Guess delivers a strong fourth quarter
Los Angeles–based Guess (GES) reported its fiscal 4Q18 results on March 21, 2018. The results related to the three-month period that ended on February 3, 2018. The company topped Wall Street analysts’ earnings and revenue expectations for the quarter.
Guess’s EPS (earnings per share) improved 44% YoY (year-over-year) to $0.62 in fiscal 4Q18. Its total revenue improved 17.5% YoY to $792 million, $36 million more than analysts’ average estimate. While the company delivered a strong performance during the quarter, it also benefited from currency fluctuations and a 14th week during the quarter compared to the same period last year.
Read Parts Two and Three of this series to learn more about the company’s financial performance during fiscals 4Q18 and 2018.
Guess’s management has also issued a solid outlook for the coming fiscal year. Read Part Four to learn about the company’s fiscal 2019 guidance.
Guess is a fashion retailer that designs, markets, and distributes apparel, handbags, watches, footwear, and other accessories through its 1,011 directly operated retail stores and 652 licensed stores worldwide.
The company recorded trailing-12-month sales of $2.4 billion and had a market cap of $1.3 billion as of March 21, 2018. It’s currently trading at a one-year forward PE (price-to-earnings ratio) of 17.7x compared to its three-year average of 23x. Its valuations are in line with those of competitors PVH Corporation (PVH) and Ralph Lauren (RL), which are trading at PEs of 16.6x and 17.5x, respectively. At 19x and 21x, Tapestry (TPR) and VF Corporation (VFC) are more expensive than Guess.
Investors looking for exposure to Guess through ETFs may want to invest in the SPDR S&P Retail ETF (XRT). GES has a weight of ~1% in XRT.