Company registration number 05304239 (England and Wales)
GUESS U.K. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3 FEBRUARY 2024
GUESS U.K. LIMITED
COMPANY INFORMATION
Directors
Mr W Ramos
Mr G Burlini
Secretary
Mr U Boveri
Company number
05304239
Registered office
The Courtyard
River Way
Uckfield
East Sussex
TN22 1SL
Auditor
Plummer Parsons
18 Hyde Gardens
Eastbourne
East Sussex
BN21 4PT
Business address
7-8 Market Place
3rd Floor
London
W1W 8AG
GUESS U.K. LIMITED
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 8
Independent auditor's report
9 - 12
Statement of comprehensive income
13
Statement of financial position
14
Statement of changes in equity
15
Notes to the financial statements
16 - 31
GUESS U.K. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 1 -

The directors present the strategic report for the year ended 3 February 2024.

 

Guess U.K. Limited (the "Company" or "GUESS") distributes one of the world's leading lifestyle collections of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The apparel is marketed under numerous trademarks. The lines include full collections of clothing, including jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, knitwear and intimate apparel. GUESS also selectively distributes a broad range of products that complement the apparel lines, including eyewear, watches, handbags, footwear, kids' and infants' apparel, outerwear, fragrance, jewellery and other fashion accessories.

 

The products are sold through direct-to-consumer distribution channels. The core customer is a style-conscious consumer primarily between the ages of 20 and 45. These consumers are part of a highly desirable demographic that we believe, historically, has had significant disposable income. We also appeal to customers outside this group through specialty product lines that include MARCIANO, a more sophisticated fashion line targeted to women and men, and GUESS Kids, targeted to boys and girls ages 6 to 12.

 

The company operates on a 52/53-week fiscal year calendar, which ends on the Saturday nearest to 31 January of each year. This fiscal year started on 29 January 2023 and ended on 03 February 2024.

 

GUESS has several business strengths that sets it apart from the competition, including:

 

Brand equity: The GUESS? brand is an integral part of our business, a significant strategic asset and a primary source of sustainable competitive advantage. The GUESS? brand communicates a distinctive image that is fun, fashionable and sexy.

 

Brand loyalty, name awareness, perceived quality, strong brand images, public relations,

publicity, promotional events and trademarks all contribute to the reputation and integrity of the GUESS? brand.

 

Multiple store concepts: The Company sells through different store concepts namely GUESS? full-price retail stores, GUESS? factory outlet stores and GUESS? accessories stores. This allows us to target the various demographics in each region through dedicated store concepts that market each brand or concept specifically to the desired customer population.

 

Fair review of the business

We continued to show store-by-store growth in the period. Retail sales increased from £20.4 million in FY23 to £20.9 million in FY24. Our net turnover for the period decreased by £1.6 million compared to the previous financial year due to wholesales.

 

No new store openings and two closures in FY24.

 

Gross profit margin figures have shown a general stability.

 

Business rates decreased from £2 million in FY23 to £1.5 million in FY24.

 

Energy costs have been quite aligned to previous financial year.

 

Our key financial highlights for the year are Revenue, Gross Profit and Loss before taxations as shown in the Statement of Comprehensive Income on page 10 of the financial statement.

GUESS U.K. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 2 -
Statement of principal risks and uncertainties

Demand for our merchandise may decrease and the appeal of our brand image may diminish if we fail to identify and rapidly respond to consumers' fashion tastes. - The apparel industry is subject to rapidly evolving fashion trends and shifting consumer demands. Accordingly, our brand image and our profitability are heavily dependent upon both the priority our target customers place on fashion and our ability to anticipate, identify and capitalise upon emerging fashion trends. Current fashion tastes place significant emphasis on a fashionable look. In the past, this emphasis has increased and decreased through fashion cycles. If we fail to anticipate, identify or react appropriately, or in a timely manner, to fashion trends, we could experience reduced consumer acceptance of our products and a diminished brand image. These factors could result in higher wholesale markdowns, lower average unit retail prices, lower product margins and decreased sales volumes for our products, and could have a material adverse effect on our results of operations and financial condition.

