Analysts on Wall Street project that Guess (GES) will announce quarterly earnings of $1.55 per share in its forthcoming report, representing a decline of 10.9% year over year. Revenues are projected to reach $855.54 million, increasing 4.6% from the same quarter last year.Over the last 30 days, there has been an upward revision of 33.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Investors are always looking for stocks that are poised to beat at earnings season and Guess?, Inc. (GES) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Guess? is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator ...

Wall Street expects a year-over-year decline in earnings on higher revenues when Guess (GES) reports results for the quarter ended January 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may mov ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key ...

After navigating through the first two months of 2024, certain stocks emerge as clear winners in the market.Unsurprisingly, tech giant Nvidia (NASDAQ: NVDA) takes the lead out of the blue-chip stocks with an impressive year-to-date (YTD) price increase of 64%. However, the surprise comes with Constellation Energy (NASDAQ: CEG) clinching the second spot among the best-performing NASDAQ 100 stocks with a remarkable growth of 46% since January 1. CEG stock YTD price chart. Source: Google FinanceThis surge in p ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 28, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-11893 GUESS?, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and related notes for Guess?, Inc. as of July 29, 2023, and for the three and six-month periods then ended [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flows, and comprehensive notes, for Guess?, Inc [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, showing changes in assets, liabilities, and equity between July 29, 2023, and January 28, 2023 Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | Jul 29, 2023 | Jan 28, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,489,159** | **$2,425,448** | | Cash and cash equivalents | $302,626 | $275,765 | | Inventories | $554,425 | $510,899 | | **Total Liabilities** | **$1,954,765** | **$1,843,543** | | Convertible senior notes due 2028, net | $266,110 | $— | | **Total Stockholders' Equity** | **$533,821** | **$572,751** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This section details the company's financial performance, showing increased net revenue and earnings from operations for the three months ended July 29, 2023, compared to the prior year Q2 Fiscal 2024 vs Q2 Fiscal 2023 (in thousands, except per share data) | Metric | Three Months Ended Jul 29, 2023 | Three Months Ended Jul 30, 2022 | | :--- | :--- | :--- | | Net revenue | $664,512 | $642,690 | | Gross profit | $294,443 | $270,501 | | Earnings from operations | $64,600 | $53,446 | | Net earnings attributable to Guess?, Inc. | $39,033 | $23,962 | | Diluted EPS | $0.59 | $0.35 | Six Months Fiscal 2024 vs Six Months Fiscal 2023 (in thousands, except per share data) | Metric | Six Months Ended Jul 29, 2023 | Six Months Ended Jul 30, 2022 | | :--- | :--- | :--- | | Net revenue | $1,234,310 | $1,236,163 | | Earnings from operations | $63,678 | $89,821 | | Net earnings attributable to Guess?, Inc. | $27,228 | $31,932 | | Diluted EPS | $0.46 | $0.46 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash flow activities, showing significant improvement in operating cash flow and changes in investing and financing activities for the six months ended July 29, 2023 Cash Flow Summary - Six Months Ended (in thousands) | Cash Flow Activity | Jul 29, 2023 | Jul 30, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $47,273 | $1,502 | | Net cash used in investing activities | ($35,836) | ($51,236) | | Net cash provided by (used in) financing activities | $13,253 | ($181,149) | | **Net change in cash and cash equivalents** | **$26,861** | **($241,193)** | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed accounting policies and disclosures, covering segment performance, debt obligations, convertible notes, and ongoing legal proceedings - The company's Europe segment is the largest revenue contributor, generating **$366.3 million** in Q2 2024, an **8.8% increase YoY**[73](index=73&type=chunk) - In April 2023, the company issued **$275 million** of 3.75% Convertible Senior Notes due 2028 and exchanged approximately **$184.9 million** of its existing 2.00% notes due 2024. This resulted in a **$7.7 million loss on debt extinguishment**[90](index=90&type=chunk)[91](index=91&type=chunk) - The company is involved in ongoing legal proceedings, including a customs tax dispute with the Italian Customs Agency totaling **€9.8 million** and stockholder