Guess stock gains on strong sales, sunny full-year forecast

May 26, 2022 6:51 AM ETGuess', Inc. (GES)By: Kevin P. Curran, SA News Editor2 Comments

Guess Jeans

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A strong outlook on sales for Guess? (NYSE:GES) is garnering increased confidence in upscale retail on Thursday.

For its fiscal first quarter of 2021, the Los Angeles-based luxury retailer notched $593 Million in sales, with an adjusted operating margin of 7% and adjusted EPS of $0.24. The consensus estimates for EPS and revenue prior to the print stood at $0.29 and $584.39 million, respectively.

“Our Company’s revenues finished up 14% in U.S. dollars and 21% in constant currency with Europe, Americas Wholesale and Licensing performing better than expected,” CEO Carlos Albertini commented. “Overall, we delivered strong gross margin performance and leveraged expenses effectively, contributing to an expansion in operating margin and a significant increase in earnings from operations compared to the prior year.”

He added that the company expects continued strong performance, anticipating 4% revenue growth and an operating margin above 10% for the full year.

Shares gained over 3% at pre-market highs on the optimistic outlook.

“While the environment remains challenging, we are well positioned to grow and capitalize on our diversified business model and the strong momentum of our Guess and Marciano brands,” Albertini concluded.

The Marciano brand in particular is an important piece given recent activist campaigns to spin off the brand.

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