 

The apparel industry is highly competitive, and we may face difficulties competing successfully in the future. - We operate in a highly competitive and fragmented industry with low barriers to entry. We compete with many apparel distributors as well as many well-known designers. Our retail and factory outlet stores compete with many other retailers, including department stores. Our licensed apparel and accessories compete with many well-known brands. We also face significant competition from global and regional branded apparel companies, as well as retailers that market apparel under their own labels. These and other competitors pose significant challenges to our market share and to our ability to successfully develop new markets. Some of our competitors have competitive advantages over us, including greater financial and marketing resources, higher wage rates, lower prices, more desirable store locations, greater online presence and faster speed to market. In addition, our larger competitors may be better equipped than us to adapt to changing conditions that affect the competitive market and newer competitors may be viewed as more desirable by fashion conscious consumers. Any of these competition-related factors could result in reductions in sales or prices of our products and could have a material adverse effect on our results of operations and financial condition.

 

Poor or uncertain economic conditions, and the resulting negative impact on consumer confidence and spending, have had and could continue to have an adverse effect on the apparel industry and on our operating results. - The apparel industry is cyclical in nature and is particularly affected by adverse trends in the general economy. Purchases of apparel and related merchandise are generally discretionary and therefore tend to decline during periods of economic uncertainty and also may decline at other times. In addition to the factors contributing to the current economic environment, there are a number of other factors that could contribute to reduced levels of consumer spending, such as increases in interest rates, currency fluctuations, inflation, unemployment, consumer debt levels, inclement weather, taxation rates, net worth reductions based on market declines or uncertainty, energy prices and austerity measures. Similarly, natural disasters, labour unrest, actual or potential terrorist acts, geopolitical unrest and other conflicts can also create significant instability and uncertainty in the world, causing consumers to defer purchases and travel, or prevent our suppliers and service providers from providing required services or materials to us. These or other factors could materially and adversely affect our business, prospects, operating results, financial condition and cash flows. The COVID-19 pandemic has had a material impact on the company’s financial performance. Measures taken by the government to contain the virus have affected economic activity. We have taken number of measures to monitor and mitigate the effect of COVID-19, such as safety and health measures for our people, customers and stakeholders. In response to the COVID-19 pandemic, governments in various jurisdictions have implemented relief programs to provide assistance in the form of wage subsidies (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.

 

 

GUESS U.K. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 3 -
Financial position

We are satisfied with the company's position at the year end. Strong financial capital management is a fundamental component of the overall strategy of the company and that of the group of which the company is a member. The company maintains a capital structure that is appropriate to the ongoing needs of the business. Liquidity is primarily needed to fund working capital, the expansion and remodelling of retail stores, in-store programs, systems, and other existing operations. During the fiscal year the company relied primarily on trade credit, available cash, internally generated funds, and financing from other group companies to finance its operations. The Company issued notice of a Company Voluntary Arrangement (CVA) taking effect which has been entered into to reduce the significant effect of the cost of real estate. The CVA took effect on the 8 December 2020, with the majority of Landlords voting in favour of the agreement. The CVA allowed the company to reduce the rent costs significantly, starting from the March 2020 until the end of the period in 2023.

 

We anticipate that the company will be able to satisfy its ongoing cash requirements during the next twelve months for working capital, capital expenditure and operating lease obligations. At the year end the company had net current liabilities of £0.7k (FY 23: £710k). However, a substantial proportion of current liabilities relates to group companies who have offered continued support to the company.

 

The company's policy is to ensure continuity of trading. To date, bank borrowing has not been necessary as funding has been provided within the group and the group companies have guaranteed support. At the period end the company had cash reserves of £721k (FY23: £805k).

Future developments and Brexit

The management continues to review the progress of the Brexit process and measure the effect that the changes have or may have on the business and to monitor price costs increases especially the energy price uplift.

