Guess (GES, $15.05) beats fiscal Q2 estimates; boosts full-year guidance

Guess shares jumped during after-hours Wednesday, after its fiscal second quarter results came in stronger than expected while the company boosted its full-year outlook.

For the three months ending Aug.3, the retailer of clothing and accessories reported adjusted earnings of 38 cents per share, which beat analysts’ estimates of 29 cents. The adjusted EPS figure was also higher than the prior year quarter’s 36 cents.

Revenue increased +5.8% year-over-year to reach $683.2 million in the quarter, surpassing the Street expectations of $671.4 million.

Looking ahead, Guess expects its fiscal full-year 2020 GAAP earnings to sit between $1.18 to $1.26 a share, or an adjusted $1.28 to $1.36. Analysts surveyed by FactSet have forecasted  GAAP earnings of $1.25 a share, or an adjusted $1.32.

Guess projects the full-year revenue to increase 3% to 3.5% in U.S. dollars and 6% to 6.5% in constant currencies.

Chief Executive Carlos Alberini indicated that strong second-quarter results, a favorable inventory position, and expectations for the fall and holiday seasons propelled Guess to raise its guidance.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.