NYSE$GES

Guess? Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Second quarter results significantly exceeded earnings expectations, with revenues down 8% compared to Q2 fiscal 2020 but operating margin more than doubled versus pre-pandemic levels.

Guess?, Inc. reported strong second quarter fiscal 2022 results, with revenues reaching $629 million, up 58% compared to Q2 fiscal 2021. The company's operating margin more than doubled versus pre-pandemic levels to reach 13.9%, and earnings per share increased by over 2.5x compared to pre-pandemic levels to finish at $0.91.

  • Revenues for the quarter finished down 8% versus LLY (second quarter of fiscal 2020).
  • Operating margin expanded by over 700 basis points to 13.9% compared to the second quarter of fiscal 2020.
  • Earnings per share of $0.91, versus $0.35 in the LLY period.
  • Board has approved an increase of existing share buyback program to $200 million.

Headline financials

Total Revenue

$629M

Previous: $399M+57.7%
EPS (adj)

$0.96

Previous: -$0.01+9700.0%
Capital Expenditures

-$21.6M

Previous: -$10.1M-113.9%
Free Cash Flow

$21.4M

Previous: $30.6M-30.1%
Net Income

$61.1M

Previous: -$20.4M+399.9%
Operating Income

$87.4M

Previous: -$14.3M+709.0%
Gross Profit

$294M

Previous: $147M+100.0%
Cash & Equivalents

$459M

Previous: $328M+39.9%
Total Assets

$2.46B

Previous: $2.31B+6.3%
Stock-Based Comp

$4.8M

Previous: $4M+20.0%

Revenue & EPS history

Guess? · Revenue · Quarterly

$629M

Q2 2022+57.7%vs Q2 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Guess? · $629M total across 5 segments · Q2 2022

  • Europe
    $323M+56.8%
  • Americas Retail
    $186M+69.3%
  • Americas Wholesale
    $49.9M+145.8%
  • Asia
    $47.8M-4.7%
  • Licensing
    $21.9M+80.6%

Forward guidance

The Company expects revenues in the third quarter of fiscal 2022 to be slightly negative to flat versus the third quarter of fiscal 2020. For the full fiscal year 2022, we expect revenues to be down mid-single digits versus fiscal 2020 and operating margin to reach approximately 10.0%.

Tailwinds

  • Continued momentum in global e-commerce business.
  • Favorable shift of European wholesale shipments from the second quarter into the third quarter.
  • Return to a normal cadence of product development for European wholesale business.
  • Expect revenues to be down mid-single digits versus fiscal 2020.
  • Operating margin to reach approximately 10.0%.

Headwinds

  • Pandemic-related traffic declines.
  • Uncertain impact of the coronavirus (or “COVID-19”) crisis on operations.
  • Not providing detailed guidance for the third quarter or the full fiscal year ending January 29, 2022.
  • Assuming no additional COVID-related shutdowns past the second quarter.
  • Comparisons are versus the pre-pandemic periods from two fiscal years prior in order to provide a more normalized comparison.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 8 quarterly earnings reports

Historical avg

+2.5%

Avg return

Earnings day

+0.3%

Avg return

5 days after

-1.5%

Avg return

30 days after

54%

36 / 67 earnings

Positive

+39.0%

Q4 2020

Best reaction

-32.3%

Q1 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.2%+0.2%-1.7%
Q2 2026+0.2%+0.2%-0.8%
Q1 2026+8.8%+11.1%+16.8%
Q4 2025+9.8%-13.7%+13.5%
Q3 2025-9.1%-9.2%-23.0%
Q2 2025-3.3%-2.3%-5.3%
Q1 2025-0.6%-1.6%-12.9%
Q4 2024+24.5%+17.8%+1.9%
Q3 2024-13.8%
Q2 2024+26.9%
Q1 2024+7.4%
Q4 2023-2.5%
Q3 2023+2.7%
Q2 2023-2.3%
Q1 2023+20.4%
Q4 2022+15.6%
Q3 2022+6.3%
Q2 2022-2.1%
Q1 2022-1.7%
Q4 2021+5.9%
Q3 2021+14.7%
Q2 2021+11.2%
Q1 2021-32.3%
Q4 2020+39.0%
Q3 2020+5.9%
Q2 2020+29.4%
Q1 2020-9.4%
Q4 2019-14.3%
Q3 2019+4.4%
Q2 2019+4.6%
Q1 2019-20.3%
Q4 2018+32.9%
Q3 2018-12.1%
Q2 2018+20.1%
Q1 2018+13.4%
Q4 2017-10.3%
Q3 2017-11.6%
Q2 2017+14.5%
Q1 2017-3.9%
Q4 2016-15.9%
Q3 2016+9.0%
Q2 2016+12.0%
Q1 2016+8.7%
Q4 2015+13.2%
Q3 2015-8.3%
Q2 2015-9.5%
Q1 2015-3.6%
Q4 2014-5.1%
Q3 2014-3.7%
Q2 2014+13.2%
Q1 2014+9.0%
Q4 2013-6.5%
Q3 2013+7.4%
Q2 2013-21.6%
Q1 2013+0.2%
Q4 2012-1.0%
Q3 2012-2.5%
Q1 2011+1.6%
Q2 2012+1.6%
Q1 2012-0.8%
Q4 2009-0.5%
Q4 2011-0.5%
Q3 2011-1.3%
Q3 2010-1.3%
Q2 2011+0.5%
Q4 2010+0.5%
Q2 2010+0.5%

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