Section 172(1) Statement

The revised UK Corporate Governance Code (‘2018 Code’) was published in July 2018 and applies to accounting periods beginning on or after January 1, 2019. The Companies (Miscellaneous Reporting) Regulations 2018 (‘2018 MRR’) require Directors to explain how they considered the broader matters set out in section 172(1) (A) to (F) of the Companies Act 2006 (‘S172’) when performing their duty to promote the success of the Company under S172. This S172 statement, which is reported for the first time, focuses on matters of strategic importance to the Company, and the level of information disclosed is consistent with the size and the complexity of the business.

 

General confirmation of Directors' Duties

The Company's decision-making process is centralised as part of the European Group and the wider Group under Guess? Inc and the Company's own board of Directors. One of the Company's Directors is regularly party of the European Group discussions and the other oversees the county management. Decisions affecting the Company are still considered by the Directors to ensure it is in the best interest of the Company. When making decisions, the relevant Group board and the Directors (referred to here on as the "Board") ensure that they act in the way they consider, in good faith, would most likely promote the Company's success for the benefit of its members as a whole, and in doing so have regard (among other matters) to:

GUESS U.K. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 4 -

S172(1) (A) “The likely consequences of any decision in the long term”

The Board understands the business and the evolving environment in which we operate. Our purpose to be a leading lifestyle collection of apparel and accessories and the strategy set by the Board is intended to strengthen our position has long term effects with regard to investments in retail space and the marketing of our brand. Along side this we balance our strategic business need with our sustainability plan which is organised into commitments and goals that focus on Our World – the people, operations and suppliers we work with – and Our Brand – the customers and communities we connect with. Our approach is aligned with the Global Reporting Initiative (GRI) Standards to determine topics that are important to both our stakeholders and to the sustainable growth of our business and is broken down into 3 phases being achieved over several years.

 

S172(1) (B) “The interests of the company’s employees”

The Board recognises that employees are fundamental and core to our business and delivery of our strategic ambitions. The success of our business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, from pay and benefits to our health, safety and workplace environment, the Directors factor the implications of decisions on employees and the wider workforce, where relevant and feasible. More information on this can be found at https://sustainability.guess.com/empowering-our-people

 

S172(1) (C) “The need to foster the company’s business relationships with suppliers, customers and others”

Delivering our strategy requires strong mutually beneficial relationships with suppliers, customers, governments, and group partners. We seek the promotion and application of certain general principles in such relationships. The ability to promote these principles effectively is an important factor in the decision to enter into or remain in such relationships. The Board also reviews and approves approach to suppliers. The businesses continuously assess the priorities related to customers and those with whom we do business, and the Board engages with the businesses on these topics.

 

S172(1) (D) “The impact of the company’s operations on the community and the environment”

This aspect is inherent in our strategic ambitions. As such, the Board receives information on these topics to both provide relevant information for specific decisions and to provide ongoing overviews at the group level. This is supported by the GUESS Sustainability Plan where we aim to integrate sustainable practices into our operations by focusing on product responsibility, being good water stewards and reducing our greenhouse gas emissions. More can be found at https://sustainability.guess.com/protecting-our-environment

 

S172(1) (E) “The desirability of the company maintaining a reputation for high standards of business conduct”

The Board aims to maintain high standards for merchandise quality and integrity in ways which are

economically, environmentally and socially responsible. The Board periodically reviews and approves clear frameworks, such as our General Business Principles, Code of Conduct, and Ethics & Compliance, to ensure that its high standards are maintained both within the business and the business relationships we maintain. This, complemented by the ways the Board is informed and monitors compliance with relevant governance standards, helps assure its decisions are taken and that the Company acts in ways that promote high standards of business conduct.

 

S172(1) (F) “The need to act fairly as between members of the company”

After weighing up all relevant factors, the Board considers which course of action best enables delivery of our strategy through the long-term, taking into consideration the impact on stakeholders. In doing so, our Directors act fairly as between the Company’s members but are not required to balance the Company’s interest with those of other stakeholders, and this can sometimes mean that certain stakeholder interests may not be fully aligned.

