Company Of The Day: Guess

+24.18%
Upside
19.81
Market
24.60
Trefis
GES: Guess? logo
GES
Guess?

What?

Guess (NYSE:GES) posted a mixed set of Q4 FY’22 results. While revenue grew by about 23% year-over-year to $800 million, coming in below estimates, adjusted earnings stood at about $1.14 per share, roughly in line with estimates. However, the company’s adjusted operating profit margins came in better than expected at 15.7%.

Why?

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Revenue growth was likely held back by the spread of the omicron variant of Covid-19 which hurt store traffic. However, margins benefited from higher markups, lower discounting, and lower occupancy costs.

So What?

Guess stock jumped almost 9% in Thursday’s trading as investors were likely pleased with the company’s strong margins, which came despite rising inflation.

See Our Complete Analysis For Guess

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

 Returns Mar 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 GES Return -3% -11% 75%
 S&P 500 Return 1% -7% 97%
 Trefis MS Portfolio Return 1% -9% 256%

[1] Month-to-date and year-to-date as of 3/18/2022
[2] Cumulative total returns since the end of 2016

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