Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Summaries Kohl's Corporation (KSS) - Dividend Yield: 9.66% - JP Morgan analyst Matthew Boss downgraded the stock from Neutral to Underweight with a price target of $19 on Aug. 29, with an accuracy rate of 68% [3] - Evercore ISI Group analyst Michael Binetti maintained an In-Line rating and reduced the price target from $22 to $20 on Aug. 29, with an accuracy rate of 62% [3] - Recent News: Kohl's reported better-than-expected second-quarter financial results on Aug. 28 [3] Guess?, Inc. (GES) - Dividend Yield: 6.09% - Small Cap Consumer Research analyst Eric Beder reiterated a Buy rating with a price target of $29 on Oct. 1, with an accuracy rate of 64% [4] - Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and cut the price target from $26 to $21 on Aug. 29, with an accuracy rate of 61% [4] - Recent News: Guess? reported worse-than-expected second-quarter adjusted EPS results and lowered its FY25 adjusted EPS guidance below estimates on Aug. 28 [4] The Wendy's Company (WEN) - Dividend Yield: 5.66% - JP Morgan analyst John Ivankoe maintained a Neutral rating and raised the price target from $20 to $22 on Sept. 16, with an accuracy rate of 75% [5] - TD Cowen analyst Andrew Charles reiterated a Hold rating with a price target of $17 on Sept. 9, with an accuracy rate of 80% [5] - Recent News: The Wendy's Company announced executive leadership appointments on Sept. 16 [5]

Core Viewpoint - Guess?, Inc. reported Q2 2024 results that appeared optically good with a 10% top-line growth, primarily driven by the acquisition of rag & bone, but underlying comparable retail sales showed significant declines, particularly in the Americas and APAC regions [1][2][4] Financial Performance - The company experienced a 10% growth in top-line revenue, largely attributed to the acquisition of rag & bone, although specific figures were not disclosed [2] - Direct-to-consumer (DTC) comparable sales fell by 10% in the Americas and 14% in APAC, indicating ongoing challenges in these markets [2] - SG&A expenses increased by 23% year-over-year, amounting to an additional $50 million, partly due to the integration of rag & bone [3] Market Dynamics - The Americas segment has faced declining comparable sales since Q2 2023, with traffic issues and potential product problems contributing to the poor performance [2][5] - Europe showed a slight improvement with a 1% growth in comparable sales, suggesting that the brand is gaining traction in this region [2] Strategic Insights - The company plans to double its advertising-to-revenue ratio from 1.5%, which would increase marketing expenses by an additional $50 million annually [3] - Management intends to continue investing in marketing despite lower comparable sales, which may impact margins if sales do not improve significantly [3] Valuation Considerations - The current market capitalization of Guess? is approximately $1.05 billion, with a projected net income of about $150 million for FY25, resulting in a P/E ratio of 7x [4] - If sales decline by 10% in FY26, net income could drop to around $56 million, leading to a P/E ratio of 18x, indicating that the market anticipates continued negative trends [4] Analyst Sentiment - Concerns were raised regarding the potential influence of paid analysts on management's communications, which could affect investor perceptions [3][5] - Given the challenges and uncertainties surrounding the company's future, it has been suggested to categorize Guess? as a "too hard" investment opportunity, prompting a shift to a Hold rating [5]

Core Viewpoint - Guess? Inc. (GES) reported mixed results for the second quarter of fiscal 2025, with revenue growth year over year but a decline in earnings that missed consensus estimates [1][3]. Financial Performance - Adjusted earnings were 42 cents per share, missing the Zacks Consensus Estimate of 44 cents, and down 42% from 72 cents in the same quarter last year [3][4]. - Net revenues reached $732.6 million, a 10% increase year over year, and a 13% increase on a constant-currency basis, driven by the acquisition of Rag & Bone and strong wholesale results in Europe and the Americas [4][6]. - Gross margin decreased to 43.7% from 44.3% in the prior year, while SG&A expenses rose to 38.7% from 34.6% [5][6]. Segment Performance - Americas Retail segment revenues increased by 8% in U.S. dollars, but comparable sales declined by 10% [7]. - Americas Wholesale revenues surged by 93% on a reported basis, although the operating margin fell to 18.9% due to newly-acquired businesses [7]. - Europe segment revenues grew by 5% reported and 8% at constant currency, with retail comparable sales up 1% [8]. - Asia revenues declined by 8% reported and 4% at constant currency, with retail comparable sales down 14% [9]. - Licensing revenues rose by 4% reported and at constant currency, with an operating margin of 93.3% [10]. Financial Health - The company ended the quarter with cash and cash equivalents of $218.9 million and long-term debt of approximately $187.8 million [11]. - Net cash from operating activities for the six months ended August 3, 2024, was $21.7 million, while free cash flow was negative almost $23 million [12]. Future Outlook - For fiscal 2025, GES projects revenue growth between 9.5% and 11%, down from a previous range of 10.7% to 12.7% [14]. - Adjusted EPS is expected to be between $2.42 and $2.70, revised down from $2.62 to $3.00 [15]. - For the third quarter of fiscal 2025, revenue growth is anticipated in the range of 14.5% to 16.5%, with adjusted EPS forecasted between 33 and 45 cents [16].