 

Employee engagement

We recognise that the development of GUESS is the result of the loyalty and passion of our people. Their efforts are appreciated. Our aim is to ensure that employees are informed about the business locally and with a greater understanding of the Company's aims.

 

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting performance.

 

GUESS U.K. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 5 -

On behalf of the board

Mr W Ramos
Director
21 February 2025
GUESS U.K. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 6 -

The directors present their annual report and audited financial statements for the year ended 3 February 2024.

Results and dividends

The results for the year are set out on page 13.

The results for the year is still slightly impacted by CVA procedure we put in place in order to maintain the continuity of the business (the CVA formally ended on 12 October 2023).

 

The directors do not recommend payment of an ordinary dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr W Ramos
Mr G Burlini
Financial instruments
Treasury operations and financial instruments

The company uses financial instruments, other than derivatives, comprising borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these is to raise finance for the company's operations and manage interest rate risks arising from the company's activities, bank overdrafts, and intercompany loans. The directors review and agree policies for managing each of these risks and they are summarised below:

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest any cash assets safely and profitably. The company policy throughout the year has been to ensure continuity of funding by using cash pooling from the company's immediate parent company. Debt is structured so repayments can be made out of cash generated through operations.

Foreign currency risk

The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits, but does not demand, that these exposures be hedged in order to fix the cost in sterling.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee engagement

We recognise that the development of GUESS is the result of the loyalty and passion of our people. Their efforts are appreciated. Our aim is to ensure that employees are informed about the business locally and with a greater understanding of the company's aims.

 

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the performance.

 

We aim to provide equal opportunities, regardless of sex, race, religion or belief, sexual orientation, disability or ethnic origin. We do all that is practical to meet our responsibilities towards the employment and training of disabled people. Where one of our people becomes disabled, every effort is made to provide continuity of employment in the same job or a suitable alternative.

GUESS U.K. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 7 -
Post reporting date events

COVID 19 and Going Concern

We have taken several measures to monitor and mitigate the effect of COVID-19, such as safety and health measures for our people, customers and stakeholders.

 

During FY24 we closed two stores, Liverpool, on March 2023 and London Brent, on May 2023. We have not identified any significant COVID-19 impact on the fair value of assets.

 

On the 8 December 2020, the Company issued notice of a Company Voluntary Arrangement taking effect which helped significantly to reduce the cost of real estate and its liability to Guess Europe Sagl. The CVA ended on 12 October 2023.

 

We will continue to follow the various government policies and advice and, in parallel, we will do our utmost to continue our operations in the best and safest way possible without jeopardising the health of our people, customers and stakeholders

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

GUESS U.K. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 8 -
On behalf of the board
Mr W Ramos
Director
21 February 2025
GUESS U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GUESS U.K. LIMITED
- 9 -
Opinion

We have audited the financial statements of Guess U.K. Limited (the 'company') for the year ended 3 February 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

GUESS U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GUESS U.K. LIMITED (CONTINUED)
- 10 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, and through discussion with management (as required by auditing standards), we identified that the principal risks of non-compliance with laws and regulations related to Companies Act 2006, health and safety, anti-bribery, anti-money laundering, employment law, Data Protection Act, GDPR, the Consumer Rights Act and other relevant legislation.

 

We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to inappropriate journal entries to increase revenue or reduce expenditure, management bias in accounting estimates and judgmental areas.

GUESS U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GUESS U.K. LIMITED (CONTINUED)
- 11 -

Audit procedures performed by the company engagement team included:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

GUESS U.K. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GUESS U.K. LIMITED (CONTINUED)
- 12 -

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Steven Griffen FCA FCCA
Senior Statutory Auditor
For and on behalf of Plummer Parsons
27 February 2025
Chartered Accountants
Statutory Auditor
18 Hyde Gardens
Eastbourne
East Sussex
BN21 4PT
GUESS U.K. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 13 -
2024
2023
Notes
£
£
Revenue
3
24,350,800
25,990,893
Cost of sales
(6,137,903)
(8,739,269)
Gross profit
18,212,897
17,251,624
Administrative expenses
(17,471,923)
(16,493,119)
Other operating income/(expenses)
103,827
(116,471)
Operating profit
5
844,801
642,034
Finance costs
9
(213,141)
(103,010)
Profit before taxation
631,660
539,024
Tax on profit
10
(335,872)
(153,785)
Profit for the financial year
295,788
385,239

The income statement has been prepared on the basis that all operations are continuing operations.

