Earnings Preview: Guess?

Guess? (GES) is expected to report Q4 earnings Wednesday with a conference call scheduled for 4:30 p.m. ET.

Guidance

Analysts are looking for a profit of 57c on revenue of $469.35M. The consensus range is 55c to 61c for EPS, and revenue of $445M to $481M, according to First Call. On January 9, Guess? raised its FY08 EPS guidance to $1.94 to $1.97 from $1.93 to $1.96 vs. First Call consensus of $1.98. A Zacks analyst remains confidence that the retailer will beat estimates on the top and bottom line, especially as management is typically cautious with its guidance.

Analyst Views

The analyst's view is that Guess' fashion-forward merchandise will continue to resonate with its customers, and its international expansion and product accessories will continue to exceed expectations. A Piper Jaffray analyst points out that visibility remains especially strong for Guess?' earnings and notes that its global checks continue to point at strong overseas performance from Guess?. The firm expects Guess? to report U.S. same store sales increasing at an above average rate of 5%. The analyst also likes the fact that Guess? is likely to continue to improve margins as it has several initiatives in place aimed at addressing this issue. On March 10, the Piper analyst said that Guess? is well-positioned to gain share even in the challenging economic conditions overseas.