
 

Interest paid
$
3,960

 
$
566

Income taxes paid, net of refunds
$
590

 
$
(232
)
 
 
 
 
Non-cash investing and financing activity:
 
 
 
Assets acquired under finance lease obligations
$
86

 
$
665

 
See accompanying notes to condensed consolidated financial statements.

4


GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share data)
 
For the three months ended May 2, 2020
 
Guess?, Inc. Stockholders’ Equity
 
 
 
 
 
Common Stock
 
 
 
 
 
 
 
Treasury Stock
 
 
 
 
 
Shares
 
Amount
 
Paid-in
Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Loss
 
Shares
 
Amount
 
Nonredeemable
Noncontrolling
Interests
 
Total
Balance at February 1, 2020
65,848,510

 
$
658

 
$
563,004

 
$
1,130,409

 
$
(139,910
)
 
77,019,437

 
$
(914,447
)
 
$
21,633

 
$
661,347

Net loss

 

 

 
(157,666
)
 

 

 

 
(2,872
)
 
(160,538
)
Other comprehensive loss, net of income tax of ($147)

 

 

 

 
(13,392
)
 

 

 
(3,626
)
 
(17,018
)
Issuance of common stock under stock compensation plans including tax effect
1,763,311

 
18

 
(24,264
)
 

 

 
(1,770,223
)
 
21,017

 

 
(3,229
)
Issuance of stock under Employee Stock Purchase Plan
32,427

 

 
(192
)
 

 

 
(32,427
)
 
385

 

 
193

Share-based compensation

 

 
5,771

 
15

 

 

 

 

 
5,786

Dividends, net of forfeitures on non-participating securities

 

 

 
248

 

 

 

 

 
248

Balance at May 2, 2020
67,644,248

 
$
676

 
$
544,319

 
$
973,006

 
$
(153,302
)
 
75,216,787

 
$
(893,045
)
 
$
15,135

 
$
486,789




5


GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in thousands, except share data)
 
For the three months ended May 4, 2019
 
Guess?, Inc. Stockholders’ Equity
 
 
 
 
 
Common Stock
 
 
 
 
 
 
 
Treasury Stock
 
 
 
 
 
Shares
 
Amount
 
Paid-in
Capital
 
Retained Earnings
 
Accumulated Other Comprehensive Loss
 
Shares
 
Amount
 
Nonredeemable
Noncontrolling
Interests
 
Total
Balance at February 2, 2019
81,379,660

 
$
814

 
$
523,331

 
$
1,077,747

 
$
(126,179
)
 
61,327,640

 
$
(638,486
)
 
$
16,418

 
$
853,645

Cumulative adjustment from adoption of new accounting guidance

 

 

 
(1,684
)
 
1,981

 

 

 

 
297

Net earnings (loss)

 

 

 
(21,374
)
 

 

 

 
793

 
(20,581
)
Other comprehensive income (loss), net of income tax of ($499)

 

 

 

 
(8,508
)
 

 

 
310

 
(8,198
)
Issuance of common stock under stock compensation plans including tax effect
545,881

 
5

 
(3,042
)
 

 

 
(211,221
)
 
2,225

 

 
(812
)
Issuance of stock under Employee Stock Purchase Plan
11,377

 
1

 
69

 

 

 
(11,377
)
 
120

 

 
190

Share-based compensation

 

 
4,440

 
28

 

 

 

 

 
4,468

Dividends, net of forfeitures on non-participating securities

 

 

 
(18,331
)
 

 

 

 

 
(18,331
)
Share repurchases
(10,264,052
)
 
(103
)
 
103

 

 

 
10,264,052

 
(201,564
)
 

 
(201,564
)
Equity component value of convertible note issuance, net

 

 
42,324

 

 

 

 

 

 
42,324

Sale of common stock warrant

 

 
28,080

 

 

 

 

 

 
28,080

Purchase of convertible note hedge

 

 
(46,440
)
 

 

 

 

 

 
(46,440
)
Equity forward contract issuance

 

 
(68,000
)
 

 

 

 

 

 
(68,000
)
Balance at May 4, 2019
71,672,866

 
$
717

 
$
480,865

 
$
1,036,386

 
$
(132,706
)
 
71,369,094

 
$
(837,705
)
 
$
17,521

 
$
565,078


See accompanying notes to condensed consolidated financial statements.