GUESS U.K. LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 3 FEBRUARY 2024
03 February 2024
- 14 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
3,073,220
3,487,062
Current assets
Inventories
12
3,122,952
3,550,242
Trade and other receivables
13
5,838,842
3,978,059
Cash and cash equivalents
721,023
805,093
9,682,817
8,333,394
Current liabilities
14
(9,683,470)
(9,043,677)
Net current liabilities
(653)
(710,283)
Net assets
3,072,567
2,776,779
Equity
Called up share capital
18
4,594,515
4,594,515
Retained earnings
(1,521,948)
(1,817,736)
Total equity
3,072,567
2,776,779

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 21 February 2025 and are signed on its behalf by:
Mr W Ramos
Director
Company registration number 05304239 (England and Wales)
GUESS U.K. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 15 -
Share capital
Retained earnings
Total
£
£
£
Balance at 30 January 2022
4,594,515
(2,202,975)
2,391,540
Year ended 28 January 2023:
Profit and total comprehensive income
-
385,239
385,239
Balance at 28 January 2023
4,594,515
(1,817,736)
2,776,779
Year ended 3 February 2024:
Profit and total comprehensive income
-
295,788
295,788
Balance at 3 February 2024
4,594,515
(1,521,948)
3,072,567
GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 16 -
1
Accounting policies
Company information

Guess U.K. Limited (the "company" or "GUESS") distributes a leading lifestyle collection of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. The products are sold through direct-to-consumer distribution channels in the UK.

 

The company operates on a 52/53-week fiscal year calendar, which ends on the Saturday nearest to 31 January of each year. All references herein to 2024, 2023 and 2022 represent the 52-week fiscal year ended 3 February 2024, 28 January 2023, or 29 January 2022.

 

The company is a private company limited by shares and is incorporated and domiciled in England and Wales. The registered office is The Courtyard, River Way, Uckfield, East Sussex, TN22 1SL.

 

Statement of compliance

The individual financial statements of Guess U.K. Limited have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006.

1.1
Accounting convention

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

 

Basis of Preparation

These financial statements are prepared on a going concern basis under the historical cost convention.

 

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgements in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 2.

Exemptions for qualifying entities under FRS 102

The company has taken advantage of the exemptions, under FRS 102 paragraph 1.12, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.2
Going concern

The financial statement have been prepare on a going concern basis. The directors have prepared a going concern assessment covering the 12 months from the date of signing these financial statements, which demonstrates that the company is capable of continuing to operate during the period. The directors' assessment considers the principal risk facing the business, and a series of financial forecasts, which include a review of current performance and forecasts of revenue across all sales channels combined with ongoing expenditure including capital expenditure. The forecast has been prepared whilst considering various levels of disruption from the Covid-19 pandemic. The directors have concluded that it is appropriate to adopt the going concern basis of accounting in preparing these financial statements for the reasons set out below:true

 

The company acted quickly to mitigate the impact of Covid-19 by taking steps to strengthen its balance sheet resulting in the company entering a Company Voluntary Arrangement on 8th December 2020, including 13 stores out of a total of 18 stores currently opened in the UK. The CVA allowed the company to reduce the rent costs significantly, starting from March 2020 until the end of the period in 2023, and the level of debt owed to group companies.

 

Considering this the company continues to meet its day to day working capital requirements through loans from its associated group companies and cash pooling facilities. After making enquiries and receiving confirmation of continued support from group companies in particular for the supply of key inventories, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

 

As a result of the above analysis, the directors have concluded that the company has sufficient financial resources to continue in operation and meet its obligations as they fall due for the 12 months from the date of approval of these financial statements.

