Retail

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.

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.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.