The 10-second takeaway
For the quarter ended Jan. 28 (Q4), Guess? met expectations on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share shrank.
Margins dropped across the board.
Guess? booked revenue of $775.8 million. The 11 analysts polled by S&P Capital IQ expected revenue of $778.8 million on the same basis. GAAP reported sales were 2.5% higher than the prior-year quarter's $756.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.05. The 14 earnings estimates compiled by S&P Capital IQ averaged $1.05 per share. GAAP EPS of $1.05 for Q4 were 5.4% lower than the prior-year quarter's $1.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.5%, 90 basis points worse than the prior-year quarter. Operating margin was 17.5%, 230 basis points worse than the prior-year quarter. Net margin was 12.4%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $589.1 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $2.80 billion. The average EPS estimate is $2.64.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 637 members out of 698 rating the stock outperform, and 61 members rating it underperform. Among 211 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 199 give Guess? a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Guess? is outperform, with an average price target of $39.27.
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Seth Jayson owned shares of the following at the time of publication: Guess?. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Guess?. Motley Fool newsletter services have recommended creating a put write position in Guess?. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.