Guess (GES) Reports Earnings Tomorrow: What To Expect

Contemporary clothing brand Guess (NYSE:GES) will be reporting earnings tomorrow after market hours. Here's what to look for.

Guess beat analysts' revenue expectations by 4.3% last quarter, reporting revenues of $891.1 million, up 9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but underwhelming earnings guidance for the full year.

Is Guess a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Guess's revenue to be flat year on year at $574.6 million, improving from the 4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.40 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Guess has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.8% on average.

Looking at Guess's peers in the apparel, accessories and luxury goods segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Figs posted flat year-on-year revenue, beating analysts' expectations by 1.6%, and Kontoor Brands reported a revenue decline of 5.4%, topping estimates by 3.8%. Figs traded down 4.4% following the results while Kontoor Brands was up 5.7%.

Read our full analysis of Figs's results here and Kontoor Brands's results here.

There has been positive sentiment among investors in the apparel, accessories and luxury goods segment, with share prices up 3.2% on average over the last month. Guess is down 8.5% during the same time and is heading into earnings with an average analyst price target of $30.3 (compared to the current share price of $24.5).

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