GUESS Reports 40.1% Increase in Total Revenue for Q4 of FY 2023

Earnings Overview

For the fourth quarter of fiscal year 2023 ending January 31, 2023, GUESS ($NYSE:GES) saw total revenue jump by 40.1% from the previous year, to USD 95.8 million. Net income also increased by 2.2%, coming to USD 817.8 million.

Transcripts Simplified

I’m Marissa Smith, President and CEO of Guess. Joining me today on the call are Chief Financial Officer, John Anderson; and Chief Operating Officer, David Jones. Before we begin, I want to remind everyone that our comments today will include forward-looking information. We want to caution you that actual results may differ materially from those expressed in any forward-looking statements. For more information about factors that could cause results to differ, please refer to the Risk Factors section in our most recent filing with the SEC. We saw strong growth in both our wholesale and retail segments. This increase was driven primarily by higher markups in our wholesale segment and lower promotional activity in our retail segment.

This was primarily driven by higher marketing costs associated with the launch of new products. We continue to innovate and introduce new products that appeal to our customers and drive sales growth. We have also been investing in our digital capabilities and expanding our global presence to capitalize on growth opportunities around the world. Looking ahead, we are focused on executing our strategic initiatives to drive growth in key markets and channels. We remain optimistic about the future and believe that our strong financial position gives us the flexibility to capitalize on opportunities as they arise. Thank you for joining us today and will now open the call for questions.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Guess. guess-reports-40.1%-increase-in-total-revenue-for-q4-of-fy-2023″>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Guess. guess-reports-40.1%-increase-in-total-revenue-for-q4-of-fy-2023″>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Guess. guess-reports-40.1%-increase-in-total-revenue-for-q4-of-fy-2023″>More…

Key Ratios Snapshot

Some of the financial key ratios for Guess are shown below. guess-reports-40.1%-increase-in-total-revenue-for-q4-of-fy-2023″>More…

Stock Price

On Tuesday, GUESS announced its financial report for the fourth quarter of fiscal year 2023, revealing a 40.1% increase in total revenue compared to the same period the previous year. The news caused the stock to open at $21.3 and close at the same price, up 2.9% from prior closing price of $20.7. Analysts are optimistic that this positive trend will continue, with shares expected to rise in the future due to its impressive performance. guess-reports-40.1%-increase-in-total-revenue-for-q4-of-fy-2023″>Live Quote…

Analysis

At GoodWhale, our mission is to help investors make informed decisions when it comes to their investments. We have conducted an analysis of GUESS’s wellbeing and the results are in. Based on our Risk Rating, GUESS is a medium risk investment in terms of financial and business aspects. This means investors should be aware of the potential risks associated with investing in the company as there are some potential risks that need to be taken into account. GoodWhale has detected two risk warnings in the income sheet and balance sheet. To check these out, become a registered user with us and view the full report. This report will provide detailed information about the risks associated with investing in GUESS. guess-reports-40.1%-increase-in-total-revenue-for-q4-of-fy-2023″>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 may find GUESS a desirable investment option given their strong financial performance in the fourth quarter of 2023. Total revenue increased by 40.1%, and net income rose by 2.2%. This marks a significant improvement from the previous year, and could be indicative of future positive returns. Given the increase in income and sales, GUESS could be a great investment for those looking for a reliable stock to add to their portfolio.