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Guess? is supporting business growth via investments in marketing new stores and infrastructure. Challenges stemming from a weaker consumer environment is a concern.
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
Guess's Q2 2024 results show top-line growth but suffer from declining comparable retail sales and shrinking margins due to increased marketing investments. Despite challenges in the Americas, Europe's modest growth and strong wholesale environment provide some optimism, though product issues remain a concern. Given the uncertain future and potential management concerns, I am downgrading Guess to a Hold and moving it to the "too hard" pile.
GES' fiscal Q2 results showcase lower earnings on higher marketing spend. Management lowers fiscal 2025 outlook on weaker consumer environment.
Guess?, Inc. (NYSE:GES ) Q2 2025 Earnings Conference Call August 28, 2024 8:30 AM ET Company Participants Fabrice Benarouche - Senior Vice President of Finance, Investor Relations and Chief Accounting Officer Carlos Alberini - Chief Executive Officer Dennis Secor - Interim Chief Financial Officer Conference Call Participants Dana Telsey - Telsey Advisory Group Corey Tarlowe - Jefferies Eric Beder - Small Cap Consumer Research Mauricio Serna - UBS Operator Good day, everyone, and welcome to the Guess? Second Quarter Fiscal 2025 Earnings Conference Call.
Guess (GES) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.72 per share a year ago.
Guess, a retailer that designs, markets, distributes, and licenses apparel and accessories for men, women, and children, is scheduled to report its fiscal Q2 2025 results on Wednesday, August 28. (Guess' FY'24 ended on Feb 3, 2024.
Guess?' (GES) Q2 performance is likely to reflect gains from robust brand momentum globally. However, a volatile shopping environment poses a threat.
Guess? (GES) is capitalizing on strong global brand momentum and positive customer feedback. However, a volatile global shopping environment poses a challenge.
Guess has evolved from a mall-based retailer to an international brand with a focus on returning value to shareholders. The company faces risks from global market uncertainties, competitive industry, and reliance on shopping malls for sales. Guess offers a reasonable dividend yield, solid earnings, and potential for growth, making it a potential value play for investors.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.