Guess (GES) came out with quarterly earnings of $0.42 per share, missing the Zacks Consensus Estimate of $0.44 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of -4.55%. A quarter ago, it was expected that this clothing company would post a loss of $0.39 per share when it actually produced a loss of $0.27, delivering a surprise of 30.77%. Over the last four quarters, the company has s ...

Financial Performance - Revenues for Q2 FY2025 increased to $733 million, up 10% in U.S. dollars and 13% in constant currency compared to the prior year[1]. - GAAP net loss for Q2 FY2025 was $10.6 million, resulting in a GAAP loss per share of $0.28, compared to GAAP net earnings of $39.0 million and EPS of $0.59 in the same prior-year quarter[6][7]. - Adjusted net earnings for Q2 FY2025 were $23.0 million, a 42% decrease from $39.7 million in the same prior-year quarter, with adjusted EPS decreasing to $0.42 from $0.72[7]. - The Company expects revenue growth for the full fiscal year 2025 to be between 9.5% and 11.0% in U.S. dollars, with GAAP EPS projected between $1.92 and $2.14[1][2]. - Adjusted earnings from operations for Q2 FY2025 decreased 41.6% to $37.9 million, with adjusted operating margin falling to 5.2% from 9.8% in the same prior-year quarter[10][11]. - The Company expects consolidated net revenue to increase between 14.5% and 16.5% for the third quarter of fiscal 2025 and between 9.5% and 11.0% for the full fiscal year 2025[24]. - GAAP diluted EPS is projected to be between $0.28 and $0.38 for the third quarter and between $1.92 and $2.14 for the full fiscal year 2025[24]. - Adjusted diluted EPS is expected to range from $0.33 to $0.45 for the third quarter and from $2.42 to $2.70 for the full fiscal year 2025[26]. - The effective income tax rate for the three months ended August 3, 2024, was 373.9%, significantly higher than 26.5% in the same period last year[42]. - Adjusted net earnings attributable to Guess?, Inc. for the three months ended August 3, 2024, were $22,950,000, a decrease of 42.3% from $39,712,000 in the same period last year[43]. Revenue Breakdown - Americas Wholesale revenues surged by 93% in U.S. dollars and 94% in constant currency during Q2 FY2025[8]. - Europe revenues increased by 5% in U.S. dollars and 8% in constant currency, while Asia revenues decreased by 8% in U.S. dollars and 4% in constant currency[8][9]. - Product sales for the three months ended August 3, 2024, reached $703,460,000, a 10.5% increase from $636,496,000 for the same period last year[42]. - Net revenue for the six months ended August 3, 2024, was $1,324,503,000, compared to $1,234,310,000 for the same period last year, reflecting a 7.3% increase[42]. - Total net revenue for the three months ended August 3, 2024, was $732,560,000, representing a 10% increase compared to $664,512,000 for the same period last year[49]. - The company’s total net revenue for the six months ended August 3, 2024, was $1,324,503,000, a 7% increase from $1,234,310,000 in the prior year[51]. Expenses and Margins - Operating margin for Q2 FY2025 decreased to 6.5%, down from 9.7% in the same prior-year quarter, primarily due to higher expenses and the impact of newly acquired businesses[10]. - Adjusted earnings from operations for the three months ended August 3, 2024, were $37,943,000, down from $64,992,000 in the same period last year[42]. - Selling, general and administrative expenses increased to $282,951,000, representing 38.7% of net revenue for the three months ended August 3, 2024[42]. - The company experienced a 32% increase in corporate overhead costs, totaling $45,707,000 compared to $34,546,000 in the previous year[49]. - Total lease costs (excluding finance lease costs) increased to $171,730,000 for the six months ended August 3, 2024, compared to $154,507,000 for the same period last year, reflecting an increase of 11%[55]. Acquisitions and Strategic Moves - The Company completed the acquisition of rag & bone on April 2, 2024, integrating it into existing segments and planning to accelerate store openings domestically and internationally[4][5]. - The Company acquired all operating assets and a 50% interest in the intellectual property assets of rag & bone on April 2, 2024, expanding its market presence[36]. - The company has excluded certain costs related to the rag & bone acquisition and other operational transitions from its fiscal 2025 outlook, indicating a focus on core business performance[62]. Cash Flow and Dividends - The Company anticipates free cash flow of $100 million for fiscal 2025, after accounting for $200 million in net cash provided by operating activities and $100 million in capital expenditures[27]. - A quarterly cash dividend of $0.30 per share has been approved, payable on September 27, 2024[28]. - The company reported a total asset value of $2,776,645,000 as of August 3, 2024, an increase from $2,590,021,000 in February 2024[53]. - Cash and cash equivalents decreased to $218,856,000 from $360,285,000 in February 2024[53]. - Net cash provided by operating activities for the six months ended August 3, 2024, was $21,734,000, a decrease of 54% compared to $47,273,000 for the six months ended July 29, 2023[55]. - Free cash flow for the six months ended August 3, 2024, was $(22,960,000), compared to $9,075,000 for the six months ended July 29, 2023[56]. Risks and Forward-Looking Statements - Forward-looking statements indicate potential risks including changes in consumer confidence, supply chain disruptions, and impacts from geopolitical events[37]. - The company anticipates that foreign currency exchange rates will remain stable at recently prevailing rates for the third quarter and full fiscal year 2025[62]. Store Operations - As of August 3, 2024, the Company operated 1,054 retail stores globally, with an additional 537 stores operated by partners and distributors[36]. - The company operated a total of 1,591 stores globally as of July 29, 2023, with 1,054 directly operated stores and 537 partner-operated concessions[58].

