Earnings Analysis: Guess? Inc. (NYSE:GES)

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Earnings Quality

GES-US has reported relatively strong net income margin for the last twelve months (7.7% vs. peer median of 6.4%). This strong margin performance was accompanied by a level of accruals that was around peer median (4.2% vs. peer median of 4.2%) suggesting that the reported net income is supported by a reasonable level of accruals.

GES-US’s accruals over the last twelve months are positive suggesting a buildup of reserves. However, this level of accruals is also around the peer median and suggests the company is recording a proper level of reserves compared to its peers.

Trend Charts

Graph of Revenues Trend for Guess? Inc. (NYSE:GES)
Graph of Revenues Trend for Guess? Inc. (NYSE:GES)
Graph of Net Margin Trend for Guess? Inc. (NYSE:GES)
Graph of Net Margin Trend for Guess? Inc. (NYSE:GES)
Graph of Accruals Trend (% revenues, Quarterly) for Guess? Inc. (NYSE:GES)
Graph of Accruals Trend (% revenues, Annual or TTM) for Guess? Inc. (NYSE:GES)

Company Profile

Guess?, Inc. designs, markets, distributes and licenses a lifestyle collections of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. Its apparel is marketed under numerous trademarks including GUESS, GUESS?, GUESS U.S.A., GUESS Jeans and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS, GUESS by MARCIANO and Gc. The company operates its business through five segments: North American Retail, Europe, Asia, North American Wholesale and Licensing. The North American Retail segment includes the company’s retail operations in North America. The Europe segment includes the company’s wholesale and retail operations in Europe and the Middle East. The Asia segment includes the company’s wholesale and retail operations in Asia. The North American Wholesale segment includes the company’s wholesale operations in North America and export sales to Latin and South America. The Licensing segment includes the worldwide licensing operations of the company. The company was founded by Maurice Marciano in 1981 and is headquartered in Los Angeles, CA.

Disclaimer

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This article was originally written by abha.dawesar, and posted on CapitalCube.

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