derivative lawsuits related to allegations against executive Paul Marciano[123](index=123&type=chunk)[126](index=126&type=chunk)[128](index=128&type=chunk) - In May 2023, the company acquired the remaining **30% noncontrolling interest** in its Russian subsidiary, Guess CIS, for **€8.0 million** after the minority holder exercised a put option[132](index=132&type=chunk)[133](index=133&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an analysis of the company's financial condition and operational results for the second quarter and first half of fiscal 2024, covering segment performance, macroeconomic impacts, strategic priorities, and liquidity [Business and Strategy Overview](index=43&type=section&id=Business%20and%20Strategy%20Overview) This section outlines the company's strategic priorities and addresses the impact of macroeconomic headwinds, including inflation and geopolitical conflicts, on its global operations - Macroeconomic conditions, including inflation and higher interest rates, continue to negatively impact the business[178](index=178&type=chunk) - Operations in Russia, Belarus, and Ukraine represented slightly more than **4% of total revenue** for the six months ended July 29, 2023[195](index=195&type=chunk) - Strategic priorities include brand elevation, product excellence, customer centricity, optimizing global footprint, improving functional capabilities, and driving growth[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) - Capital allocation priorities include investments in growth and infrastructure, returning value to shareholders via dividends and share repurchases, and managing working capital[209](index=209&type=chunk) [Executive Summary](index=49&type=section&id=Executive%20Summary) This section provides a high-level overview of the company's Q2 FY2024 performance, highlighting growth in net revenue, expansion in gross and operating margins, and an increase in net earnings Q2 FY2024 Performance Highlights | Metric | Q2 FY2024 | YoY Change | | :--- | :--- | :--- | | Total Net Revenue | $664.5M | +3.4% | | Gross Margin | 44.3% | +220 bps | | SG&A Rate | 34.6% | +100 bps | | Operating Margin | 9.7% | +140 bps | | Diluted EPS | $0.59 | +$0.24 | - Inventory increased **3.5% to $554.4 million** as of July 29, 2023, from the prior year, or **0.2%** on a constant currency basis[222](index=222&type=chunk) - The company and its partners opened **9 new stores** and closed **28 stores** worldwide during the quarter[222](index=222&type=chunk) [Results of Operations - Three Months Ended July 29, 2023](index=51&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20July%2029%2C%202023) This section details the company's operational results for the three months ended July 29, 2023, showing consolidated net revenue growth driven by Europe and Asia, offsetting declines in the Americas, with overall operating margin improvement Net Revenue by Segment (in thousands) | Segment | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Europe | $366,311 | $336,707 | 8.8% | | Americas Retail | $167,568 | $181,655 | (7.8%) | | Americas Wholesale | $43,680 | $50,195 | (13.0%) | | Asia | $58,937 | $49,365 | 19.4% | | Licensing | $28,016 | $24,768 | 13.1% | | **Total** | **$664,512** | **$642,690** | **3.4%** | Earnings from Operations by Segment (in thousands) | Segment | Q2 FY2024 | Q2 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Europe | $47,196 | $34,538 | 36.6% | | Americas Retail | $15,261 | $23,921 | (36.2%) | | Americas Wholesale | $11,065 | $11,442 | (3.3%) | | Asia | ($539) | ($3,300) | (83.7%) | | Licensing | $26,354 | $21,206 | 24.3% | - Europe's revenue growth was driven by an **11% increase in comparable sales** and higher wholesale revenue. Operating margin expanded by **260 basis points**[242](index=242&type=chunk)[243](index=243&type=chunk) - Americas Retail revenue declined due to a **6% decrease in comparable sales** and net store closures. Operating margin compressed by **410 basis points**[245](index=245&type=chunk)[246](index=246&type=chunk) [Results of Operations - Six Months Ended July 29, 2023](index=58&type=section&id=Results%20of%20Operations%20-%20Six%20Months%20Ended%20July%2029%2C%202023) This section presents the operational results for the six months ended July 29, 2023, indicating flat net revenue, a decline in consolidated operating income, and a contraction in operating margin due to various factors Net Revenue by Segment - Six Months (in thousands) | Segment | H1 FY2024 | H1 FY2023 | % Change | | :--- | :--- | :--- | :--- | | Europe | $646,509 | $612,716 | 5.5% | | Americas Retail | $311,112 | $348,140 | (10.6%) | | Americas Wholesale | $95,073 | $118,552 | (19.8%) | | Asia | $129,712 | $105,587 | 22.8% | | Licensing | $51,904 | $51,168 | 