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Guess? stock leaps on earnings and revenue beat, upbeat guidance

EditorLina Guerrero
Published 03/20/2024, 05:02 PM
© Reuters.
GES
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LOS ANGELES - Fashion retailer Guess?, Inc. (NYSE: GES) reported a significant beat on both earnings and revenue for its fourth quarter, with adjusted EPS coming in at $2.01, well above the analyst consensus of $1.64. The company's revenue for the quarter also surpassed expectations, reaching $891 million compared to the predicted $855.56 million.

The company's robust performance in the fourth quarter was driven by a 9% increase in revenue compared to the same quarter last year, reflecting strong brand momentum across all product categories and regions. Europe, in particular, saw a 9% increase in U.S. dollars and constant currency, while Asia revenues jumped by 18% in U.S. dollars and 19% in constant currency. Americas Wholesale revenues surged by 44% in U.S. dollars and 39% in constant currency, contributing to the overall success of the quarter.

For the full fiscal year 2024, Guess? delivered an impressive 3% increase in revenue, totaling $2.8 billion, with GAAP EPS growing by 40% to $3.09 and adjusted EPS by 15% to $3.14. The company's disciplined approach to managing its business resulted in $330 million of operating cash flow and $248 million of free cash flow, ending the year with a strong cash position of $360 million.

Looking ahead, Guess? provided an optimistic outlook for the full fiscal year 2025, expecting an 11.5% to 13.5% increase in revenue in U.S. dollars. The company anticipates GAAP EPS to be between $2.08 and $2.43 and adjusted EPS between $2.56 and $3.00, which, at the midpoint, is higher than the analyst consensus of $2.97.

Carlos Alberini, Chief Executive Officer, expressed satisfaction with the results, stating, "We are very pleased with our fourth quarter results, which exceeded our expectations for revenues, operating earnings, and earnings per share, and capped an outstanding year for our Company."

Following the earnings release, Guess? shares rose by 2.89%, indicating a positive market response to the earnings and revenue beat, as well as the guidance that exceeded analyst expectations. The company's strategic initiatives, including brand elevation and business transformation, have resonated well with customers, setting a solid foundation for continued growth and success.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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