Guess Stock Fair Value – GUESS Reports Earnings for First Quarter of FY2024, Ending May 24 2023
May 31, 2023
🌥️Earnings Overview
GUESS ($NYSE:GES) reported their FY2024 first quarter earnings results on April 30, 2023, for the period ending May 24, 2023. The company’s total revenue for the quarter was USD 569.8 million, a 4.0% decrease compared to the same period last year. Their reported net income was USD -11.8 million, a decrease from the 8.0 million they earned the previous year.
Price History
On Wednesday, GUESS reported their earnings for the first quarter of FY2024, ending on May 24 2023. The stock opened at $18.2 and closed at $17.4, reflecting a 0.8% decline from the previous closing price of 17.5. The earnings report showed that the company had experienced a decrease in sales compared to the same quarter last year, despite the fact that the overall industry had seen an increase in sales. Furthermore, profits had decreased due to an increase in overhead costs and investment spending.
Despite these results, the company remains cautiously optimistic about the future and expects to see improved performance in the upcoming quarters. It is evident from these results that GUESS is taking the necessary steps to ensure their long-term success, and investors should keep an eye on the company as it looks to capitalize on positive market trends in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Guess. GUESS_Reports_Earnings_for_First_Quarter_of_FY2024_Ending_May_24_2023″>More…
| Total Revenues | Net Income | Net Margin |
| 2.66k | 128.49 | 5.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Guess. GUESS_Reports_Earnings_for_First_Quarter_of_FY2024_Ending_May_24_2023″>More…
| Operations | Investing | Financing |
| 211.1 | -78.06 | 12.91 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Guess. GUESS_Reports_Earnings_for_First_Quarter_of_FY2024_Ending_May_24_2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.44k | 1.94k | 8.12 |
Key Ratios Snapshot
Some of the financial key ratios for Guess are shown below. GUESS_Reports_Earnings_for_First_Quarter_of_FY2024_Ending_May_24_2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.5% | 50.5% | 6.8% |
| FCF Margin | ROE | ROA |
| 5.6% | 23.1% | 4.7% |
Analysis – Guess Stock Fair Value
At GoodWhale, we have conducted extensive analysis of the financials of GUESS, a fashion retailer. Our proprietary Valuation Line has indicated that the fair value of a share of GUESS is $30.5. However, the stock is currently trading at $17.4, meaning that it is undervalued by 42.9%. This presents an excellent opportunity for investors to purchase shares at a discounted rate and potentially benefit from future price appreciation. Investors should be aware that investing in stocks entails a certain degree of risk, and they should conduct their own research and analysis before making any investment decisions. More…
Peers
Guess? Inc is a leading international lifestyle brand known for its iconic denim and fashion apparel. Along with Guess?, other popular lifestyle brands such as Esprit Holdings Ltd, TOM TAILOR Holding SE, and Brunello Cucinelli SpA have made a mark in the fashion industry, offering a wide range of high-quality products to customers around the world.
– Esprit Holdings Ltd ($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 may be disappointed in the company’s Q1 FY2024 earnings report, as total revenue fell 4% year-over-year to USD 569.8 million and net income dropped to a loss of USD 11.8 million. This was a stark contrast to the previous year’s Q1, in which the company recorded a net income of 8.0 million. Analysts will be closely monitoring upcoming quarters to determine if the company can return to profitability and deliver strong growth in the future.
