Guess Inc. Reports Negative Earnings and Revenue Growth

In a recent report, Guess, Inc. announced significant declines in earnings and EPS for Q3, leading to investor concerns. Despite a revenue boost, the overall financial outlook raises questions about the company's performance in the upcoming quarters.

Date: 27-11-2024

AI Rating: 4

Guess, Inc. (GES) faced a challenging Q3 as highlighted in the report. The company's earnings plummeted to -$23.40 million compared to $55.70 million in the previous year. This drastic drop in earnings is a significant concern for investors, indicating potential operational issues or declining demand.

The Earnings Per Share (EPS) also reflected this downturn, reporting -$0.47 in Q3 versus $0.82 in the same quarter last year. This substantial decrease in EPS denotes underperformance against previous expectations and could negatively impact investor sentiment.

Adjusted earnings were reported at $17.67 million or $0.34 per share, but this still falls short of analysts' projections of $0.37, indicating a weaker than anticipated performance. The inability to meet these earnings expectations further compounds the negative outlook for the company.

On a positive note, the revenue for the third quarter saw an increase, totaling $738.52 million compared to $651.17 million in the same period last year. This growth in revenue may provide some hope for recovery, but given the substantial losses in earnings and EPS, investors may remain cautious.

Looking forward, the full-year EPS guidance is set between $1.85 and $2.00. However, the previously poor quarterly results and missed targets suggest a likelihood of significant scrutiny regarding whether they can achieve these figures.

Stocks: GES