Why Clothing Company Guess? Shares Are Surging Today

Guess? Inc GES shares are trading higher in the premarket session on Monday.

The company’s Board of Directors has authorized a new share repurchase program of up to $200 million of the common stock.

As of February 3, 2024, the company had no remaining authority to purchase its common stock under the 2021 Share Repurchase Program.

As part of this new program and through a convertible bond exchange transaction, Guess? has agreed to repurchase 326,429 shares of the company’s common stock for $10.3 million.

“Returning capital directly to our shareholders is a high priority for our Board,” said CEO Carlos Alberini.

“We remain committed to enhancing shareholder returns and have a strong capital structure, solid cash flow generation, a powerful and diversified business model and a unique platform to support our Company’s growth initiatives.”

Share repurchases under the authorization may be made on the open market or in privately negotiated transactions.

Guess? has entered into a separate, privately negotiated exchange and subscription agreement with a holder of its 2.00% convertible senior notes due 2024.

The company will exchange approximately $14.6 million in aggregate principal amount of the 2024 notes for about $12.1 million in aggregate principal amount of additional 3.75% convertible senior notes due 2028.

Last month, Guess? reported fourth-quarter earnings of $2.01 per share, which beat the analyst consensus estimate of $1.56 by 28.85%.

Price Action: GES shares are trading higher by 3.59% at $32.60 in premarket on the last check Monday.