Here's Why You Should Consider Investing in Guess? (GES) Now
Guess? Inc. GES has been benefiting from strength across its businesses, a focus on strategic priorities, strong omnichannel capabilities and shareholder-friendly policies. The company is also implementing various upgrades to its store and e-commerce infrastructure to improve the ease of shopping and increase customer conversion.
The Zacks Consensus Estimate for GES’ fiscal 2024 sales and earnings per share (“EPS”) is currently pegged at $2.8 billion and $3.01, respectively, suggesting growth of 3.4% and 9.9%, respectively, from the corresponding year-ago reported figures. This reflects the analysts’ optimism about the stock.
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This Zacks Rank #2 (Buy) stock has gained 20.9% in the past year against the industry’s decline of 2.7%.
Let’s delve into the factors that make investing in this company a wise choice at the moment.
Guess? has been experiencing solid momentum in its retail end markets across Europe and Asia, driven by healthy demand for its products. In the second quarter of fiscal 2024, revenues from the company’s Europe segment increased 9% on a reported basis and 8% at constant currency. The results were backed by solid retail store performance. Of late, increased consumer activity in Korea has also been driving its Asia segment’s performance.
Driven by its business strength, Guess? raised its revenue and earnings projection for fiscal 2024. GES currently expects revenues to grow by 2.5-4% in fiscal 2024, higher than its previous projection of 2-4% growth. It anticipates fiscal 2024 adjusted EPS of $2.88-$3.08, higher than $2.74 recorded in fiscal 2023.
The company has been focused on a brand-elevation strategy, which includes enhancing product quality, visual merchandising and boosting customers’ shopping experience across stores and online. In terms of brand elevation and category expansion, the company intends to utilize the strength of its Guess and Marciano brands.
Guess? is on track with its customer-centric initiatives, including omnichannel capabilities, advanced data analytics and customer segmentation. GES upgraded its store infrastructure, including the implementation of mobile point-of-sale check-out, Salesforce Customer 360 and a real-time inventory and sales dashboard. Management also remains committed to enhancing pricing, marketing campaigns and e-commerce inventory.
The company remains committed to rewarding shareholders through dividend payouts and share buybacks. For instance, in second-quarter fiscal 2024, it repurchased 2.2 million shares, amounting to $42.8 million. Also, in May 2023, GES announced a 33% hike in its quarterly dividend, from 22.5 cents per share to 30 cents.
Other Stocks to Consider
Here, we have highlighted three other top-ranked stocks from the same space.
American Eagle Outfitters AEO, a retailer of casual apparel, accessories and footwear, currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS indicates an increase of 2.2% and 34%, respectively, from the year-ago reported figures. AEO delivered an average earnings surprise of 43.2% in the last four quarters.
GIII Apparel Group GIII sports a Zacks Rank #1 at present. The Zacks Consensus Estimate for GIII’s current fiscal year sales and EPS implies growth of 2.4% and 14.7%, respectively, year over year. It delivered a trailing four-quarter earnings surprise of 526.6%, on average.
Abercrombie & Fitch ANF, a specialty retailer, currently has a Zacks Rank #2.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 10.1% and 1,648%, respectively, from the year-ago reported figures. ANF has a trailing four-quarter earnings surprise of 724.8%, on average.
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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Guess?, Inc. (GES) : Free Stock Analysis Report
G-III Apparel Group, LTD. (GIII) : Free Stock Analysis Report