Guess? Inc. (GES) is likely to register top-line growth when it reports second-quarter fiscal 2025 earnings on Aug 28. The Zacks Consensus Estimate for revenues is pegged at $732 million, suggesting growth of 10.2% from the prior-year quarter's reported figure. However, the bottom line is likely to decline year-over-year in the quarter. The Zacks Consensus Estimate for quarterly earnings has remained unchanged in the past 30 days at 44 cents per share. The projection indicates a decline of 38.9% from the fi ...

Core Insights - Guess?, Inc. is leveraging its global platform for business growth, supported by a strong management team and a commitment to six key strategies [1][3] - The company is optimistic about fiscal 2025, expecting to exceed $3 billion in revenues for the first time, with projected revenue growth of 10.7-12.7% [3][4] Growth Drivers - The company is experiencing robust brand momentum and positive customer response, with first-quarter net revenues rising year over year and surpassing estimates [2] - Significant progress has been made in reducing SKUs by 30% and streamlining retail assortments to enhance productivity [5] Strategic Initiatives - Guess? is focused on brand elevation, improving product quality, visual merchandising, and enhancing the customer shopping experience both in-store and online [6] - The strategic business plan emphasizes organization, culture, brand relevance, customer focus, product excellence, and international presence [4] Challenges - The company faces rising operating costs, with SG&A expenses increasing to 45.1% of sales from 40.6% year over year [7] - Supply chain disruptions and inflation are impacting consumer spending and operational costs, particularly in the Americas [8]

Core Insights - Ceylon Graphite Corp. has entered into a purchase and distribution agreement with GES Europe GmbH, a leader in graphite product distribution, to enhance its market presence and product outreach [1][2][3] Company Overview - Ceylon Graphite Corp. is a public company listed on the TSX Venture Exchange, focused on mining high-grade graphite in Sri Lanka and developing innovative applications for graphene and graphite [4] - The graphite mined in Sri Lanka is recognized for its high quality and suitability for various applications, including electric vehicles, battery storage, construction, healthcare, and paints [4] Partnership Details - GES will utilize Ceylon graphite in products such as 95%+ C direct ship graphite and thermally purified 99% C grade, providing customer outreach, market entry strategies, market research, and contract negotiation [2][3] - The distribution agreement grants GES preferred pricing and guaranteed supply contingent on maintaining certain volume thresholds for an initial period of 12 months, with exclusivity in Europe [6] Market Demand - There is unprecedented demand for Ceylon's high-carbon, low-environmental footprint natural vein graphite, driven by reduced Chinese exports and a recent 25% tariff increase on Chinese graphite announced by President Biden [3][6] - GES's CEO highlighted the unique high natural carbon characteristics of Ceylon's graphite, which are beneficial for a range of industries, including battery manufacturing and construction [6]

Group 1: Value Investing Overview - Value investing is a popular strategy for identifying undervalued stocks using fundamental analysis and metrics [1] - Investors often develop individual strategies, focusing on value, growth, and momentum trends to discover strong companies [3] Group 2: Company Metrics - Hanesbrands (HBI) has a price-to-book (P/B) ratio of 4.95, compared to its industry's average of 5.77, with a historical range between 3.31 and 5.97 over the past year [2] - Guess (GES) has a Zacks Rank of 2 (Buy) and a Value grade of A, with a price-to-earnings (P/E) ratio of 6.84, significantly lower than the industry average of 12.36 [5] - GES's forward P/E has fluctuated between 6.24 and 11.38, with a median of 7.68 over the past year [5] - GES has a price-to-sales (P/S) ratio of 0.4, compared to the industry's average of 0.66 [6] - HBI is rated as a 1 (Strong Buy) stock with a Value grade of A, indicating strong potential for value investors [6] Group 3: Investment Outlook - Both Guess and Hanesbrands are likely undervalued based on their current metrics, making them attractive options for value investors [7]

PVH Corp, a renowned apparel company, presently carries a Zacks Rank #2. PVH has a trailing four-quarter earnings surprise of 10.1%, on average. Guess?, Inc. (GES) is benefiting from robust brand momentum globally and strong customer response to its product categories. The company is committed to its six key strategies and has made remarkable progress against each of them. Courtesy of these upsides, the company began the fiscal 2025 on a strong note, with the first-quarter top line increasing year over year ...