1.3
Revenue

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods and services rendered, net of returns, discounts and rebates allowed by the company and value added taxes.

 

Where the consideration receivable in cash and cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest.

 

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to the company's sales channel has been met, as described below.

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -

(i) Sale of goods - retail

The company operates retail shops for the sale of apparel, accessories and certain related products. Sale of goods are recognised on sale to the customer, which is considered the point of delivery. Retail sales are usually in cash, credit or payment card.

 

Sales are made to retail customers with a right to return within 28 days, subject to certain conditions regarding usage. Accumulated experience is used to estimate and provide for such returns at the time of sale.

 

(ii) Sale of goods - wholesale

The company acquires and sells a range of apparel and accessories for men and women to the retail market. Sales of goods are recognised on delivery to the retailer, when the retailer has full discretion over the channel and price to sell the product and there is no unfulfilled obligation that could affect the retailer's acceptance of the product. Delivery occurs when the goods have been shipped to the location specified by the retailer, the risk of obsolescence or loss have been transferred to the retailer, the retailer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed or the company has objective evidence that all criteria for acceptance have been satisfied.

 

(iii) Sale of goods - internet based transactions

The company sells goods via third party websites for delivery to the customer. Revenue is recognised when the risks and rewards of the inventory is passed to the customer. For deliveries to the customer this is the point of acceptance of the goods by the customer.

 

Provision is made for credit notes based on the expected level of returns which is based on the historical experience of returns.

 

Goods sold to retailers are often sold with the provision that the retail customer can return faulty goods in line with the retailers terms of business. Sales are measured at the prices specified in the sales contract net of estimated returns.

1.4
Property, plant and equipment

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

 

(i) Land and buildings

Land and buildings include leasehold retail outlets and offices. Land and buildings are stated at cost less accumulated depreciation and accumulated impairment losses. The company has not-adopted the transition exemption under FRS 102 paragraph 35.10(d).

 

(ii)Plant and machinery and fixtures, fittings and equipment

Plant and machinery and fixtures, fittings and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.

 

(iii) Depreciation and residual values

Tangible fixed assets are stated at cost less depreciation and some capital contributions. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as per the following table.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

Land and buildings leasehold
straight line over the period of the lease
Fixtures, fittings & equipment
20% straight line
GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -

(iv) Subsequent additions and major components

Subsequent costs, including major inspections, are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefit associated with the item will flow to the company and the cost can be measured reliably.

 

The carrying amount of any replacement component is derecognised. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.

 

(v) Assets in the course of construction

Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use.

(vi) Derecognition

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the profit and loss and included in 'Other operating (losses)/gains'.

1.5
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Generally, each store is considered to be a separate cash-generating unit.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Inventories are recognised as an expense in the period in which the related revenue is recognised.

Cost is determined on the first-in, first-out basis (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bring the inventory to its present location and conditions.

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 20 -

At the end of each reporting period inventories are assessed for impairment. If an item of inventory is impaired, the identified inventory is reduced to its selling price less cost to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

 

Current and deferred taxation assets and liabilities are not discounted.

Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Deferred tax

Deferred tax arises from timing difference that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

 

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

1.11
Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans.

 

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
1
Accounting policies
(Continued)
- 23 -
1.12
Retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

(i) Functional and presentational currency

The company's functional and presentation currency is the pound sterling.

 

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

 

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transactions. Non-monetary items measured at fair value are translated using the exchange rate when fair value was determined.

 

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account except when deferred in other comprehensive income as qualifying cash flow hedges.

 

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance (expenses)/income'. All other foreign exchange gains and losses are presented in the profit and loss account within 'Other operating (losses)/gains'.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying value of property, plant and equipment and note 1.4 for the useful economic lives for each class of asset.

