- Guess? beat analyst Q2 earnings estimates, but missed on revenue.
- Q2 sales were also up over last year, but not over pre-pandemic amounts.
- Its e-commerce platform could not make up the deficit of fewer store visits.
Shares of Guess? (NYSE:GES) were falling more than 7% in morning trading Thursday after the clothing retailer reported second-quarter earnings after market close on Wednesday.
Guess? reported sales of $628 million versus expectations of $648 million, but profits of $0.91 per share handily outstripped Wall Streets consensus view of $0.70. Although sales were above the year-ago period, they were down 8% compared to pre-pandemic levels.
Image source: Guess?.
Most retailers are reporting better year-over-year results, as thats a low bar to step over compared to a time when most retail stores were closed for a good part of the quarter. But theyre also reporting sales greater than they generated in 2019, indicating their businesses are still growing.
Thats not whats happening with Guess? The retailer also said it wouldnt provide detailed guidance for the third quarter or the full year, but it expects next quarters revenue to be flat to slightly negative, while it will be down by mid single digits for the full year compared to its pre-pandemic results, assuming no more COVID-related closures.
Guess? looks to be struggling to regain its momentum, and while it says its global e-commerce platform has shown gains, they have been completely offset by the declines in the apparel retailers store traffic.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.>
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