Categories AlphaGraphs, Earnings, Retail
Guess? Stock jumps after Q2 earnings, revenue beat estimates
Clothing retailer Guess? (NYSE: GES) reported better than expected earnings and revenues for the second quarter, driving the company’s stock sharply higher during Wednesday’s after-hours trading session. The company also provided guidance for the third quarter and fiscal 2020.
Adjusted earnings moved up to $0.38 per share in the second quarter from $0.36 per share a year earlier, contrary to the market’s expectations for a decrease. Unadjusted profit was $25.3 million or $0.35 per share, compared to $25.5 million or $0.31 per share in the second quarter of 2019.
Revenues
Driving the bottom-line growth, revenues advanced 6% annually to $683 million during the three-month period, exceeding Wall Street’s prediction. The top-line benefitted from an impressive performance by the direct-to-customer channel across all markets and solid wholesale sales. Americas retail revenues edged up 0.9%, while wholesale revenues climbed 22.3%. In Europe, total revenues were up 9.1% year-over-year in the second quarter, while Asia revenues rose 0.6%.
Carlos Alberini, CEO of Guess?, said, “Overall, our direct-to-consumer businesses, which include stores and e-commerce, performed in line with our expectations in all regions and our wholesale businesses in the Americas and Europe delivered a very strong performance compared to our expectations. Based on our second-quarter performance, our strong inventory position and our expectations for the Fall and Holiday seasons, we are raising our guidance for the full year.”
Guidance
Looking ahead, the management expects sales to grow 2-3% in the third quarter, when operating margin is projected to increase between 3% and 3.5%. The company is looking for third-quarter adjusted earnings of $0.15-$0.18 per share and unadjusted earnings in the range of $0.12 per share and $0.15 per share.
The guidance for full-year sales growth is between 3% and 3.5%, which would result in a 5.2-5.5% margin growth. In the whole of 2020, adjusted earnings are forecast to be between $1.28 per share and $1.36 per share. The outlook for unadjusted earnings is $1.18-$1.26 per share.
Stock Buyback
During the six-month period, Guess? repurchased around 11.0 shares for $212.6 million. Also, the board of directors has approved a quarterly dividend of $0.1125 per share, which will be paid on September 27, 2019, to shareholders of record on September 11, 2019.
Shares of the company gained about 10% during Wednesday’s extended trading session, after closing the regular session higher.
Most Popular
Key metrics from Shopify’s (SHOP) Q1 2024 earnings results
Shopify Inc. (NYSE: SHOP) reported first quarter 2024 earnings results today. Revenue increased 23% to $1.9 billion compared to the prior-year period. Gross Merchandise Volume (GMV) increased 23% year-over-year to
EA Earnings: Electronic Arts reports lower revenues for Q4 2024
Video game publisher Electronic Arts (NASDAQ: EA) Tuesday reported a decline in revenues for the fourth quarter of 2024. Meanwhile, the top line came in slightly above analysts' estimates. Fourth-quarter
What to look for when Home Depot (HD) reports Q1 2024 earnings
Shares of The Home Depot (NYSE: HD) stayed red on Tuesday. The stock has gained 17% over the past 12 months. The home improvement retailer is scheduled to report its
Comments
Comments are closed.