Guess (NYSE: GES) stock rallied this morning after the clothing brand and retailer released Q3 earnings, which topped revenue and EPS estimates as the company continues to demonstrate impressive quarterly growth.
Gapping up to premarket gains of 15% before consolidating slightly with the Wednesday open to gains of just over 13%. The company reported an EPS of $0.62 for this quarter, beating the consensus estimate of $0.46. Furthermore, the company has revenue of $643.07M for the quarter compared to predictions of $611.30M, topping the estimate by over $40M.
Guess also recorded a net margin of 7.18% and an equity return of 34.26%. Revenue was also up 13% year-on-year. On a further note, Guess is expecting revenue in Q4 of fiscal 2022 to be down mid-single digits compared to the fourth quarter of fiscal 2020.
Carlos Alberini, CEO of Guess, stated:
“Our e-commerce business continues to grow with sales in North America and Europe in the third quarter, up 15% to last year and 37% to LLY. This is a source of both revenue and profitability growth for our brand and it represents a material go forward opportunity for us. And we continue to make progress on our customer-centricity initiatives including omnichannel capabilities and advanced data analytics and customer segmentation.”
Guess is showing an annual gain of around 33%, with a daily gain of 13.57%. Price is trading at $24.11, moving towards the minor resistance at $24.50. While many retailers are struggling with supply chain issues, Guess has reassured investors today that their sentiment is well-placed.