Inventory provisioning

Inventory is subject to obsolescence, damage, loss, etc. When calculating the inventory provision, management consider the nature and condition of inventory relating to closing inventory which is reviewed annually. The movements in the inventory provision is calculated by reference to the stock losses over sales applied to the gross closing stock. See note 12 for the net carrying amount of the inventory and associated provision.

3
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Retail sale of goods
20,966,108
20,394,878
Wholesale sale of goods
2,861,525
5,343,693
E-commerce sale of goods
523,167
252,322
24,350,800
25,990,893
2024
2023
£
£
Other revenue
Commissions received
95,581
5,351
4
Exceptional item
2024
2023
£
£
Income
Exceptional item - Other operating income
8,246
(121,822)

On the 8th December 2020 the company entered into a Company Voluntary Agreement (CVA). A key component of this was to write down amounts due from real estate suppliers and group companies. The above represents the support arising in the period as a result of the CVA. The reversal in the current year is an estimate of dividends due back to the impacted suppliers.

 

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 25 -
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(9,622)
63,777
Depreciation of owned property, plant and equipment
930,258
1,031,434
Loss on disposal of property, plant and equipment
397,631
-
Operating lease charges
4,695,403
4,472,516
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
32,335
31,790
For other services
Taxation compliance services
17,920
23,025
All other non-audit services
9,925
8,910
27,845
31,935
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management and administrative
10
9
Retail
276
281
Total
286
290

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,687,705
4,356,185
Social security costs
313,696
286,509
Pension costs
58,426
48,912
5,059,827
4,691,606
GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 26 -
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
206,650
213,967
Company pension contributions to defined contribution schemes
1,321
1,321
207,971
215,288

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

The number of directors who are entitled to receive shares under long term incentive schemes during the year was 1 (2023 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
206,650
213,967
Company pension contributions to defined contribution schemes
1,321
1,321
9
Finance costs
2024
2023
£
£
Interest payable to group undertakings
213,141
100,079
Other interest
-
0
2,931
213,141
103,010
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
393,400
102,556
Deferred tax
Origination and reversal of timing differences
(57,528)
51,229
Total tax charge
335,872
153,785

The U.K. Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom would increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is the new small profits rate. Where taxable profits exceed £250,000 the higher tax rate of 25% will apply. Where taxable profits are between £50,000 and £250,000, a marginal tax rate will apply as profits increase. These tax bands will be reduce dependent upon the number of associated companies form a group for tax purposes.

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
10
Taxation
(Continued)
- 27 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
631,660
539,024
Expected tax charge based on the standard rate of corporation tax in the UK of 24.00% (2023: 19.00%)
151,598
102,415
Tax effect of expenses that are not deductible in determining taxable profit
51,394
13,343
Tax effect of income not taxable in determining taxable profit
-
0
23,146
Depreciation on assets not qualifying for tax allowances
189,915
(36,348)
Deferred tax adjustments in respect of prior years
(57,528)
51,229
Tax at marginal rate
493
-
0
Taxation charge for the year
335,872
153,785
11
Property, plant and equipment
Land and buildings leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 29 January 2023
5,870,466
6,013,345
11,883,811
Additions
1,027,469
332,576
1,360,045
Disposals
(1,622,279)
(999,480)
(2,621,759)
At 3 February 2024
5,275,656
5,346,441
10,622,097
Depreciation and impairment
At 29 January 2023
3,614,227
4,782,522
8,396,749
Depreciation charged in the year
448,438
481,820
930,258
Eliminated in respect of disposals
(849,497)
(928,633)
(1,778,130)
At 3 February 2024
3,213,168
4,335,709
7,548,877
Carrying amount
At 3 February 2024
2,062,488
1,010,732
3,073,220
At 28 January 2023
2,256,239
1,230,823
3,487,062

The carrying value of land and buildings comprises:

2024
2023
£
£
Short leasehold
2,311,545
2,256,239
GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 28 -
12
Inventories
2024
2023
£
£
Finished goods and goods for resale
3,122,952
3,550,242

Inventories are stated after provision for impairment of £15,694 (2023: £14,996).

