LOS ANGELES - Guess?, Inc. (NYSE: GES), a global lifestyle fashion brand, has launched a new share repurchase program, authorizing the buyback of up to $200 million of its common stock. The announcement made today also included the completion of a convertible bond exchange transaction, where the company repurchased 326,429 shares for $10.3 million.
CEO Carlos Alberini stated that the repurchase demonstrates the company's confidence in its business and commitment to shareholder returns. This move follows a recently announced special dividend of $2.25 per share, payable in early May. Alberini emphasized Guess?'s robust capital structure and solid cash flow generation, which support the company's growth initiatives.
The repurchases, which may occur on the open market or through private transactions, do not have a set minimum or maximum quantity of shares to be bought back and can be halted at any time without notice.
Guess?, Inc., founded in 1981, offers a wide range of apparel, denim, handbags, watches, eyewear, footwear, and other consumer products. With a network of 1,002 directly operated retail stores across Europe, the Americas, and Asia as of February 3, 2024, and an additional 551 stores operated by partners, Guess? and its associates have a presence in approximately 100 countries globally.
The share repurchase program is based on a press release statement from Guess?, Inc.
InvestingPro Insights
As Guess?, Inc. (NYSE: GES) embarks on a new share repurchase program, the company's financial metrics and market performance provide a broader context for investors. With a market capitalization of $1.69 billion and a P/E ratio of 10.18, Guess? appears to be trading at a low multiple relative to its near-term earnings growth. This is further underscored by an adjusted P/E ratio over the last twelve months as of Q4 2024 standing at 7.97, suggesting a potentially undervalued stock.
In terms of shareholder returns, Guess? has a commendable track record, maintaining dividend payments for 18 consecutive years and raising its dividend for 4 consecutive years. This commitment to shareholder value is further highlighted by the robust dividend yield of 3.81%. Investors should note that the stock has also seen significant appreciation, with a six-month price total return of 47.4% and a one-year price total return of 68.53%, indicating strong recent performance.
For those seeking more in-depth analysis, InvestingPro offers additional insights, including tips on the company's liquidity position and analysts' future earnings revisions. There are currently 13 more InvestingPro Tips available for Guess?, Inc., which can be accessed at InvestingPro. To enhance your investment research, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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