6


GUESS?, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
May 2, 2020
(unaudited) 
(1)
Basis of Presentation and New Accounting Guidance
Description of the Business
Guess?, Inc. (the “Company” or “GUESS?”) designs, markets, distributes and licenses a leading lifestyle collection of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The Company’s designs are sold in GUESS? owned stores, to a network of wholesale accounts that includes better department stores, selected specialty retailers and upscale boutiques and through the Internet. GUESS? branded products, some of which are produced under license, are also sold internationally through a series of retail store licensees and wholesale distributors.
Basis of Presentation
In the opinion of management, the accompanying unaudited condensed consolidated financial statements of the Company contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheets as of May 2, 2020 and February 1, 2020, the condensed consolidated statements of loss, comprehensive loss, cash flows and stockholders’ equity for the three months ended May 2, 2020 and May 4, 2019. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three months ended May 2, 2020 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 1, 2020.
The three months ended May 2, 2020 had the same number of days as the three months ended May 4, 2019. All references herein to “fiscal 2021,” “fiscal 2020” and “fiscal 2019” represent the results of the 52-week fiscal year ending January 30, 2021 and the 52-week fiscal years ended February 1, 2020 and February 2, 2019, respectively.
Reclassifications
The Company has made certain reclassifications to prior period amounts to conform to the current period presentation within the accompanying notes to the condensed consolidated financial statements.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosed in the accompanying notes. Significant areas requiring the use of management estimates relate to the allowances for doubtful accounts, sales return and markdown allowances, gift card and loyalty accruals, valuation of inventories, share-based compensation, recoverability of deferred taxes, unrecognized tax benefits, the useful life of assets for depreciation and amortization, evaluation of asset impairment, pension obligations, workers’ compensation and medical self-insurance expense and accruals, litigation reserves and restructuring expense and accruals. Actual results could differ from those estimates. Revisions in estimates could materially impact the results of operations and financial position.

7


As discussed further below, the coronavirus (or “COVID-19”) pandemic has materially impacted the Company’s results during the three months ended May 2, 2020. The Company’s operations could continue to be impacted in ways we are not able to predict today due to the developing situation. While the Company believes it has made reasonable accounting estimates based on the facts and circumstances that were available as of the reporting date, to the extent there are differences between these estimates and actual results, the Company’s results of operations and financial position could be materially impacted.
COVID-19 Business Update
The COVID-19 pandemic has had and is continuing to have a material impact on the Company’s financial performance. The pandemic is ongoing and dynamic in nature and, to date, the Company has experienced temporary closures in key regions globally, along with other major retailers. Beginning in mid-April, the Company began to reopen some of its stores in Europe. In May 2020, the Company began to reopen some of its stores in the U.S. and Canada. In Asia, where store closures related to COVID-19 began, all of the Company’s directly-operated stores have reopened. The Company will continue to reopen stores in phases, as state and local guidelines and conditions permit, taking an informed, measured approach based on a number of factors. The Company’s e-commerce sites remain open in all regions. In addition, retail stores that are open have and continue to experience significant reductions in traffic and therefore, revenue. The Company’s e-commerce sites have experienced lower traffic, but this has been partially offset by a strengthening in conversion. Many of the Company’s wholesale and licensing partners have also substantially reduced their operations. The Company has and will continue to bring back store associates and support staff as stores reopen. The extent and duration of the global pandemic remains uncertain and may continue to impact consumer purchasing activity throughout the year.
During the first quarter of fiscal 2021, in addition to the negative impact from lower net revenue, the Company’s operating results also reflected asset impairment charges as well as additional inventory valuation reserves and higher allowances for markdowns and doubtful accounts due to the ongoing effects of the COVID-19 pandemic. These charges were partially offset by the favorable impact from various European and U.S. government assistance programs related primarily to the recovery of employee payroll costs as well as certain favorable tax treatments.
During the first half of fiscal 2021, the Company implemented a number of measures to help mitigate the operating and financial impact of the pandemic, including: (i) furloughing its U.S. and Canada store associates and significant portions of its U.S. and Canada corporate and distribution center associates and permanently reducing U.S. corporate headcount; (ii) implementing temporary tiered salary reductions for management level corporate employees, including its executive officers; (iii) deferring annual merit increases; (iv) executing substantial reductions in expenses, store occupancy costs, capital expenditures and overall costs, including through reduced inventory purchases; (v) working globally with country management teams to maximize the Company’s participation in all eligible government or other initiatives available to businesses or employees impacted by the COVID-19 pandemic; (vi) drawing down on certain credit facilities and entering into certain term loans to ensure financial flexibility and maintain maximum liquidity; (vii) engaging with landlords to negotiate rent deferrals or other rent concessions; (viii) working with vendors to extend payment terms; and (ix) postponing its decision related to the payment of its quarterly cash dividend.
In response to the COVID-19 pandemic, governments in various jurisdictions have implemented relief programs to provide assistance in the form of wage subsidies and tax related payment deferrals (related to payroll, income, sales and other taxes). The Company is leveraging these relief initiatives where able to help mitigate expenses and provide additional liquidity. An example of such an economic relief program is the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was enacted by the U.S. government in March 2020. The provisions of the Act include the deferral of the employer portion of social security taxes, creation of refundable employee retention tax credits, relaxation of the net interest deduction limitations, technical amendment for qualified improvement property deduction and modification of net operating loss carryback periods.

