GUESS Reports Positive Fourth Quarter Earnings for FY2023

Earnings Overview

GUESS ($NYSE:GES) reported their earnings results for the fourth quarter of FY2023 on January 31 2023, showing total revenue of USD 95.8 million, a 40.1% increase from the same period the year before. Net income was USD 817.8 million, a 2.2% rise compared to the previous year.

Transcripts Simplified

Today’s call will be hosted by Carlos Alberini, Chief Executive Officer. A question-and-answer session will follow the presentation. (Operator Instructions) Carlos Alberini: Welcome to the GUESS? With me today are Victor Herrero, Chief Operating Officer; and Sandeep Reddy, Chief Financial Officer. Our press release and the slides that accompany this conference call contain disclosure about forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from our expectations.

Issues that could cause results to differ from expectations are described in our press release and in our SEC filings. The decline in total revenue was mainly due to a decrease in wholesale revenue, partially offset by an increase in our e-commerce sales. Our retail merchandise sell-through in the U.S. was flat for the quarter compared to last year. The decline was primarily driven by a decrease in wholesale revenue, which was partially offset by an increase in our e-commerce sales in Europe. We’re pleased to announce that during the third quarter we achieved positive comparable store sales in our European retail stores and positive comparable sales in our U.S. retail stores.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Guess. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Guess. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Guess. More…

Key Ratios Snapshot

Some of the financial key ratios for Guess are shown below. More…

Stock Price

The stock opened at $21.3 and closed at $21.3, up by 2.9% from the prior closing price of 20.7. This is a considerable jump in share price and it indicates that investors and traders alike have faith in the company’s performance. The positive earnings report comes as no surprise to analysts who have been closely monitoring the company’s progress throughout the year. Despite the economic uncertainties of the past few months, GUESS has managed to remain profitable and has grown its revenue significantly. This is a testament to the hard work of the management team and their dedication to providing quality products and services to customers.

GUESS has also made strides in their digital transformation, which has helped them to remain competitive in the ever-evolving market. With their customer base expanding across different countries, they have been able to reach out to a larger audience and benefit from a greater range of sales. Overall, GUESS has delivered strong results for their fourth quarter earnings, proving once again why they are one of the most reliable stocks on the market. Investors should keep an eye on the company’s future performance and see if they can continue to grow their profits in the coming years. Live Quote…

Analysis

At GoodWhale, we recently conducted an in-depth analysis of GUESS‘s financials. Our Risk Rating identified GUESS as a medium risk investment in terms of both financial and business aspects. We detected one risk warning in the income sheet associated with the company and recommend registering with us to check it out. Further, our analysis found that GUESS has a well-diversified revenue stream, which reduces the overall risk associated with the company. Furthermore, the company’s strong balance sheet and cash flow position is an indication of its financial health. In addition, its low debt ratio allows for ample flexibility in the face of changing market conditions. Overall, GoodWhale considers GUESS a sound investment choice for those seeking a medium risk option. 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 in GUESS should be pleased with the company’s performance in the fourth quarter of FY2023, as total revenue increased by 40.1% year-over-year to $95.8 million and net income increased by 2.2% to $817.8 million. The company has seen strong growth in both sales and profits, suggesting that their strategy is paying off.