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Guess? (GES) Queued for Q4 Earnings: Key Things to Note

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Guess?, Inc. (GES - Free Report) is likely to register top and bottom-line declines when it reports fourth-quarter fiscal 2021 results. Though the Zacks Consensus Estimate for earnings has remained stable in the past 30 days at 57 cents per share, it suggests a decline of 53.3% from the year-ago quarter’s reported figure. We note that Guess?’s bottom line has outperformed the Zacks Consensus Estimate by a significant margin in the trailing four quarters, on average.

The consensus mark for revenues is pegged at $657 million, which suggests a decline of 22% from the prior-year quarter’s tally.

Guess, Inc. Price, Consensus and EPS Surprise

Guess, Inc. Price, Consensus and EPS Surprise

Guess, Inc. price-consensus-eps-surprise-chart | Guess, Inc. Quote

Key Factors to Note

Toward the end of the third quarter of fiscal 2021, Guess? started to implement a new round of government-mandated temporary store closures due to the pandemic. This resulted in the closure of more than 5% of its directly-operated stores as of Oct 31. These closures were mainly implemented in Europe. The percentage of store closures increased to slightly below 20% during November. Such temporary store closures are likely to have put pressure on the company’s top-line performance.

Per the last earnings call, the company anticipates sales in the fiscal fourth quarter to have declined in low to mid-twenties. Lower customer traffic in stores and temporary government-mandated store closures, especially in Europe and Canada, due to the coronavirus outbreak are likely to have affected sales. Also, permanent store closures are likely to have negatively impacted the company’s performance.

On the brighter side, Guess? has been benefiting 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. Management said that it is optimistic about online growth in the fiscal fourth quarter. Well, Guess? has been on track with its digital-first initiative and investing in brand building through social media platforms. Further, the company has been focusing on linking brick-and-mortar stores, e-commerce and mobile sales to improve its online operations. This enables customers to reserve merchandise online and pick them up in stores.

Certainly, Guess?’s focus on its customer-centric initiatives, including the global e-commerce strategy, salesforce implementation and omnichannel experience redesign projects, bodes well. Apart from this, the company has been gaining from its cost-saving efforts.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Guess? this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Guess? carries a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat.

Pool Corporation (POOL - Free Report) has an Earnings ESP of +6.37% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Spectrum Brands Holdings Inc. (SPB - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #2.

Columbia Sportswear Company (COLM - Free Report) currently has an Earnings ESP of +27.27% and a Zacks Rank #3.

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