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GUESS?, Inc. and Subsidiaries
N O T E 1 2 . Q U A R T E R L Y I N F O R M A T I O N ( U N A U D I T E D )
The following is a summary of the unaudited quarterly financial information for the years ended December 31, 2000 and 1999 (in thou-
sands, except per share data):
Ye a r E n d e d D e c e m b e r 3 1 , 2 0 0 0
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
Net revenue
$188,844
$177,681
$216,363
$196,329
Gross profit
79,146
69,379
77,157
57,931
Net earnings (loss)
14,408
6,811
8,363
(13,089)
Earnings (loss) per share:
Basic
$
0.33
$
0.16
$
0.19
$
(0.30)
Diluted
$
0.33
$
0.16
$
0.19
$
(0.30)
Year Ended December 31, 1999
First
Second
Third
Fourth
Quarter
Quarter
Quarter
Quarter
Net revenue
$129,052
$119,557
$155,547
$195,494
Gross profit
54,028
55,035
65,261
93,666
Net earnings
11,486
7,017
14,235
19,162
Earnings per share:
Basic
$
0.27
$
0.16
$
0.33
$
0.45
Diluted
$
0.27
$
0.16
$
0.33
$
0.44
The quarterly information presented herein for the quarters ended April 1, July 1, and September 30, 2000, presents information as
amended in the Forms 10-Q/A filed on April 2, 2001.
During the fourth quarter of 2000, the Company recorded special charges of $15.6 million principally related to $5.7 million of inventory
write-downs to value its inventory at the lower of cost or market; $4.5 million of restructuring charges related to underperforming stores
that the Company plans to close and for new stores that the Company has decided not to open; $4.1 million to write-down permanently
impaired assets, including fixed assets related to unprofitable stores and an investment in an internet company; and $1.3 million of other
charges. The inventory provisions have been included in cost of sales.
During the fourth quarter of 1999, the Company enhanced its ability to estimate reserves through improved processes and more current and
accurate data. As a result, the Company revised its estimate of certain reserves. This resulted in a reduction of cost of sales of $2.3 million.
During the second quarter of 1999, in accordance with the requirements of EITF 94-3, "Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring"), the Company recorded a $3.2 million
charge for future severance costs related to the relocation of distribution operations to Louisville. In the third quarter of 1999, the Company
realized a non-recurring pretax gain of $3.8 million on the disposition of property and equipment.
