The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Guess? beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Margins dropped across the board.
Guess? logged revenue of $628.8 million. The 11 analysts polled by S&P Capital IQ expected to see revenue of $621.7 million on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $642.8 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 $0.43. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.44 per share. GAAP EPS of $0.43 for Q3 were 39% lower than the prior-year quarter's $0.71 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 39.4%, 380 basis points worse than the prior-year quarter. Operating margin was 9.2%, 590 basis points worse than the prior-year quarter. Net margin was 5.8%, 450 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $786.8 million. On the bottom line, the average EPS estimate is $0.95.
Next year's average estimate for revenue is $2.62 billion. The average EPS estimate is $2.17.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 721 members out of 786 rating the stock outperform, and 65 members rating it underperform. Among 229 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 217 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 hold, with an average price target of $31.92.
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