Guess? Inc GES shares are trading higher by around 17% after it reported better-than-expected Q2 FY24 results yesterday and revised FY24 guidance.
Net revenue rose 3% Y/Y (reported and constant currencies) to $664.5 million, beating the consensus of $640.5 million.
Revenues from Europe increased 9% Y/Y (+8% in constant currency), Asia grew 19% Y/Y (+22% in constant currency), Licensing increased 13% Y/Y, Americas Retail was down 8% Y/Y, and Americas Wholesale decreased 13% Y/Y in the quarter.
Adjusted operating income rose 17% Y/Y to $65.0 million, with margins expanding to 9.8% from 8.7% a year ago, led by higher initial markups and the favorable business mix.
Adjusted EPS of $0.72 beat the consensus of $0.40.
As of July 29, 2023, cash and cash equivalents stood at $302.6 million.
Dividend: The Board of Directors approved a quarterly dividend per share of $0.30, payable on September 22, 2023, to shareholders of record as of September 6, 2023.
Outlook: In Q3, management expects revenue to grow 2.5%-4.5%, adjusted operating margin of 7.5%-8.3%, and adjusted EPS of $0.55-$0.64 (vs. consensus $0.71).
For FY24, GES revised the outlook for revenue growth to 2.5%-4.0% (from 2.0%-4.0% earlier) and raised expectations for adjusted operating margin to 9.0%-9.4% (from 8.2%-8.8% prior) and adjusted EPS to $2.88-$3.08 (vs consensus of $2.78, from $2.60-$2.90 earlier).
Price Action: GES shares are up 17.4% at $21.50 premarket on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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