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Guess? (GES) Queued for Q2 Earnings: Things to Keep in Mind

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Guess?, Inc. GES is likely to register growth in the top and the bottom line when it reports second-quarter fiscal 2022 numbers on Aug 25. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $639.5 million, which suggests an increase of 60.5% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for quarterly earnings has remained unchanged at 68 cents per share in the past 30 days. The projection shows significant improvement from a loss of 1 cent per share reported in the year-ago period. The designer and distributor of apparel and accessories’ bottom line has outperformed the Zacks Consensus Estimate by a significant margin in the trailing four quarters, on average.

Guess, Inc. Price and EPS Surprise

Guess, Inc. Price and EPS Surprise
Guess, Inc. Price and EPS Surprise

Guess, Inc. price-eps-surprise | Guess, Inc. Quote

Key Factors to Note

Guess? has been benefiting from impressive digital efforts. The company is on track with its digital-first initiative and investing in brand building through social media platforms. It has been undertaking efforts such as better data capturing, improved customer profiling, personalized marketing as well as relationship management to improve digital platform. Guess?’s focus on its core strategies like organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint bodes well.

In its last earnings call, management highlighted that it expects fiscal second-quarter adjusted gross margin expansion of nearly 400 basis points compared with fiscal 2020 levels (pre-pandemic), owing to low occupancy costs and promotions coupled with improved IMUs.

Guess? has been bearing adverse impacts from some pandemic-induced temporary store closures. As of May 19, 2021, nearly 95% of the company’s stores were open. Temporary store closures, at some point during the quarter under review, are a concern. Guess? envisions fiscal second-quarter revenues to have declined in mid-single digits from fiscal 2020 level owing to the pandemic-induced store closures and reduced traffic, countered by contributions from global e-commerce business.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Guess? this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Guess? currently carries a Zacks Rank #3 (Hold) and has an Earnings ESP of 0.00%.

Some Stocks With Favorable Combinations

Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

The Gap, Inc. GPS currently has an Earnings ESP of +9.12% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Abercrombie & Fitch Co. ANFcurrently has an Earnings ESP of +6.14% and a Zacks Rank of 1.

Nordstrom, Inc. JWN currently has an Earnings ESP of +18.69% and a Zacks Rank of 3.

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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

Nordstrom, Inc. (JWN) : Free Stock Analysis Report

The Gap, Inc. (GPS) : Free Stock Analysis Report

Guess, Inc. (GES) : Free Stock Analysis Report

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