U.S. markets closed
  • S&P 500

    4,185.47
    +15.05 (+0.36%)
     
  • Dow 30

    34,200.67
    +164.68 (+0.48%)
     
  • Nasdaq

    14,052.34
    +13.58 (+0.10%)
     
  • Russell 2000

    2,262.67
    +5.60 (+0.25%)
     
  • Crude Oil

    63.07
    -0.39 (-0.61%)
     
  • Gold

    1,777.30
    +10.50 (+0.59%)
     
  • Silver

    26.04
    +0.08 (+0.29%)
     
  • EUR/USD

    1.1980
    +0.0004 (+0.04%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • GBP/USD

    1.3840
    +0.0056 (+0.41%)
     
  • USD/JPY

    108.7830
    +0.0670 (+0.06%)
     
  • BTC-USD

    56,948.70
    -5,313.34 (-8.53%)
     
  • CMC Crypto 200

    1,398.97
    +7.26 (+0.52%)
     
  • FTSE 100

    7,019.53
    +36.03 (+0.52%)
     
  • Nikkei 225

    29,683.37
    +40.68 (+0.14%)
     

Guess? (GES) Looks Solid on Online Business, Strategic Efforts

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

The coronavirus outbreak has altered the way consumers shop, making them more inclined toward online shopping. Incidentally, Guess?, Inc.’s GES impressive digital operations bode well amid such a trend. Moreover, the company is on track with its strategies to drive growth.

Let’s dive deeper.

E-commerce Business: A Key Driver

Guess? is benefitting from its solid digital efforts. Notably, the company’s e-commerce business in North America and Europe increased 19% in the third quarter of fiscal 2021. Prior to this, Guess?’s e-commerce business in these regions rose 9% in the fiscal second quarter. Moreover, management is optimistic about its online growth in fiscal fourth quarter.

Well, Guess? is on track with its digital-first initiative and investing in brand building through social media platforms. Further, the company is focused on integrating brick-and-mortar stores, e-commerce and mobile sales to improve online operations. These efforts have been helping customers reserve merchandise online and pick them up in stores. In order to augment its e-commerce operations, the company is also resorting to data capturing, customer profiling and personalized marketing. Also, it is undertaking robust efforts to elevate its brand.

 

Strategic Growth Efforts

Guess? is on track to enhance operating margin through cost-saving efforts and operational efficiencies. Moreover, it is focusing on customer-centric initiatives that include global e-commerce strategy, salesforce implementation and omnichannel experience redesign projects. In its last earnings call, management stated that it has completed the implementation of the salesforce platform in the United States, Canada and Europe except Russia. It plans to implement the platform in Russia during February 2021. In fact, Guess? is impressed with the performance of the platform that enables better customer experience and improved conversion as well as engagement. Also, it expects to see solid online growth via these platforms.

Guess?, which shares space with Hanesbrands HBI is progressing well with its customer 360 project to enhance personalization, customer data integration, journey engagement as well as results analysis. In fact, management expects to conclude the full implementation of the Customer 360 project by the end of 2021.

That said, shares of this Zacks Rank #3 (Hold) company have increased 35.7% in the past three months compared with the industry’s growth of 19.5%.

Key Picks

Crocs CROX, which sports a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 15%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kontoor Brands, Inc. KTB, which sports a Zacks Rank #1, has a long-term earnings growth rate of 6%.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Guess, Inc. (GES) : Free Stock Analysis Report
 
Hanesbrands Inc. (HBI) : Free Stock Analysis Report
 
Crocs, Inc. (CROX) : Free Stock Analysis Report
 
Kontoor Brands, Inc. (KTB) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research