Guess?, Inc. (NYSE:GES) is a renowned global fashion brand set to release its quarterly earnings on April 3, 2025. With Wall Street analysts projecting an earnings per share (EPS) of $1.41 and revenues of approximately $908 million, the company’s financial health is under scrutiny.
Here are three key insights from the earnings forecast:
– The consensus estimate for GES’s EPS has decreased by 2.7%, now standing at $1.41 per share, indicating a significant 29.9% drop year-over-year.
– Guess? faces challenges such as weak consumer sentiment and rising freight costs, with a trailing four-quarter negative earnings surprise of 8.7% on average.
Guess?, Inc. is anticipated to witness a slight increase in its top line for the fourth quarter, with projected revenues of $899 million, reflecting a 0.9% growth from the previous year. For fiscal 2025, the company’s revenues are estimated to reach $2.96 billion, indicating a 6.7% increase from the prior year.
The company is navigating through several challenges, including weak consumer sentiment, rising freight costs, and broader economic pressures. Despite these hurdles, Guess? has managed to maintain a price-to-earnings (P/E) ratio of approximately 6.02, showcasing a relatively low valuation compared to its earnings. The price-to-sales ratio stands at about 0.19, suggesting that the stock is trading at a low price relative to its sales.
However, the company’s debt-to-equity ratio is about 3.27, indicating a higher level of debt compared to its equity, which could be a point of concern for investors. As the earnings release date approaches, analysts suggest that the upcoming report could significantly influence Guess?’s stock price in the near term. Investors and stakeholders are keenly awaiting the results to gauge the company’s financial health and future prospects.