On May 26, 2023, Guess? Inc (GES) announced their 1Q23 adjusted EPS of ($0.07), which exceeded the consensus. Despite a 4.0% decline in total sales, which amounted to $570 million, the results were better than expected. The company’s earnings were boosted by their sales and gross margin performance, which outperformed their higher expenses.
For 2Q23, GES management anticipates a flat to 1.5% YoY decline in revenue, compared to $643 million in the second quarter of FY22. This outlook is more pessimistic than the prior consensus of a 0.5% increase to $646 million. Dana Telsey, an analyst at Telsey Advisory Group, reiterated a Market Perform rating on GES shares, with a price target of $23. Telsey believes that the company’s diversified operating model served them well in Q1, allowing them to outperform in a challenging macro environment and achieve better-than-expected top and bottom lines.
However, GES’s overall outlook reflects a cautious consumer spending environment in the U.S. and uncertainties in Europe, as well as tighter inventories at retail. Although FX headwinds have subsided and COVID restrictions have lifted globally, macro and inflationary headwinds continue to impact the company’s operations. As a result, GES’s view of the year ahead remains cautious, with limited visibility to an improved operating environment.
According to three analysts, the average rating for GES stock is “Strong Buy.” The 12-month stock price forecast is $25.33, which represents a 46.37% increase from the current price.
GES Stock Opens Strong and Shows Promising Revenue Growth in Apparel/Footwear Industry
On May 26, 2023, GES stock opened at $18.95, up 1.06% from its previous close of $18.80. The day’s range for GES was between $18.85 and $19.62, with a trading volume of 578,006 shares.
GES’s revenue growth for the last year was +3.69%, with an annual revenue of $2.7 billion and an annual profit of $148.2 million. The net profit margin for the company was 5.51%.
GES is part of the Consumer Non-Durables sector and the Apparel/Footwear industry.
Looking ahead, GES is expected to report earnings on August 23, 2023, with an EPS forecast of $0.39 for the quarter. The company’s earnings growth for the next five years is expected to be +26.90%.
Guess? Inc Stock Analysis: Potential 22.70% Increase and Buy Recommendation from Investment Analysts
On May 26, 2023, Guess? Inc’s stock (GES) was trading at a price of 19.56. According to data from CNN Money, the 3 analysts offering 12-month price forecasts for Guess? Inc have a median target of 24.00, with a high estimate of 25.00 and a low estimate of 23.00. This indicates a potential increase of 22.70% from the current price. The consensus among the 3 polled investment analysts is to buy stock in Guess? Inc. Guess? Inc is expected to release its earnings report for the current quarter on August 23, 2023.
Discussion about this post