Guess (GES) report tomorrow: what to expect

Contemporary fashion brand Guess (NYSE:GES) will report earnings tomorrow after market hours. Here’s what to look for.

Guess beat analyst revenue expectations by 4.3% last quarter, reporting revenue of $891.1 million, up 9% year-over-year. It was a mixed quarter for the company, with impressive growth in analyst earnings estimates, but disappointing earnings guidance for the full year.

Does a Guess transaction count towards earnings? Read our full analysis here, it’s free.

Analysts expect Guess’ revenue to be flat year-over-year at $574.6 million this quarter, an improvement from the 4% decline reported in the same quarter last year. Adjusted loss is expected to be -$0.40 per share.

Most analysts covering the company have reaffirmed their estimates over the last 30 days, suggesting they expect the company to remain on track towards earnings. Over the past two years, Guess has missed Wall Street revenue estimates only once, beating expectations by an average of 2.8%.

Looking at Guess’ competitors in the apparel, accessories and luxury segment, some have already released first-quarter results, which gives us a hint of what to expect. Figs reported flat year-over-year revenue, beating analyst expectations by 1.6%, and Kontoor Brands saw revenue decline by 5.4%, beating analysts’ estimates by 3.8%. After the results, fig shares fell 4.4%, while Kontoor Brands rose 5.7%.

Read our full analysis of Figs’ performance here and Kontoor Brands’ performance here.

Positive sentiment among investors in the apparel, accessories and luxury goods segment, with share prices up an average of 3.2% over the past month. Meanwhile, Guess is down 8.5% and heading toward earnings, with an average analyst price target of $30.3 (versus the current share price of $24.5).

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