Guess? (GES) AI Stock Analysis

• Market Cap: $686.62M
• Dividend Yield: 9.09%
• Average Volume (3M): 552.24K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 1.08
• Revenue Growth: 9.02%
• EPS Growth: -93.19%
• Country: US
• Employees: 13,000
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Apparel - Retail
• EPS (TTM): -0.44
• Shares Outstanding: 52,016,518
• 10 Day Avg. Volume: 449,989
• 30 Day Avg. Volume: 552,244
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 3.02
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 1.58
• Enterprise Value/Ebitda: 15.64
• 1Y Price Target: $13.33
• Price Target Upside: -1.04% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 69 Neutral
• Price Target: $14.50 ▲(7.65% Upside)

The overall stock score of 69 reflects a balance of positive revenue growth and strong wholesale performance, particularly in Europe and the Americas, against challenges in profitability and regional weaknesses, especially in Asia. The technical indicators suggest a bullish trend, while the high dividend yield offers some valuation support. The earnings call and corporate events provide a cautiously optimistic outlook, but strategic adjustments are needed to address ongoing challenges.

Guess? Business Overview & Revenue Model

Company Description

Guess?, Inc. designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children. It operates through five segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing. The company's clothing collection includes jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, activewear, knitwear, and intimate apparel. It also grants licenses to design, manufacture, and distribute various products that complement its apparel lines, such as eyewear, watches, handbags, footwear, kids' and infants' apparel, outerwear, fragrance, jewelry, and other fashion accessories, as well as to wholesale partners to operate and sell products through licensed retail stores. The company markets its products under the GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? 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 brand names. It sells its products through direct-to-consumer, wholesale, and licensing distribution channels. As of January 29, 2022, the company directly operated 1,068 retail stores in the Americas, Europe, and Asia. Its partner's distributors operated an additional 563 retail stores worldwide. The company also offers its products through its retail websites. Guess?, Inc. was founded in 1981 and is headquartered in Los Angeles, California.

How the Company Makes Money

Guess? generates revenue through multiple channels, including wholesale distribution to department stores and specialty retailers, direct-to-consumer sales via its own retail stores, and e-commerce platforms. The company benefits from brand recognition and loyalty, allowing it to command premium pricing for its products. Key revenue streams include sales of apparel and accessories, with denim being a significant category. Additionally, Guess? engages in strategic partnerships and collaborations, which can enhance brand visibility and drive sales. Seasonal promotions and marketing campaigns also play a crucial role in attracting customers and boosting revenue.

Guess? Financial Statement Overview

Summary

Guess? shows promising revenue growth and robust gross margins, indicating strength in sales and cost management. However, profitability metrics reveal challenges in converting revenue growth to net income, with thin net profit margins and low ROE. The balance sheet indicates potential risks from high leverage, while cash flow analysis highlights challenges with free cash flow management.

Income Statement

Guess? has demonstrated a healthy revenue growth trajectory, with a TTM revenue of approximately $3.05 billion, reflecting consistent growth from previous years. The gross profit margin stands strong at approximately 42.97% for the TTM, showcasing efficient cost management. However, the net profit margin is thin at 0.47%, which indicates challenges in translating revenue growth into higher net profits. EBIT and EBITDA margins, at 5.26% and 4.35% respectively, suggest room for improvement in operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 3.3, pointing to a significant reliance on debt financing. The equity ratio stands at 16.89%, indicating a relatively small equity base compared to total assets. Return on equity (ROE) is low at 3.0%, reflecting limited profitability relative to shareholder's equity. These metrics suggest potential risks related to leverage, although the company maintains a stable asset base.

Cash Flow

Guess? faces challenges in cash flow management, highlighted by negative free cash flow in the TTM. The free cash flow growth rate has declined due to increased capital expenditures. Operating cash flow to net income ratio is 4.92, indicating effective cash conversion from net income but overshadowed by negative free cash flow. The negative free cash flow to net income ratio suggests cash flow pressures impacting financial flexibility.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.00B	2.78B	2.69B	2.59B	1.88B
Gross Profit	1.30B	1.22B	1.15B	1.17B	697.10M
EBITDA	178.52M	318.65M	316.39M	364.37M	-890.00K
Net Income	60.42M	198.20M	149.61M	171.36M	-80.74M
Balance Sheet
Total Assets	2.77B	2.59B	2.43B	2.56B	2.47B
Cash, Cash Equivalents and Short-Term Investments	187.70M	360.29M	275.76M	415.56M	469.11M
Total Debt	1.42B	1.16B	1.13B	1.15B	1.25B
Total Liabilities	2.22B	1.85B	1.84B	1.89B	1.90B
Stockholders Equity	505.01M	684.94M	534.11M	622.66M	543.66M
Cash Flow
Free Cash Flow	35.59M	256.17M	79.69M	68.12M	190.17M
Operating Cash Flow	121.68M	330.38M	169.19M	131.64M	209.05M
Investing Cash Flow	-113.16M	-75.14M	-89.87M	-62.28M	-22.16M
Financing Cash Flow	-165.50M	-168.84M	-217.19M	-97.04M	-9.91M

Guess? Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GES, the sentiment is Positive. The current price of 13.47 is above the 20-day moving average (MA) of 13.34, above the 50-day MA of 12.74, and above the 200-day MA of 12.34, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 48.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GES.

Guess? Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKE	79 Outperform	$2.84B	14.30	44.55%	7.02%	-1.08%	-8.20%
URBN	75 Outperform	$6.95B	16.24	19.55%	―	8.38%	52.18%
GAP	73 Outperform	$7.72B	9.02	29.16%	3.04%	1.07%	28.03%
GES	69 Neutral	$686.62M	14.29	2.61%	9.09%	9.02%	-93.19%
AEO	69 Neutral	$2.25B	13.29	12.19%	3.89%	-0.95%	-10.51%
CRI	64 Neutral	$949.79M	6.93	15.95%	10.16%	-1.46%	-41.93%
Sector *	61 Neutral	$17.43B	12.46	-6.01%	3.11%	1.62%	-15.64%

Guess? Corporate Events

Guess? Holds Virtual Annual Shareholders Meeting

On June 10, 2025, Guess?, Inc. conducted its annual shareholders meeting virtually, where a quorum was present with 46,923,773 shares represented. The shareholders voted to elect seven directors, approve executive compensation, and ratify Ernst & Young LLP as the independent auditor for the fiscal year ending January 31, 2026. All director nominees were elected, the executive compensation was approved, and the auditor’s appointment was ratified, indicating strong shareholder support for the company’s governance and financial oversight.