Why Guess Is Thursday’s Biggest Winner

By Chris Lange Updated Jan 12, 2:10AM EST · Published Mar 22, 12:45PM EDT

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Why Guess Is Thursday’s Biggest Winner — © Thinkstock

When Guess? Inc. (NYSE: GES) released its fiscal fourth-quarter earnings report after the markets closed on Wednesday, the retailer said that it had $ 0.62 in earnings per share (EPS) on $792.2 million in revenue. Consensus estimates had called for $0.54 in EPS on $756 million in revenue. The same period of last year reportedly had EPS of $0.43 and $674.0 million in revenue.

During the quarter, Americas Retail revenues decreased 6.1% in U.S. dollars and 7.2% in constant currency. Retail comp sales including e-commerce decreased 4% in U.S. dollars and 5% in constant currency. Wholesale revenues increased 3.8% in U.S. dollars and 0.9% in constant currency.

In terms of its segments, Guess reported as follows:

Americas Retail revenues decreased 6% year over year to $271.17 million.
Americas Wholesale revenues increased 4% to $36.2 million.
Europe revenues increased 40% to $356.8 million.
Asia revenues increased 40% to $108.5 million.
Licensing revenues increased 11% to $19.5 million.

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Looking ahead to the fiscal first quarter, the company expects to see a net loss of $0.27 to $0.24 per share and revenues rising in the range of 11.0% to 12.5%. The consensus estimates call for a net loss of $0.20 per share on $477.65 million in revenue.

On the books, Guess cash and cash equivalents totaled $367.4 million at the end of the quarter, down from $396.1 million in the same period of last year.

Victor Herrero, Guess CEO, commented:

I am pleased to report that the overall results of the fourth quarter finished above the high-end of our expectations, with higher sales, higher adjusted operating profit and higher adjusted earnings per share. This quarter concludes a year where we saw revenue increase, operating profit growth, adjusted operating margin expansion and adjusted EPS growth of 52%. I believe that this year marks the beginning of a turnaround for the Company.

Shares of Guess were last seen up 27% at $19.77 on Thursday. The consensus analyst price target is $16.60, and the 52-week trading range is $9.56 to $19.97.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.