8


In light of store closures, the Company has taken certain actions with respect to certain of its existing leases, including engaging with landlords to discuss rent deferrals as well as other rent concessions. Consistent with updated guidance from the Financial Accounting Standards Board (“FASB”) in April 2020, the Company has elected to treat such agreed-upon payment deferrals related to the COVID-19 pandemic as if there were no modifications to the lease contract and has accrued such amounts within the current portion of operating lease liabilities in the Company’s condensed consolidated balance sheet. The Company has elected to treat other rent concessions which result in reduced lease payments as variable lease payments if the concessions that are provided are for a period of less than 12 months. For any rent concessions which reduce the lease payments for a period of more than 12 months or change the payment terms from minimum rental amounts to amounts based on a percentage of sales volume for the remainder of the lease term, the Company has elected to treat such changes as lease modifications under the current lease guidance.
Revenue Recognition
The Company recognizes the majority of its revenue from its direct-to-consumer (brick-and-mortar retail stores and concessions as well as e-commerce) and wholesale distribution channels at a point in time when it satisfies a performance obligation and transfers control of the product to the respective customer.
The Company also recognizes royalty revenue from its trademark license agreements. The Company’s trademark license agreements represent symbolic licenses that are dependent on the Company’s continued support over the term of the license agreement. The amount of revenue that is recognized from the licensing arrangements is based on sales-based royalty and advertising fund contributions as well as specific fixed payments, where applicable. The Company’s trademark license agreements customarily provide for a multi-year initial term ranging from three to ten years, and may contain options to renew prior to expiration for an additional multi-year period. The unrecognized portion of upfront payments is included in deferred royalties in accrued expenses and other long-term liabilities depending on the short or long-term nature of the payments to be recognized. As of May 2, 2020, the Company had $6.5 million and $17.1 million of deferred royalties related to these upfront payments included in accrued expenses and other long-term liabilities, respectively. This compares to $6.7 million and $18.7 million of deferred royalties related to these upfront payments included in accrued expenses and other long-term liabilities, respectively, at February 1, 2020. During the three months ended May 2, 2020 and May 4, 2019, the Company recognized $3.6 million and $3.1 million in net royalties related to the amortization of the deferred royalties, respectively.
Refer to Note 8 for further information on disaggregation of revenue by segment and country.
Allowance for Doubtful Accounts
During the first quarter of fiscal 2021, the Company adopted authoritative guidance related to the measurement of credit losses on financial instruments. This guidance replaces the current “as incurred” loss model with an “expected loss” model which requires the recognition of an allowance for credit losses expected to be incurred over an asset’s lifetime. The adoption of this guidance did not have a material impact on the Company’s allowance for doubtful accounts.
In the normal course of business, the Company grants credit directly to certain wholesale customers after a credit analysis is performed based on financial and other criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses that may result from the inability of its wholesale customers and licensing partners to make their required payments. The Company bases its allowances on analysis of the aging of accounts receivable at the date of the financial statements, assessments of historical and current collection trends, an evaluation of the impact of current and future forecasted economic conditions and whether the Company has obtained credit insurance or other guarantees. Management performs regular evaluations concerning the ability of its customers and records a provision for doubtful accounts based on these evaluations.

