TipRanks

Notifications

Guess Spikes 12% After 2Q Sales Beat The Street

Shares of Guess advanced 12% in Wednesday’s morning trading after the clothing retailer topped 2Q revenue of $399 million. Analysts had anticipated revenue of $385 million. The company’s 2Q loss of $0.01 per share was lower than analysts’ expectations of a loss of $0.58. Guess reported earnings of $0.38 per share in the year-ago quarter.

Guess’ (GES) revenue in 2Q declined 42% year-over-year, due to store closures and lower demand during the pandemic. Guess’ CEO Carlos Alberini said “We increased product margins, ended the period with inventories down 13% compared to last year and finished the quarter with a strong balance sheet and ample liquidity.” Alberini added that the company is “well positioned” for the second half.

Guess reinstated its quarterly dividend of $0.1125 per share, which will be paid on October 2 to shareholders of record as on Sept. 16. The company spent $39 million to buy back shares during the quarter. (See GES stock analysis on TipRanks).

On Sept. 2, BTIG analyst Susan Anderson maintained a Buy rating on the stock and a price target of $15 (7.1% upside potential), saying that “Online clearance was +20% Y/Y this week and continues to trend higher but stabilize from early August highs.”

Currently, the Street has a cautiously optimistic outlook on the stock, with a Moderate Buy analyst consensus. The average price target of $14 implies that the shares are fully priced at current levels. Shares have dropped over 37% year-to-date.

Related News:
Gogo Pops 21% On $400M Intelsat Deal For Commercial Aviation Biz
Macy’s Pops 6% As 2Q Revenue Surprises
H&R Block Drops After 1Q Revenue Miss

Tags: ,
Amit Singh
Amit Singh has over eight years of strong experience (both sell-side and buy-side) in analyzing financial reports and filings as well as identifying strategic investment opportunities. Over the years, Amit has covered various industries and geographies, with a primary focus on consumer staples and the consumer discretionary sector. Amit’s background spans evaluating company portfolios, building complex financial models, writing financial articles, and identifying the overall financial worth of companies. He has a post-graduate diploma in finance.

Leave a Reply

Your email address will not be published. Required fields are marked *

Leave a Reply

Your email address will not be published. Required fields are marked *