Core Insights - Guess?, Inc. is experiencing growth driven by strong global brand momentum and customer demand, particularly in its Guess, Marciano, and rag & bone brands, despite facing challenges from a weaker consumer environment and elevated costs [1] Group 1: Growth and Performance - The company reported a year-over-year revenue increase of 10% in the second quarter of fiscal 2025, with net revenues reaching $732.6 million, largely attributed to the acquisition of rag & bone and strong wholesale results in Europe and the Americas [2] - Guess?'s wholesale business is a significant growth driver, particularly in European and Americas markets, positioning the company for sustained future success [3] Group 2: Strategic Initiatives - Guess? is implementing a multi-faceted strategy for long-term growth, including the successful integration of rag & bone, expanded marketing efforts, and new store openings in Europe [4] - The company has launched Guess Jeans targeting Gen-Z customers, which has exceeded sales expectations, and doubled its marketing investments to enhance customer engagement [4] - Guess? is optimizing its logistics network through a partnership with GXO Logistics to drive cost efficiencies in the U.S. and Europe, while strengthening its capital structure with expanded credit facilities [4] Group 3: Financial Challenges - Rising operating costs are impacting financial performance, with SG&A expenses increasing to 38.7% of sales from 34.6% a year earlier, primarily due to higher investments in rag & bone and increased marketing spend [5] - The gross margin declined to 43.7% from 44.3%, and adjusted operating margin fell to 5.2% from 9.8%, driven by increased expenses and promotional activity [5] - The company anticipates rising freight costs in the second half of the year due to the ongoing Red Sea crisis, which is expected to impact margins and operating profit [5] Group 4: Outlook Adjustments - Management revised its fiscal 2025 revenue growth projection to between 9.5% and 11%, down from the previous range of 10.7% to 12.7%, and adjusted earnings per share (EPS) forecast to between $2.42 and $2.70, compared to $3.14 reported in fiscal 2024 [6] Group 5: Competitive Landscape - Guess? faces challenges from unfavorable currency fluctuations and stiff competition from other textile-apparel players [7]

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]