Guess? Q3 Earnings on the Horizon: What to Expect From GES Stock?

Core Viewpoint - Guess?, Inc. is expected to report revenue growth of 15.3% year-over-year for Q3 fiscal 2025, with revenues estimated at $751 million, while earnings per share are projected to decline by 12.2% to 43 cents [1][3]. Group 1: Factors Likely to Fuel Results - The company is experiencing strong brand momentum globally and positive customer responses across various product categories [3]. - Key strategies include enhancing organizational culture, focusing on customer needs, and maintaining brand relevance among different consumer groups, including heritage, Millennials, and Generation Z [3]. - The acquisition of rag & bone is anticipated to positively impact Q3 results, alongside strong performances in the wholesale business, particularly in European and American markets [4][5]. Group 2: Expected Challenges - The company faces challenges in a dynamic shopping environment where consumers are more selective and sensitive to pricing [6]. - High operating costs, particularly due to increased freight costs from shipping issues related to the Red Sea crisis, are expected to impact gross margins and profits [6]. - The adjusted operating margin is projected to decline to between 4.7% and 5.8%, down from 8.9% in the same quarter last year [7]. Group 3: Earnings Predictions - The adjusted earnings per share for Q3 are forecasted to be between 33 and 45 cents, indicating a decrease from 49 cents reported in the previous year [7]. - The company holds a Zacks Rank of 3 and an Earnings ESP of 0.00%, suggesting that the model does not predict an earnings beat this time [8].