Guess (GES) Q2 Earnings: What To Expect

GES Cover Image

Contemporary clothing brand Guess (NYSE: GES) will be reporting earnings this Wednesday after market hours. Here’s what to look for.

Guess beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $647.8 million, up 9.4% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is Guess a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Guess’s revenue to grow 4.4% year on year to $765.1 million, slowing from the 10.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.

Guess Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Guess has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Guess’s peers in the apparel and accessories segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Figs delivered year-on-year revenue growth of 5.8%, beating analysts’ expectations by 5.5%, and Kontoor Brands reported revenues up 8.5%, topping estimates by 3.7%. Figs traded down 5.3% following the results while Kontoor Brands was up 19.1%.

Read our full analysis of Figs’s results here and Kontoor Brands’s results here.

There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 6% on average over the last month. Guess is up 22.6% during the same time and is heading into earnings with an average analyst price target of $15.50 (compared to the current share price of $16.80).

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