9


As of May 2, 2020, approximately 54% of the Company’s total net trade accounts receivable and 66% of its European net trade receivables were subject to credit insurance coverage, certain bank guarantees or letters of credit for collection purposes. The Company’s credit insurance coverage contains certain terms and conditions specifying deductibles and annual claim limits. Management evaluates the creditworthiness of the counterparties to the credit insurance, bank guarantees, and letters of credit and records a provision for the risk of loss on these instruments based on these evaluations as considered necessary.
The Company’s credit losses for the periods presented were not significant compared to sales and did not significantly exceed management’s estimates. Refer to Note 5 for further information on the Company’s allowance for doubtful accounts.
Other Assets
During fiscal 2019, the Company invested $8.3 million in a privately-held apparel company and holds a 30% minority interest. The Company’s ownership in this company is accounted for under the equity method of accounting. The Company recognized its proportionate share of net losses of $2.1 million in other expense in its condensed consolidated statements of loss during the three months ended May 2, 2020.
New Accounting Guidance
Changes in Accounting Policies
In June 2016, the FASB issued authoritative guidance related to the measurement of credit losses on financial instruments. This guidance replaces the current “as incurred” loss model with an “expected loss” model which requires the recognition of an allowance for credit losses expected to be incurred over an asset’s lifetime. The measurement of expected credit losses is based on relevant information about past events, current conditions and reasonable and supportable forecasts impacting the collectibility of the reported amounts. This guidance was adopted as of February 2, 2020 on a modified retrospective basis and did not have a material impact on the Company’s consolidated financial statements or related disclosures.
In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements on fair value measurements. This guidance was adopted as of February 2, 2020 on a prospective basis and did not have a material impact on the Company’s related disclosures.
In August 2018, the FASB issued authoritative guidance to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The Company adopted this guidance as of February 2, 2020 on a prospective basis. Prior to the adoption of this guidance, the Company capitalized implementation costs related to a hosting arrangement that is a service contract to property and equipment, net in the Company’s consolidated balance sheets and included such expenditures within the investing section of the Company’s consolidated statements of cash flows. These assets were amortized over their estimated useful life with the related amortization included in depreciation and amortization in either cost of product sales or selling, general and administrative (“SG&A”) expenses in the Company’s consolidated statements of income (loss) depending on the nature of how the assets were used. Subsequent to the adoption of this guidance, these costs are included within other current assets or other assets in the Company’s consolidated balance sheets depending on the short or long-term nature of the underlying hosting agreement with such expenditures included in the operating section of the Company’s consolidated statements of cash flows. These assets are now amortized over the shorter of the estimated useful life or the term of the underlying hosting agreement, including any probable renewal periods, with the related amortization included in cost of product sales or SG&A expenses in the Company’s consolidated statements of income (loss), consistent with the presentation of the expense related to the underlying hosting arrangement. The adoption of this guidance, including the different classification requirements for the implementation costs, did not have a material impact on the Company’s consolidated financial statements or the related disclosures.

10


Recently Issued Accounting Guidance
In August 2018, the FASB issued authoritative guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. This guidance is effective for fiscal years beginning after December 15, 2020, which will be the Company’s first quarter of fiscal 2022, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its related disclosures.
In December 2019, the FASB issued authoritative guidance that simplifies the accounting for income taxes by eliminating certain exceptions to general principles related to intraperiod tax allocations, ownership changes in foreign investments and calculating income taxes in an interim period when year-to-date losses exceed total anticipated losses. The new guidance also simplifies the accounting for income taxes related to franchise taxes that are partially based on income, the step up in the tax basis of goodwill, allocation of current and deferred tax expense for certain legal entities and enacted changes in tax laws or rates during interim periods, among other improvements. This guidance is effective for fiscal years beginning after December 15, 2020, which will be the Company’s first quarter of fiscal 2022, with early adoption permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements and related disclosures.
In March 2020, the FASB issued authoritative guidance to provide temporary optional expedients and exceptions related to contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates, such as SOFR. This guidance may be adopted as of March 12, 2020 through December 31, 2022. This temporary relief cannot be applied to contract modifications after December 31, 2022. The Company is currently evaluating its election options and the impact on its consolidated financial statements and related disclosures.
(2)    Lease Accounting
The Company primarily leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through January 2039. The Company also leases some of its equipment as well as computer hardware and software under operating and finance lease agreements expiring on various dates through May 2027.
The Company’s lease agreements primarily provide for lease payments based on a minimum annual rental amount, a percentage of annual sales volume, periodic adjustments related to inflation or a combination of such lease payments. Certain retail store leases provide for lease payments based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 3% to 24%, when specific sales volumes are exceeded. The Company’s retail concession leases also provide for lease payments primarily based upon a percentage of annual sales volume, which averages approximately 36%.
In addition to the amounts as disclosed below, the Company has estimated additional operating lease commitments of approximately $10.9 million for leases where the Company has not yet taken possession of the underlying asset as of May 2, 2020. As such, the related operating lease ROU assets and operating lease liabilities have not been recognized in the Company’s condensed consolidated balance sheet as of May 2, 2020.

