Guess (GES) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Guess? (NYSE:GES) shares surged more than 25% after the fashion brand announced it had received a go-private buyout offer from WHP Global at $13 per share. The offer represents a 34% premium to the closing price of Guess?
Guess?, Inc. is undervalued with a near 13% dividend yield, offering a compelling opportunity for value investors despite market pessimism and recent earnings misses. The company has a balanced capital allocation strategy, prioritizing debt repayment over dividends and buybacks, indicating financial prudence. Despite a volatile stock and a significant price drop, GES remains an enduring brand with stable shareholder yield and potential for multiple expansion.
Guess?, Inc.'s US retail performance is weakening as the company's brand image seems to be deteriorating. The brand remains healthy in Guess's larger European market, and further, licensing and Americas wholesale still generate healthy earnings, stabilizing Guess's outlook. Guess could have a weak short-term outlook due to consumer weakness, causing slight concern for the upcoming Q4 report.
GES is facing pressure from value-conscious consumers, particularly in North America and Asia. Cost inflation and currency headwinds are also concerning.
[Note: Guess' FY'24 ended on Feb 3, 2024]
Guess? is struggling with its financial performance due to challenges like a complex consumer environment and escalated freight costs.
Guess?, Inc. (GES) Q3 2025 Earnings Call Transcript
GES' third-quarter results reflect top-line growth from the rag & bone buyout, and core business. It lowers the fiscal 2025 view due to currency fluctuations and freight costs.
Guess shares have underperformed, dropping 20% in the past year and another 10% after disappointing Q3 results, highlighting ongoing struggles in the US and Asia. Despite strong European sales, Guess faces margin pressure due to high inventories and markdowns, leading to a reduced operating margin and earnings. Management's repeated guidance cuts and over-ordering issues indicate a lack of control over business dynamics, raising concerns about future performance.
Guess (GES) came out with quarterly earnings of $0.34 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.49 per share a year ago.
GES' Q3 results are likely to reflect gains from brand strength and the rag & bone buyout amid a dynamic consumer landscape and high operating costs.