Retail

Why Guess Is Another Retailer Bucking the COVID-19 Trend

Guess Inc. (NYSE: GES) reported its fiscal second-quarter financial results before the markets opened on Wednesday. The retailer said that it had a net loss of $0.01 per share and $398.5 million in revenue, while consensus estimates had called for a net loss of $0.57 per share and $384.82 million. In the same period of last year, the apparel maker and retailer said it had $0.38 in earnings per share (EPS) on $683.2 million in revenue.

During this past quarter, the company saw revenues decrease about 42% year over year. At the same time, management noted that it increased product margins, ended the period with inventories down 13% compared to last year and finished the quarter with a strong balance sheet and ample liquidity.

In terms of its segments, the company reported as follows:

  • Americas Retail revenues decreased 44.7% in U.S. dollars to $110.1 million and 44.1% in constant currency.
  • Americas Wholesale revenues decreased 51.6% to $20.3 million and 48.7% in constant currency.
  • Europe revenues decreased 39.5% to $205.9 million and 39.6% in constant currency.
  • Asia revenues decreased 39.7% to $50.2 million and 38.7% in constant currency.
  • Licensing revenues decreased 34.5% to $12.1 million.

Considering the ongoing COVID-19 pandemic, the company has decided not to issue any guidance. However, analysts are calling for $0.05 in EPS and $570.9 million in the fiscal third quarter. Looking even further out, analysts forecast a net loss of $1.15 per share and $2.06 billion for the fiscal year.

On the books, the company ended the quarter with cash and cash equivalents of $327.97 million, up from $284.61 million at the end of the previous fiscal year.

Guess stock traded up more than 14% early Wednesday to $13.74, in a 52-week range of $3.64 to $23.58. The consensus price target is $12.20.

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.