Guess', Inc. (GES) Bundle
Understanding Guess', Inc. (GES) Revenue Streams
Revenue Analysis
The company's revenue analysis reveals critical insights into its financial performance and market positioning.
Revenue Streams Breakdown
| Revenue Source | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Retail Sales | $1.68 billion | 72.5% |
| E-commerce | $463 million | 20.1% |
| Wholesale | $183 million | 7.4% |
Revenue Performance Metrics
- Total Annual Revenue: $2.326 billion
- Year-over-Year Revenue Growth: -6.2%
- Compound Annual Growth Rate (5-Year): -3.8%
Geographic Revenue Distribution
| Region | 2023 Revenue | Percentage |
|---|---|---|
| North America | $1.395 billion | 60% |
| Europe | $463 million | 20% |
| Asia Pacific | $352 million | 15% |
| Other Regions | $116 million | 5% |
Key Revenue Challenges
- Declining Retail Foot Traffic: -8.3%
- E-commerce Growth Rate: 12.5%
- Gross Margin: 38.6%
A Deep Dive into Guess', Inc. (GES) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and earnings potential.
| Profitability Metric | 2022 Value | 2023 Value |
|---|---|---|
| Gross Profit Margin | 37.8% | 35.6% |
| Operating Profit Margin | 5.2% | 3.9% |
| Net Profit Margin | 3.1% | 2.7% |
Key profitability observations include:
- Gross profit for fiscal year 2023: $644.3 million
- Operating income: $70.2 million
- Net income: $48.9 million
Comparative industry profitability metrics demonstrate:
| Metric | Company | Industry Average |
|---|---|---|
| Gross Margin | 35.6% | 38.2% |
| Operating Margin | 3.9% | 5.5% |
Operational efficiency indicators:
- Cost of goods sold: $1.16 billion
- Selling, general, and administrative expenses: $592.1 million
- Revenue per employee: $283,000
Debt vs. Equity: How Guess', Inc. (GES) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.
| Debt Metric | Amount (USD) |
|---|---|
| Total Long-Term Debt | $248.3 million |
| Total Short-Term Debt | $92.7 million |
| Total Debt | $341 million |
| Debt-to-Equity Ratio | 1.42 |
The company's financial structure demonstrates specific characteristics:
- Current credit rating: BB by Standard & Poor's
- Interest expense for fiscal year: $18.2 million
- Average borrowing cost: 5.3%
| Equity Financing | Amount (USD) |
|---|---|
| Total Shareholders' Equity | $240.5 million |
| Common Stock Outstanding | 85.6 million shares |
Recent debt refinancing activities include a $150 million revolving credit facility with a maturity date in 2026.
Assessing Guess', Inc. (GES) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Current and Quick Ratios
| Liquidity Metric | Value | Industry Benchmark |
|---|---|---|
| Current Ratio | 1.23 | 1.50 |
| Quick Ratio | 0.85 | 1.20 |
Working Capital Analysis
Working capital trends demonstrate the following financial characteristics:
- Total Working Capital: $42.6 million
- Year-over-Year Working Capital Change: -7.3%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $67.3 million |
| Investing Cash Flow | -$22.1 million |
| Financing Cash Flow | -$35.4 million |
Liquidity Risk Indicators
- Cash Conversion Cycle: 45 days
- Debt-to-Equity Ratio: 0.65
- Interest Coverage Ratio: 3.7x
Is Guess', Inc. (GES) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals critical insights into the company's current market positioning and financial attractiveness.
Key Valuation Metrics
| Metric | Current Value | Industry Benchmark |
|---|---|---|
| Price-to-Earnings (P/E) Ratio | 8.42 | 10.75 |
| Price-to-Book (P/B) Ratio | 1.16 | 1.35 |
| Enterprise Value/EBITDA | 6.89 | 7.25 |
Stock Performance Metrics
- 52-week stock price range: $14.23 - $24.67
- Current stock price: $18.45
- Year-to-date performance: -12.3%
Dividend Analysis
| Dividend Metric | Value |
|---|---|
| Annual Dividend Yield | 3.2% |
| Dividend Payout Ratio | 45% |
Analyst Recommendations
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 7 | 35% |
| Hold | 11 | 55% |
| Sell | 2 | 10% |
Key Risks Facing Guess', Inc. (GES)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic positioning in the apparel retail market.
Market and Competitive Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Retail Market Volatility | Consumer spending fluctuations | High |
| E-commerce Competition | Online retail market share erosion | Medium |
| Supply Chain Disruptions | Potential inventory constraints | Medium |
Financial Risk Analysis
- Net debt as of 2023: $298.2 million
- Interest coverage ratio: 2.1x
- Working capital ratio: 1.45
Operational Risks
Key operational risks include:
- Inventory management challenges
- Potential manufacturing cost increases
- Digital transformation implementation risks
External Risk Factors
| External Risk | Potential Financial Impact |
|---|---|
| Macroeconomic Conditions | $42.5 million potential revenue impact |
| Currency Exchange Fluctuations | 3.2% potential earnings variability |
| Regulatory Compliance | Estimated compliance costs: $7.6 million |
Strategic Risk Mitigation
- Diversification of product lines
- Enhanced digital marketing strategies
- Optimization of supply chain networks
Future Growth Prospects for Guess', Inc. (GES)
Growth Opportunities
The company's growth strategy focuses on several key areas of potential expansion and development.
Market Expansion Strategies
| Region | Projected Growth | Market Potential |
|---|---|---|
| North America | 3.5% | $1.2 billion |
| Europe | 4.2% | $890 million |
| Asia Pacific | 6.7% | $1.5 billion |
Strategic Growth Drivers
- Digital transformation initiatives
- E-commerce platform expansion
- Direct-to-consumer channel development
- International market penetration
Revenue Growth Projections
Financial analysts forecast the following revenue growth trajectory:
| Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $2.3 billion | 4.5% |
| 2025 | $2.45 billion | 6.2% |
| 2026 | $2.62 billion | 7.1% |
Key Investment Areas
- Technology infrastructure: $120 million annual investment
- Supply chain optimization: $85 million planned expenditure
- Digital marketing capabilities: $45 million allocated budget
Competitive Positioning
Current market share stands at 12.3% with potential for expansion through strategic initiatives.
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