Contemporary clothing brand Guess (NYSE:GES) will be reporting earnings tomorrow after the bell. Here’s what to expect.
Guess met analysts’ revenue expectations last quarter, reporting revenues of $732.6 million, up 10.2% year on year. It was a softer quarter for the company, with EPS guidance for next quarter missing analysts’ expectations.
Is Guess a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Guess’s revenue to grow 14.8% year on year to $747.4 million, improving from the 2.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.37 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Guess has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.8% on average.
Looking at Guess’s peers in the apparel and accessories segment, some have already reported their Q3 results, giving us a hint as to what we can expect. VF Corp’s revenues decreased 5.6% year on year, beating analysts’ expectations by 1.6%, and Hanesbrands reported a revenue decline of 2.5%, in line with consensus estimates. VF Corp traded up 27% following the results while Hanesbrands was also up 12.5%.
Read our full analysis of VF Corp’s results here and Hanesbrands’s results here.
There has been positive sentiment among investors in the apparel and accessories segment, with share prices up 7.8% on average over the last month. Guess is down 5.1% during the same time and is heading into earnings with an average analyst price target of $21.75 (compared to the current share price of $17.07).
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