Research Desk Line-up: Abercrombie & Fitch Post Earnings Coverage
LONDON, UK / ACCESSWIRE / September 13, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Guess', Inc. (NYSE: GES), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GES, following the Company's reporting of its financial results on August 23, 2017, for the second quarter fiscal 2018. The Company's net revenue increased 5.3% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Abercrombie & Fitch Co. (NYSE: ANF) for due-diligence and potential coverage as the Company reported on August 24, 2017, its financial results for Q2 2017 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Abercrombie & Fitch when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on GES; also brushing on ANF. With the links below you can directly download the report of your stock of interest-free of charge at:
http://protraderdaily.com/optin/?symbol=GES
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Earnings Reviewed
For three months ended July 29, 2017, Guess' net revenue increased 5.3%, or 4.9% on a constant currency basis, to $573.69 million from $544.96 million in Q2 FY17. Net revenue surpassed analysts' expectations of $559.1 million.
During Q2 FY18, Guess' gross profit increased 6.7% to $198.03 million from $185.63 million in Q2 FY17. During Q2 FY18, the Company's gross margin increased 40 basis points to 34.5% of revenue from 34.1% of revenue in Q2 FY17.
During Q2 FY18, Guess' selling, general, and administrative (SG&A) expenses increased 2.4% to $173.55 million from $169.55 million in Q2 FY17.
During Q2 FY18, the Company's operating income increased 49.2% to $23.25 million from $15.58 million in Q2 FY17. For the reported quarter, Guess' operating margin increased 120 basis points to 4.1% of revenue from 2.9% of revenue in Q2 FY17. During Q2 FY18, the Company's adjusted operating income increased 52.3% to $24.48 million from $16.08 million in Q2 FY17. For the reported quarter, Guess' operating margin increased 130 basis points to 4.3% of revenue from 3.0% of revenue in Q2 FY17
During Q2 FY18, Guess' net income decreased 52.8% to $15.22 million on a y-o-y basis from $32.27 million in Q2 FY17. For the reported quarter, the Company's adjusted net income increased 30.4% to $16.05 million from $12.31 million in Q2 FY17. For the reported quarter, the Company's diluted EPS decreased 52.6% to $0.18 from $0.38 in Q2 FY17. During Q2 FY18, Guess's adjusted diluted EPS increased 26.7% to $0.19 from $0.15 in Q2 FY17. The adjusted diluted EPS surpassed analysts' expectations of $0.10.
Guess' Segment Details
Americas Retail - During Q2 FY18, the Americas Retail segment's net revenue decreased 11.2%, or 10.8% on a constant currency basis, to $201.19 million from $226.55 million in Q2 FY17. For the reported quarter, the segment's operating loss was $6.24 million compared to operating loss of $1.21 million in Q2 FY17.
Europe - During Q2 FY18, the Europe segment's net revenue increased 20.1%, or 18.8% on a constant currency basis, to $255.22 million from $212.42 million in Q2 FY17. For the reported quarter, the segment's operating income increased 40.5% to $26.20 million from $18.65 million in Q2 FY17.
Asia - During Q2 FY18, the Barge Business segment's net revenue increased 17.5%, or 17.1% on a constant currency basis, to $62.73 million from $53.41 million in Q2 FY17. For the reported quarter, the segment's operating income was $1.84 million compared to operating loss of $3.36 million in Q2 FY17.
Americas Wholesale - During Q2 FY18, the Americas Wholesale segment's net revenue increased 6.6%, or 6.8% on a constant currency basis, to $32.66 million from $30.63 million in Q2 FY17. For the reported quarter, the segment's operating income increased 34% to $4.86 million from $3.63 million in Q2 FY17.
Licensing - During Q2 FY18, the Licensing segment's net revenue decreased 0.2% to $21.90 million from $21.95 million in Q2 FY17. For the reported quarter, the segment's operating income decreased 2% to $19.42 million from $19.73 million in Q2 FY17.
Balance Sheet
As on July 29, 2017, Guess' cash and cash equivalents decreased 23.8% to $316.54 million from $415.50 million in Q2 FY17.
During Q2 FY18, the Company's net receivables increased 16.1% to $233.64 million from $201.26 million in Q2 FY17.
For the reported quarter, Guess' inventories increased 14.8% to $436.04 million from $379.75 million in Q2 FY17.
During H1 FY18, the Company's cash provided by operating activities was negative $9.67 million compared to negative $17.41 million in H1 FY17.
Outlook
For FY18, Guess' expects net revenue growth to be in the range of 6%-7.5% and operating margin to be in the band of 2.4%-2.8%.
The Company estimates diluted EPS to be in the range of $0.34-$0.42 and adjusted diluted EPS to be in the band of $0.52-$0.60 for fiscal 2018.
Stock Performance
At the closing bell, on Tuesday, September 12, 2017, Guess' stock was marginally down 0.32%, ending the trading session at $15.75. A total volume of 1.19 million shares have exchanged hands. The Company's stock price skyrocketed 37.08% in the last three months, 30.17% in the past six months, and 3.21% in the previous twelve months. Moreover, the stock soared 30.17% since the start of the year. The stock is trading at a PE ratio of 139.38 and has a dividend yield of 5.71%. The stock currently has a market cap of $1.35 billion.
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