11


As of May 2, 2020 and February 1, 2020, the components of leases are as follows (in thousands):
 
Balance Sheet Location
May 2, 2020
 
Feb 1, 2020
Assets
 
 
 
 
Operating
Operating lease right-of-use assets
$
778,030

 
$
851,990

Finance
Property and equipment, net
15,159

 
15,972

Total lease assets
$
793,189

 
$
867,962

 
 
 
 
 
Liabilities
 
 
 
 
Current:
 
 
 
 
Operating
Current portion of operating lease liabilities
$
226,967

 
$
192,066

Finance
Current portion of borrowings and finance lease obligations
2,629

 
2,273

Noncurrent:
 
 
 
 
Operating
Long-term operating lease liabilities
659,947

 
714,079

Finance
Long-term debt and finance lease obligations
13,222

 
14,262

Total lease liabilities
$
902,765

 
$
922,680



As of May 2, 2020 and May 4, 2019, the components of lease costs are as follows (in thousands):
 
 
Three Months Ended
 
Income Statement Location
May 2, 2020
 
May 4, 2019
Operating lease costs
Cost of product sales
$
55,369

 
$
58,816

Operating lease costs
Selling, general and administrative expenses
5,176

 
5,264

Finance lease costs
 
 
 
 
Amortization of leased assets1
Cost of product sales
681

 
43

Amortization of leased assets1
Selling, general and administrative expenses
1,278

 
543

Interest on lease liabilities
Interest expense
282

 
287

Variable lease costs2
Cost of product sales
14,348

 
24,825

Variable lease costs2
Selling, general and administrative expenses
579

 
827

Short-term lease costs
Cost of product sales
239

 

Short-term lease costs
Selling, general and administrative expenses
1,789

 
212

Total lease costs
$
79,741

 
$
90,817

______________________________________________________________________
Notes:
1  
Amortization of leased assets related to finance leases are included in depreciation expense within cost of product sales or selling, general and administrative expenses depending on the nature of the asset in the Company’s condensed consolidated statements of loss.
2  
During the three months ended May 2, 2020, variable lease costs included certain rent concessions granted related to the COVID-19 pandemic. Refer to Note 1 for further information.

Maturities of the Company’s operating and finance lease liabilities as of May 2, 2020 are as follows (in thousands):
Maturity of Lease Liabilities
Operating Leases
 
Finance Leases
 
Total
20211
$
185,976

 
$
2,441

 
$
188,417

2022
198,951

 
3,660

 
202,611

2023
164,949

 
3,251

 
168,200

2024
136,666

 
3,072

 
139,738

2025
95,606

 
2,289

 
97,895

After 2025
189,303

 
4,867

 
194,170

Total lease payments
971,451

 
19,580

 
991,031

Less: Interest
84,537

 
3,729

 
88,266

Present value of lease liabilities
$
886,914

 
$
15,851

 
$
902,765

______________________________________________________________________
Notes:
1 
Represents the maturity of lease liabilities for the remainder of fiscal 2021 and also includes rent payments that have been deferred due to the COVID-19 pandemic. This amount does not include payments made during the three months ended May 2, 2020.

12


Other supplemental information is as follows (dollars in thousands):
Lease Term and Discount Rate
May 2, 2020
Weighted-average remaining lease term (years)
 
Operating leases
5.8 years
Finance leases
6.1 years
Weighted-average discount rate
 
Operating leases
3.5%
Finance leases
7.1%
 
Three Months Ended
Supplemental Cash Flow Information
May 2, 2020