We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Don't Overlook These Top Retail Stocks After Earnings
The retail sector looks poised for a continued rebound with Guess (GES - Free Report) and Signet Jewelers (SIG - Free Report) being the most recent retailers to pass their quarterly earnings expectations on Wednesday.
Keeping track of the Zacks Retail and Wholesale sector scorecard 64% of these stocks have surpassed their bottom line expectations this earnings season and now appears to be a good time to buy Guess and Signet Jewelers stock.
Image Source: Zacks Investment Research
Favorable Q4 Results
Guess shares popped +20% today after the renowned denim jeans and fashion apparel retailer crushed its fourth quarter earnings expectations by 29% and announced a special dividend payout. Earnings rose 15% from the comparative quarter to $2.01 per share versus the Zacks Consensus of $1.55 a share. On the top line, Q4 sales of $891.05 million expanded 9% from a year ago and topped estimates by 4%.
Image Source: Zacks Investment Research
As for Signet Jewelers, its stock was virtually flat on Thursday but the retailer of diamond jewelry and watches was able to flex its robust bottom line. Fourth quarter earnings of $6.73 per share soared 21% from $5.52 a share in the comparative quarter and beat expectations by 6%. This was despite quarterly sales of $2.49 billion missing estimates by -2% and dipping from $2.66 billion a year ago.
Image Source: Zacks Investment Research
Attractive Valuations
Most intriguing about Guess and Signet Jewelers stock is their very reasonable valuations with each having an “A” Zacks Style Scores grade for Value. Notably, GES and SIG trade just under 9X forward earnings which is a pleasant discount to the Zacks Retail & Wholesale market’s 24.3X and the S&P 500’s 21.9X.
Image Source: Zacks Investment Research
Performance Rebound
After today’s spike, Guess shares have now soared +68% over the last year to easily top the benchmark’s +32% while Signet Jewelers' stock is up a very respectable +21%.
Image Source: Zacks Investment Research
Dividends
Getting back to the special dividend announcement by Guess, it will be offering a bonus payout of $2.25 per share payable on May 3 to shareholders on record by April 17. Furthermore, GES has a regular annual dividend yield of 4.62%.
Image Source: Zacks Investment Research
Although Signet Jewlers scaled back its payout during the pandemic the company still offers a 1.02% annual dividend yield which is near the S&P 500’s 1.29% average.
Image Source: Zacks Investment Research
Bottom Line
Retailers are starting to benefit from a more stable inflationary environment with Guess and Signet Jewelers being two retail stocks that investors shouldn’t overlook after their favorable Q4 results. That said, it would be no surprise if the strong price performances of Guess and Signet Jewelers stock continued.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Don't Overlook These Top Retail Stocks After Earnings
The retail sector looks poised for a continued rebound with Guess (GES - Free Report) and Signet Jewelers (SIG - Free Report) being the most recent retailers to pass their quarterly earnings expectations on Wednesday.
Keeping track of the Zacks Retail and Wholesale sector scorecard 64% of these stocks have surpassed their bottom line expectations this earnings season and now appears to be a good time to buy Guess and Signet Jewelers stock.
Image Source: Zacks Investment Research
Favorable Q4 Results
Guess shares popped +20% today after the renowned denim jeans and fashion apparel retailer crushed its fourth quarter earnings expectations by 29% and announced a special dividend payout. Earnings rose 15% from the comparative quarter to $2.01 per share versus the Zacks Consensus of $1.55 a share. On the top line, Q4 sales of $891.05 million expanded 9% from a year ago and topped estimates by 4%.
Image Source: Zacks Investment Research
As for Signet Jewelers, its stock was virtually flat on Thursday but the retailer of diamond jewelry and watches was able to flex its robust bottom line. Fourth quarter earnings of $6.73 per share soared 21% from $5.52 a share in the comparative quarter and beat expectations by 6%. This was despite quarterly sales of $2.49 billion missing estimates by -2% and dipping from $2.66 billion a year ago.
Image Source: Zacks Investment Research
Attractive Valuations
Most intriguing about Guess and Signet Jewelers stock is their very reasonable valuations with each having an “A” Zacks Style Scores grade for Value. Notably, GES and SIG trade just under 9X forward earnings which is a pleasant discount to the Zacks Retail & Wholesale market’s 24.3X and the S&P 500’s 21.9X.
Image Source: Zacks Investment Research
Performance Rebound
After today’s spike, Guess shares have now soared +68% over the last year to easily top the benchmark’s +32% while Signet Jewelers' stock is up a very respectable +21%.
Image Source: Zacks Investment Research
Dividends
Getting back to the special dividend announcement by Guess, it will be offering a bonus payout of $2.25 per share payable on May 3 to shareholders on record by April 17. Furthermore, GES has a regular annual dividend yield of 4.62%.
Image Source: Zacks Investment Research
Although Signet Jewlers scaled back its payout during the pandemic the company still offers a 1.02% annual dividend yield which is near the S&P 500’s 1.29% average.
Image Source: Zacks Investment Research
Bottom Line
Retailers are starting to benefit from a more stable inflationary environment with Guess and Signet Jewelers being two retail stocks that investors shouldn’t overlook after their favorable Q4 results. That said, it would be no surprise if the strong price performances of Guess and Signet Jewelers stock continued.