Why Guess Is Thursday’s Biggest Winner
After Guess released its fiscal fourth-quarter earnings report late on Wednesday, shares were up sharply on Thursday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
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.
[nativounit]
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.
[recirclink id=450838]
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
