In a challenging market environment, Guess? Inc (NYSE:GES) stock has touched a 52-week low, dipping to $16.78. The fashion retailer, known for its denim and accessories, has faced a tough year, with its stock price reflecting a significant downturn. Over the past year, Guess? Inc has seen its value decrease by -20.07%, a notable decline that has investors and analysts closely watching the company's performance and potential strategies to rebound from this low point. The current price level presents a critical moment for the company as it navigates through the pressures of a competitive retail landscape and seeks to regain its footing in the market.
In other recent news, Guess? Inc. disclosed a 10% rise in revenues, reaching $733 million in the second quarter of fiscal year 2025, according to CEO Carlos Alberini. Despite a drop in Americas retail and Asia businesses, the company saw robust performance in European wholesale and accessory sales. Adjusted operating profit stood at $38 million, with adjusted earnings per share at $0.42. Guess? also revised its full-year outlook, anticipating a revenue growth between 9.5% and 11%, and adjusted earnings per share between $2.42 and $2.70. The company's growth strategy includes the international expansion of rag & bone and the development of the Guess Jeans brand. Additionally, Guess? is investing in marketing and organizational efficiency. These are recent developments that highlight the company's commitment to its strategic initiatives and growth opportunities.
InvestingPro Insights
Despite Guess? Inc (GES) touching a 52-week low, InvestingPro data reveals some intriguing aspects of the company's financial health. The stock's P/E ratio stands at a low 5.23, suggesting it may be undervalued relative to its earnings. This is further supported by an InvestingPro Tip indicating that GES is trading at a low earnings multiple, which could be attractive to value investors.
The company's dividend yield is currently at an impressive 7.08%, reflecting its commitment to shareholder returns. An InvestingPro Tip highlights that Guess? has maintained dividend payments for 18 consecutive years, demonstrating a strong track record of rewarding investors even during challenging times.
While the stock has experienced a significant decline, with a 6-month total return of -34.61%, it's worth noting that Guess? remains profitable. The company reported a revenue of $2.87 billion in the last twelve months, with a gross profit margin of 44.1%. These figures suggest that despite market pressures, Guess? continues to generate substantial sales and maintain healthy margins.
For investors seeking more comprehensive analysis, InvestingPro offers 16 additional tips on Guess? Inc, providing deeper insights into the company's financial position and market performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.