- The stock price of Guess?, Inc. (NYSE: GES) increased by over 12% during intraday trading today. This is why it happened.
The stock price of Guess?, Inc. (NYSE: GES) increased by over 12% during intraday trading today. Investors are responding positively to what the company announced in its fiscal year 2022 third quarter results.
These are the highlights:
— Q3 Fiscal 2022 Revenues Reached $643 Million, Up 13% Compared to Q3 Fiscal 2021, Up 4% Compared to Q3 Fiscal 2020
— Delivered Operating Margin in Excess of 10.0%
— Q3 EPS of $0.45 and Adjusted EPS of $0.62
— Raises Full-Year Outlook for Operating Margin to 11.0%
— Doubles Quarterly Cash Dividend from $0.1125 to $0.225 per Share on the Company’s Common Stock
“We are very pleased with our performance this quarter, which exceeded our expectations for revenues and earnings. Our revenues for the quarter increased 13% versus last year and were up 4% compared to the third quarter of fiscal year 2020, pre-pandemic. The better performance than expected was driven by our European Wholesale, Americas Retail and Licensing businesses, which posted strong top and bottom line results across the board. All in all, we delivered a 10% operating margin in the period, driven by strong gross margin expansion, as a result of lower promotional activity and improved IMUs in spite of increased freight costs related to the supply chain disruptions experienced in the market.”
“We are confident in our plans for the holiday business. Our inventory position is strong, and our customers are responding well to our assortments. Based on our progress, we now expect to deliver an operating margin of 11.0% in the current year, double that of fiscal 2020, pre-pandemic. I am very pleased with our performance for the current year but I am even more excited with what lies ahead for us. I believe that we are at an inflection point at Guess and I am very confident our business is well positioned to generate superior returns in the future. We will continue to prioritize returning value to our shareholders and announced today that our Board has approved to double our quarterly cash dividend from $0.1125 to $0.225.”
— Carlos Alberini, Chief Executive Officer
“I am very pleased with the progress we have made during the last few months with our brand elevation strategy. For the first time in our Company’s history we have one global line of products across all categories and our products are highly elevated, with a strong focus on quality and sustainability. The Guess brand is enjoying strong momentum worldwide, and we see a big opportunity to gain market share and grow in multiple markets and product categories.”
— Paul Marciano, Co-Founder and Chief Creative Officer
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