13
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
1,476,232
1,595,835
Amounts owed by group undertakings
2,239,016
635,057
Other receivables
934,501
923,435
Prepayments and accrued income
1,126,803
818,970
5,776,552
3,973,297
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
62,290
4,762
Total debtors
5,838,842
3,978,059

Trade receivables are stated after provision for impairment of £325,023 (2023: £107,519).

Amounts owed by group undertakings are unsecured, have no fixed repayment date and where included within one year are interest free and repayable on demand.

Amounts owed by group undertakings are unsecured, have no fixed repayment date and where included within one year are interest free and repayable on demand.

14
Current liabilities
2024
2023
Notes
£
£
Other borrowings
15
3,000,000
3,000,000
Trade payables
2,538,828
3,267,410
Amounts owed to group undertakings
64,730
1,586,024
Corporation tax
501,551
219,303
Other taxation and social security
640,310
701,948
Other payables
132,800
127,999
Accruals and deferred income
2,805,251
140,993
9,683,470
9,043,677
GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 29 -
15
Borrowings
2024
2023
£
£
Loans from group undertakings
3,000,000
3,000,000
Payable within one year
3,000,000
3,000,000
16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2024
2023
Balances:
£
£
ACAs
(20,326)
(24,343)
Provisions
77,916
23,522
Pension contributions
4,700
5,583
62,290
4,762
2024
Movements in the year:
£
Asset at 29 January 2023
(4,762)
Credit to profit or loss
(57,528)
Asset at 3 February 2024
(62,290)
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
58,426
48,912

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
- 30 -
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
Ordinary €1 shares of 82.04489p each
5,600,000
5,600,000
4,594,514
4,594,514
5,600,001
5,600,001
4,594,515
4,594,515

Ordinary £1 and €1 shares have full and equal rights to participate in voting in all circumstances and in dividends and capital distributions, whether on a winding up or otherwise and are not redeemable.

19
Financial commitments, guarantees and contingent liabilities

The company entered into a CVA on 8 December 2020, included in the agreement are clauses on the impact of failure to comply with its obligations. Should the company fail, or the CVA is terminated for another reason, then the terms of the CVA shall be deemed to never to have happened and the Creditors shall have the claims against the company that they would have had if the CVA had never been approved. Should this happen, as at the reporting date, the income included in Exceptional Income would have been reclassified to liabilities as due back to the Creditors and there would be an uplift to minimum obligations under finance leases in 1 year and 2 - 5 years. The CVA ended on 12 October 2023.

20
Operating lease commitments
Lessee

The operating leases represent leases of stores and offices to third parties. The leases are negotiated over terms of five to fifteen years and rentals are fixed for three to five years. Most leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
2,539,127
3,492,557
Between two and five years
5,388,568
7,455,195
In over five years
345,000
817,500
8,272,695
11,765,252
21
Related party transactions

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
64,730
1,586,024
GUESS U.K. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 3 FEBRUARY 2024
21
Related party transactions
(Continued)
- 31 -

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
2,239,016
635,057
Other information

Guarantees received

The ultimate parent company is a guarantor on premises lease agreements.

Remuneration of key management personnel

The company has taken advantage of the exemption under paragraph 1.12(e) of FRS 102 from the requirement to disclose the total of key management personnel compensation.

 

Transactions with related parties

The company has taken advantage of the exemption under paragraph 33.1A of FRS 102 not to disclose transactions entered into between two or more members of a group where the subsidiary which is party to the transaction is wholly owned by the other party.

 

At the period end the balance owed from and to group companies are as detailed above and the group companies concerned are Guess? Inc. and Guess? Europe Sagl.

22
Ultimate controlling party

The immediate parent undertaking is Guess? Europe B.V., a company registered in the Netherlands and the smallest group to consolidate these financial statements. The ultimate parent company is Guess? Inc., a company registered in the USA.

 

Guess? Inc. is the largest group to consolidate these financial statements and copies of the Guess? Inc. consolidated financial statements can be obtained from 1444 South Alameda Street, Los Angeles, CA 90021, United States.

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