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Things to Keep in Mind Before Guess?'s (GES) Q1 Earnings

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Guess?, Inc. (GES - Free Report) is likely to register top-and bottom-line improvement when it reports first-quarter fiscal 2022 results on May 27. The Zacks Consensus Estimate for the bottom line has narrowed from a loss of 27 cents per share to a loss of 20 cents in the past seven days. The projection shows significant improvement from a loss of $1.81 per share reported in the year-ago quarter. 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 estimate for quarterly revenues is pegged at approximately $495.4 million, which calls for a surge of 90.4% from the prior-year quarter’s reported number.

Guess, Inc. Price and EPS Surprise

 

Guess, Inc. Price and EPS Surprise

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

 

Key Factors to Note

Guess? has been benefiting from its solid digital efforts. In this regard, the company is on track with its digital-first initiative and investing in brand building through social media platforms. Further, it has been undertaking efforts such as better data capturing, improved customer profiling, personalized marketing and relationship management to improve digital platform. Moreover, Guess?’s focus on its core strategies like organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint bodes well. Apart from this, the company is gaining from its saving efforts amid escalated costs related to e-commerce growth.

Toward the end of third-quarter fiscal 2021, Guess? had begun a new round of government-mandated temporary store closures due to the pandemic. In this regard, nearly 77% of the company’s stores were open as of Mar 27, 2021. Markedly, the company offered revenue growth guidance for the to-be-reported quarter from the pre-pandemic level (fiscal 2020) to offer a relatively normalized comparison. Guess? anticipates first-quarter fiscal 2022 net revenues decline of high single digits from fiscal 2020 level, owing to the pandemic-induced store closures and reduced traffic. Well, these factors are likely to have had been countered by strength in the company’s global e-commerce business and favorable timing shift of European shipments from the fiscal fourth quarter to the first quarter.

What the Zacks Model Unveils

Our proven model predicts 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? has a Zacks Rank #1 and an Earnings ESP of +20.00%.

More Stocks With Favorable Combinations

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

Pool Corporation (POOL - Free Report) currently has an Earnings ESP of +2.54% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

e.l.f. Beauty, Inc. (ELF - Free Report) currently has an Earnings ESP of +17.86% and carries a Zacks Rank #3.

Ulta Beauty, Inc. (ULTA - Free Report) currently has an Earnings ESP of +10.22% and carries a Zacks Rank #3.

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Ulta Beauty Inc. (ULTA) - free report >>

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Pool Corporation (POOL) - free report >>

e.l.f. Beauty Inc. (ELF) - free report >>