Guess expands access to capital in North America
Guess Inc. announced on Thursday that it has expanded its access to capital in North America.
In particular, the fashion company has entered into a $150 million senior secured asset-based revolving credit facility with a term of five years. This facility amends and extends its existing $120 million North American credit facility.
The credit facility will include annual interest rate and fee adjustments based on the company’s achievement of certain sustainability goals in its operating and manufacturing processes.
The move follows a new European credit facility, which was established earlier this year under similar terms.
“We are very pleased to finalize this credit facility, which expands our access to capital in North America and extends our existing facility for another five years,” said Carlos Alberini, chief executive officer.
“Combined with this year’s new €250 million European facility, the company will now have access to over $400 million of capital across both North America and Europe, which reflects our lenders’ confidence in our business strategies and financial position. Importantly, both facilities also include sustainability incentives, which align our financial and sustainability goals and underscore our commitment to protecting the environment by integrating sustainability into our operations.”
Last month, the Los Angeles-based company said total net revenue for the third quarter ending October 29 decreased 2% to $633.4 million. In constant currency, net revenue increased by 10%.
Looking ahead, for the fourth quarter of fiscal 2023, Guess said it expects revenues to be down around 3.5% in U.S. dollars (up 3.5% in constant currency), while for the full fiscal, it expects revenues to be up around 2% in U.S. dollars (10.5% in constant currency).
Guess currently operates 1,064 retail stores in the Americas, Europe and Asia.
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