Guess Intrinsic Value Calculation – GUESS Reports Lower-Than-Expected Earnings and Revenue

🌥️Trending News

GUESS ($NYSE:GES), a leading global lifestyle brand known for its trendsetting denim and apparel, recently released its earnings report for the latest quarter. Unfortunately, the report came with some disappointing news. Non-GAAP EPS of $0.49 fell short of market expectations by $0.12, while revenue of $651M was lower than the predicted amount by $4.58M. This news sent the company’s shares tumbling as analysts pointed to weaker-than-expected demand for the company’s products in its most important markets. Despite these lower-than-expected results, many analysts remain optimistic about the future of the company, given its strong brand recognition and reputation for innovative designs.

The company has already begun taking steps to address the issues raised in the report. This includes a new marketing campaign designed to attract customers and boost sales, as well as new product lines aimed at increasing sales in key markets. It remains to be seen if these measures will be enough to turn the company’s fortunes around and return it to profitability.

Earnings

GUESS recently reported its earnings for the fiscal year 2024 Q2 ending on July 31, 2021. The company earned 628.62M USD in total revenue and 61.06M USD in net income. Although this is a substantial amount of money, it is still 2.2% lower than the total revenue recorded the previous year.

On the other hand, the net income of GUESS saw a 154.8% increase from the previous year. Over the last 3 years, GUESS’s total revenue has increased modestly from 628.62M USD to 664.51M USD.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Guess. GUESS_Reports_Lower-Than-Expected_Earnings_and_Revenue”>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Guess. GUESS_Reports_Lower-Than-Expected_Earnings_and_Revenue”>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Guess. GUESS_Reports_Lower-Than-Expected_Earnings_and_Revenue”>More…

Key Ratios Snapshot

Some of the financial key ratios for Guess are shown below. GUESS_Reports_Lower-Than-Expected_Earnings_and_Revenue”>More…

Stock Price

On Tuesday, GUESS reported lower-than-expected earnings and revenue for the quarter ending April 30. The company’s stock opened at $23.9 and closed at $23.7, a decrease of 1.7% from its last closing price of $24.1. This news sent the stock plunging as investors worried that the company’s performance was not up to par. The company’s underwhelming results were attributed to higher shipping costs, slower sales, and a decrease in foot traffic in stores.

Although the company had taken steps to decrease costs, the efforts were not enough to offset the losses incurred. Going forward, the company plans on increasing its digital presence to attract more customers and focus on cost containment in order to drive profits. Live Quote…

Analysis – Guess Intrinsic Value Calculation

GoodWhale has conducted a financial analysis of GUESS Inc. Our proprietary Valuation Line determines the fair value of a GUESS share to be approximately $30.3. This stands in stark contrast to its current market price which is $23.7, indicating that the stock is undervalued by 21.9%. This makes it an extremely attractive opportunity for investors, especially in the current market environment. The strength of our Valuation Line lies in its ability to accurately assess the performance of a company by taking into account various quantitative and qualitative factors. We believe that the stock is currently undervalued due to the market’s short-term view of the company’s financial performance. In the long-term, however, we expect GUESS to be a strong investment with good returns, based on our analysis. We recommend that investors consider taking advantage of the current discounted price in order to reap higher returns in the future. More…

Peers

Guess? Inc is a leading international lifestyle brand known for its iconic denim and fashion apparel. Along with Guess?, other popular lifestyle brands such as Esprit Holdings Ltd, TOM TAILOR Holding SE, and Brunello Cucinelli SpA have made a mark in the fashion industry, offering a wide range of high-quality products to customers around the world.

– Esprit Holdings Ltd ($SEHK:00330)

Esprit Holdings Ltd is a global fashion lifestyle company that designs, develops, and sells clothing, accessories, and home furnishings. The company has a market cap of 2.38 billion as of 2022, indicating its size and market presence. Additionally, Esprit Holdings Ltd has a Return on Equity (ROE) of 3.21%, which is a measure of the company’s profitability and efficiency in using equity to generate profits. This shows that the company is capable of generating returns on its equity holdings, indicating that it is well-managed and financially sound.

– TOM TAILOR Holding SE ($LTS:0MMJ)

TOM TAILOR Holding SE is a German-based fashion company that designs and sells apparel, footwear, and accessories for men, women, and children. The company has a market cap of 5M as of 2022 and a negative return on equity of -507.22%, indicating that the company has not been very successful in generating profits from investments. This can be attributed to the company’s inability to keep up with current fashion trends, as well as its lack of focus on marketing and promotion. Despite this, the company has still managed to remain successful in the industry, as it has managed to steadily increase its sales over the past few years.

– Brunello Cucinelli SpA ($LTS:0Q7S)

Brunello Cucinelli SpA is an Italian luxury fashion house based in Solomeo, Italy. Founded in 1978, the company specializes in producing and selling garments, cashmere knitwear, leather goods, and accessories. As of 2022, the company has a market cap of 4.74 billion and a Return on Equity of 23.98%. The company has grown significantly since its founding and has seen a steady increase in its market cap over the years. Its Return on Equity indicates that it is performing well relative to its peers in the industry.

Summary

Investors should carefully analyze the performance of GUESS after the release of its latest quarterly results. Investors should consider this data and future prospects before making any investment decisions.