Guess?, Inc. GES is likely to register top-line growth when it reports third-quarter fiscal 2025 earnings on Nov. 26. The Zacks Consensus Estimate for revenues is pegged at $751 million, implying a 15.3% increase from the prior-year quarter’s reported figure. The consensus mark for earnings has remained unchanged in the past 30 days at 43 cents per share, though it indicates a 12.2% decline from the figure reported in the year-ago quarter. GES has a trailing four-quarter earnings surprise of 8.7%, on average.

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Factors Likely to Fuel GES’ Upcoming Results

Guess? has been benefiting from robust brand momentum globally and strong customer response to its collections across various product categories. The company has been focused on its core strategies, which include organization and culture, functional capacities, brand relevance with three main consumer groups (heritage, Millennials and Generation Z customers), customer focus, product brilliance and international footprint.

A strong global platform bodes well for the company’s Guess and Marciano businesses. Gains from the rag & bone acquisition (concluded in April 2024) are likely to contribute to third-quarter results. The company’s wholesale business also represents a significant growth driver, with strong performances in the European and American markets.

Guess?’s expansive global footprint, broad channel capabilities, extensive supply chain, diverse category portfolio and strong management team are likely to have acted as upsides in the quarter under review. For the third quarter of fiscal 2025, the company expects revenue growth in the 14.5-16.5% band.

Challenges Expected in GES’ Q3 Release

Guess? continues to operate in a dynamic shopping environment where consumers are increasingly selective and more sensitive to pricing and promotions. A volatile consumer landscape is likely to have impacted the upcoming results. High operating costs are a threat to Guess?. Management expects freight costs to be an added challenge for the gross margin in the second half of the year due to shipping issues from the Red Sea crisis. This is likely to have affected profits in the third quarter. 

For the third quarter of fiscal 2025, the adjusted operating margin is likely to be between 4.7% and 5.8%, down from 8.9% recorded in the third quarter of fiscal 2024. Adjusted earnings per share for the quarter are forecasted in the range of 33-45 cents, suggesting a decline from the 49 cents reported in the year-ago period.

Earnings Whispers for GES

Our proven model doesn’t conclusively predict an earnings beat for Guess? this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Guess? carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the correct combination to beat on earnings this time.

Casey's General Stores CASY currently has an Earnings ESP of +5.22% and a Zacks Rank of 2. The Zacks Consensus Estimate for CASY’s quarterly revenues is pegged at $4.05 billion, which implies a 0.5% decline from the year-ago quarter’s reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

However, CASY’s bottom line is anticipated to increase year over year when it reports second-quarter fiscal 2025 results. The consensus estimate for earnings is pegged at $4.28 per share, indicating 0.9% growth from the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 15.8%, on average.

Abercrombie & Fitch ANF currently has an Earnings ESP of +4.59% and a Zacks Rank of 2. ANF is likely to register bottom and top-line growth when it reports third-quarter fiscal 2024 results. 

The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.18 billion, indicating an 11.8% increase from the figure reported in the year-ago quarter. The consensus estimate for ANF’s earnings is pegged at $2.32 per share, implying 26.8% growth from the year-ago quarter’s actual. Abercrombie & Fitch has a trailing four-quarter earnings surprise of 28%, on average.

Victoria's Secret & Co. VSCO currently has an Earnings ESP of +5.82% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for VSCO’s quarterly revenues is pegged at $1.28 billion, which suggests 1.2% growth from the figure reported in the prior-year quarter. 

The company is also likely to register a bottom-line improvement when it reports third-quarter fiscal 2024 results. The consensus estimate for Victoria's Secret’s bottom line is pegged at a loss of 66 cents per share, indicating a 1.2% improvement from the year-ago quarter. VSCO has a trailing four-quarter earnings surprise of 2.9%, on average.

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Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

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