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Guess? (GES) Looks Solid on Online Business, Strategic Efforts

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The coronavirus outbreak has altered the way consumers shop, making them more inclined toward online shopping. Incidentally, Guess?, Inc.’s (GES - Free Report) impressive digital operations bode well amid such a trend. Moreover, the company is on track with its strategies to drive growth.

Let’s dive deeper.

E-commerce Business: A Key Driver

Guess? is benefitting from its solid digital efforts. Notably, the company’s e-commerce business in North America and Europe increased 19% in the third quarter of fiscal 2021. Prior to this, Guess?’s e-commerce business in these regions rose 9% in the fiscal second quarter. Moreover, management is optimistic about its online growth in fiscal fourth quarter.

Well, Guess? is on track with its digital-first initiative and investing in brand building through social media platforms. Further, the company is focused on integrating brick-and-mortar stores, e-commerce and mobile sales to improve online operations. These efforts have been helping customers reserve merchandise online and pick them up in stores. In order to augment its e-commerce operations, the company is also resorting to data capturing, customer profiling and personalized marketing. Also, it is undertaking robust efforts to elevate its brand.

 

Strategic Growth Efforts

Guess? is on track to enhance operating margin through cost-saving efforts and operational efficiencies. Moreover, it is focusing on customer-centric initiatives that include global e-commerce strategy, salesforce implementation and omnichannel experience redesign projects. In its last earnings call, management stated that it has completed the implementation of the salesforce platform in the United States, Canada and Europe except Russia. It plans to implement the platform in Russia during February 2021. In fact, Guess? is impressed with the performance of the platform that enables better customer experience and improved conversion as well as engagement. Also, it expects to see solid online growth via these platforms.

Guess?, which shares space with Hanesbrands (HBI - Free Report) is progressing well with its customer 360 project to enhance personalization, customer data integration, journey engagement as well as results analysis. In fact, management expects to conclude the full implementation of the Customer 360 project by the end of 2021.

That said, shares of this Zacks Rank #3 (Hold) company have increased 35.7% in the past three months compared with the industry’s growth of 19.5%.

Key Picks

Crocs (CROX - Free Report) , which sports a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 15%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Kontoor Brands, Inc. (KTB - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 6%.

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