GUESS Reports 26.9% Decrease in Revenue and 1.5% Decrease in Net Income for FY2023 Q3
December 27, 2022
Earnings report
On November 22, 2022, GUESS ($NYSE:GES) Inc. (NYSE: GES) reported earnings results for FY2023 Q3 as of October 31, 2022. The company is a global lifestyle brand that designs, markets, distributes, and licenses apparel, accessories, footwear, and personal care products. For the third quarter, the company achieved total revenue of USD 21.8 million, down 26.9% year over year. Net income was USD 633.4 million, down 1.5% year over year.
Overall, GUESS reported a decrease in revenue and net income for FY2023 Q3 compared to the prior year period. The company is continuing to focus on cost savings initiatives and drive sales through digital channels to overcome the effects of the pandemic on its business.
Share Price
On Tuesday, GUESS announced that their revenue for the third quarter of FY2023 had decreased by 26.9% compared to the same quarter in the previous year. Similarly, their net income had decreased by 1.5%. Following the news, the company’s stock opened at $20.1 and closed at $19.8, up by 1.5% from the previous closing price of 19.5. The company has also seen an increase in operational costs and expenses due to the pandemic, leading to a further decrease in their net income. Despite the decrease in revenue and net income, GUESS remains confident in their ability to weather the storm and continue to successfully operate their business.
They have implemented measures such as cost-cutting initiatives, increased reliance on digital platforms, and improved store productivity to help mitigate the negative effects of the pandemic. The company has also recently launched new marketing initiatives that have helped to drive customer engagement and revive sales. Looking forward, GUESS is hopeful that they can continue to capitalize on these initiatives to recover their losses and return to profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Guess. More…
| Total Revenues | Net Income | Net Margin |
| 2.67k | 121.47 | 4.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Guess. More…
| Operations | Investing | Financing |
| 105.64 | -93.87 | -200.33 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Guess. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.32k | 1.86k | 7.55 |
Key Ratios Snapshot
Some of the financial key ratios for Guess are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.0% | 31.2% | 8.0% |
| FCF Margin | ROE | ROA |
| 3.1% | 32.1% | 5.7% |
VI Analysis
GUESS is a company that has potential for long-term success, and its current fundamentals reflect this. VI App, a financial analysis tool, provides a simple assessment of the company. According to its Risk Rating, GUESS is considered to be a medium-level risk investment. This encompasses both financial and business risks, although there is one warning detected in the income sheet that registered users can view. In general, medium-level risk investments are those that have potential for growth, but also come with potential risks. Investors must weigh these risks against the potential returns before committing funds. The financial and business risks for GUESS can be further evaluated by conducting additional research and analysis. It is important to note that the risk rating provided by VI App is not a guarantee of future performance. The rating is only an indication of the current financial and business risks associated with the company. Investors should also consider their own risk tolerance and other factors before making an investment decision. More…
VI 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
Investing in GUESS remains a risky proposition despite their third quarter earnings results. Total revenue for the quarter was down 26.9% year over year, and net income was down 1.5%. This suggests that the company is struggling to maintain its profitability despite its current financial situation. As a result, investors should be wary when considering investing in GUESS as the company may not be able to sustain growth in the long run.
Additionally, investors should closely monitor the company’s financials and future earnings results to ensure they are making a sound investment decision.
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