1.4% | | **Total** | **$1,234,310** | **$1,236,163** | **(0.1%)** | - Consolidated earnings from operations decreased by **$26.1 million (29.1%) YoY**, with operating margin falling from **7.3% to 5.2%**[257](index=257&type=chunk) - The decrease in operating margin was driven by higher expenses (**270 bps**), unfavorable currency (**120 bps**), and lower government subsidies (**110 bps**), partially offset by higher initial markups (**190 bps**)[266](index=266&type=chunk) - A loss on extinguishment of debt of **$7.7 million** was recorded in H1 FY2024 related to the partial retirement of the 2024 Notes[268](index=268&type=chunk) [Liquidity and Capital Resources](index=65&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the company's liquidity position, capital resources, and capital allocation strategies, including cash balances, borrowing capacity, debt transactions, share repurchases, and dividends - The company ended the quarter with **$302.6 million in cash and cash equivalents** and over **$600 million in total liquidity** including borrowing capacity[303](index=303&type=chunk) - Net cash from operating activities improved by **$45.8 million YoY to $47.3 million**, driven by favorable changes in working capital[304](index=304&type=chunk)[305](index=305&type=chunk) - In H1 FY2024, the company repurchased **2.2 million shares** for **$42.8 million**. As of July 29, 2023, **$19.7 million** remained under the share repurchase authorization[318](index=318&type=chunk) - A regular quarterly cash dividend of **$0.30 per share** was announced on August 23, 2023[315](index=315&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section discusses the company's exposure to market risks, primarily foreign currency exchange rate fluctuations and interest rate changes, and its use of derivative instruments for mitigation - The company is exposed to exchange rate risk as over **two-thirds of its product sales** are denominated in currencies other than the U.S. dollar[327](index=327&type=chunk) - The company uses foreign exchange currency contracts to hedge against currency fluctuations. A uniform **10% weakening of the U.S. dollar** would decrease the fair value of these derivatives by **$28.2 million**[329](index=329&type=chunk) - The company is exposed to interest rate risk on its floating-rate debt and uses interest rate swap agreements to convert some of this debt to a fixed-rate basis[330](index=330&type=chunk) [Item 4. Controls and Procedures](index=72&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of July 29, 2023, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of the end of the quarterly period[336](index=336&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the second quarter of fiscal 2024[337](index=337&type=chunk) [PART II. OTHER INFORMATION](index=73&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional disclosures, including details on legal proceedings, specific risk factors related to convertible notes, equity security transactions, and other pertinent information [Item 1. Legal Proceedings](index=73&type=section&id=Item%201.%20Legal%20Proceedings) This section directs readers to Note 13 of the financial statements for detailed information regarding the company's ongoing legal proceedings - For information on legal proceedings, the report directs readers to Note 13 in Part I, Item 1[339](index=339&type=chunk) [Item 1A. Risk Factors](index=73&type=section&id=Item%201A.%20Risk%20Factors) This section outlines specific risks related to the company's convertible senior notes, including potential funding challenges for repurchases, limitations from other debt agreements, and impacts on financial condition from conditional conversion features - A key risk is the potential inability to fund the cash repurchase of its **2024 and 2028 convertible notes** if required, which could be restricted by other debt agreements[341](index=341&type=chunk) - Provisions in the notes' indentures, such as the requirement to repurchase notes for cash upon a 'fundamental change', could make a takeover of the company more difficult or expensive[343](index=343&type=chunk) - If the conditional conversion feature of the notes is triggered, the company may be required to settle the obligation in cash, which could adversely affect liquidity and net working capital[344](index=344&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's equity security transactions, noting no repurchases under the public program during Q2 FY2024, with shares withheld for employee tax obligations and remaining repurchase authorization Issuer Purchases of Equity Securities (Q2 FY2024) | Period | Total Shares Purchased | Average Price Paid per Share | Purchased as Part of Publicly Announced Program | | :--- | :--- | :--- | :--- | | May 28, 2023 to July 1, 2023 | 203 | $20.26 | No | | **Total Q2** | **203** | **$20.26** | **No** | - No shares were repurchased under the company's publicly announced plan during the second quarter. The **203 shares** acquired were related to employee tax withholding on vested stock awards[348](index=348&type=chunk)[349](index=349&type=chunk) - The remaining capacity under the share repurchase program is **$19.7 million** as of the end of the quarter[348](index=348&type=chunk) [Item 5. Other Information](index=76&type=section&id=Item%205.