Retail
Why Guess Is Another Retailer Bucking the COVID-19 Trend
September 2, 2020 10:03 am
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:
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.
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