The 10-second takeaway
For the quarter ended May 4 (Q1), Guess met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share contracted significantly. GAAP earnings per share contracted significantly.
Margins contracted across the board.
Guess tallied revenue of $548.9 million. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $549.0 million on the same basis. GAAP reported sales were 5.2% lower than the prior-year quarter's $579.3 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 $0.14. The 13 earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. Non-GAAP EPS of $0.14 for Q1 were 53% lower than the prior-year quarter's $0.30 per share. GAAP EPS of $0.12 for Q1 were 60% lower than the prior-year quarter's $0.30 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 36.0%, 460 basis points worse than the prior-year quarter. Operating margin was 2.5%, 430 basis points worse than the prior-year quarter. Net margin was 1.8%, 280 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $625.1 million. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $2.58 billion. The average EPS estimate is $1.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 675 members out of 746 rating the stock outperform, and 71 members rating it underperform. Among 219 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 209 give Guess a green thumbs-up, and 10 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 $27.42.
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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 recommends Guess?. The Motley Fool owns shares of 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.