%20Other%20Information) This section confirms that no directors or officers adopted, modified, or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the second quarter of fiscal 2024 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the second quarter[350](index=350&type=chunk) [Item 6. Exhibits](index=77&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[352](index=352&type=chunk)

Financial Data and Key Metrics Changes - The company's revenues for Q2 grew by 3% and adjusted earnings from operations reached $65 million, which is 17% ahead of last year [29][57] - Adjusted operating margin improved to 9.8%, an increase of 110 basis points compared to last year's Q2, driven primarily by higher initial markups and favorable business mix [58][76] - The total company's gross margin was 44.3%, an improvement of 220 basis points, attributed to improved initial markups and lower markdowns [57][58] Business Line Data and Key Metrics Changes - The Americas Wholesale business reported a 13% revenue decrease but beat operating earnings expectations with improved gross margins [7][21] - The direct-to-consumer business experienced double-digit comp growth in stores, while the Americas Retail business reported an 8% revenue decrease [21][22] - The licensing business increased revenues by 13% and earnings from operations by 24%, driven by strong performance in fragrances, handbags, footwear, and watches [23][56] Market Data and Key Metrics Changes - In Europe, revenues increased by 9% in U.S. dollars, driven by strong retail store comps and higher wholesale shipments [41][42] - Asia saw a revenue growth of 19% in U.S. dollars, primarily due to recently acquired stores in Korea [44][56] - The Americas experienced a decline in revenues, with a 13% decrease in wholesale and an 8% decrease in retail [22][44] Company Strategy and Development Direction - The company is focusing on brand innovation, inventory management, efficiencies, and cost control as key areas for value creation [11][26] - A brand elevation initiative is being implemented to enhance global representation and streamline operations [12][15] - The company aims to reduce inventory by 10% by year-end, with a focus on disciplined purchasing based on expected customer demand [15][55] Management's Comments on Operating Environment and Future Outlook - Management noted that despite challenges such as higher interest rates and inflation impacting consumer confidence, they remain confident in brand momentum and product resonance with customers [10][64] - The company anticipates stronger operating margins in the second half of the year, driven by improved performance in Q2 and a favorable outlook for Europe [81][84] - Management expressed optimism about growth opportunities in various markets, particularly in India and Asia, while acknowledging challenges in North America [119][120] Other Important Information - The company ended the quarter with $303 million in cash, a significant increase from $174 million a year ago, driven by free cash flow and net draws on credit facilities [78][80] - Free cash flow for the first half was positive $9 million, an improvement of $63 million compared to the prior year [80] - The company is on track to generate free cash flow of roughly $160 million for the fiscal year [38][63] Q&A Session Summary Question: How do you think about the guidance for the operating margin and the health of the consumer in different regions? - Management indicated a solid plan for the second half of the year, with expectations for improved operating margins despite consumer pressures [62][70] Question: Can you elaborate on the trend in Europe and the categories seeing strong growth? - Management highlighted strong performance in apparel and accessories, particularly in handbags and athleisure, with a focus on maintaining healthy customer traffic [110][112] Question: What are the opportunities for adding more stores in other countries? - Management expressed confidence in expanding the brand's presence in various markets, particularly in India and China, while being prudent with capital allocation [116][119]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 1-11893 GUESS?, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or ...