Current Report: Guess' Inc.

red and blue light streaks

Photo by Maxim Hopman on Unsplash

Guess' Inc, with the ticker GES, is a small-cap apparel retail store company operating in the consumer cyclical business sector. This is the second of two remaining consumer cyclical candidates for this sort in the Viital folio. It is my first report on Guess' Inc for my Viital portfolio or for any of my previous six folios.

Guess' Inc designs, markets distributes, and licenses contemporary apparel and accessories that reflect European fashion sensibilities under brands including Guess, Marciano, and G by Guess.

The company has five reportable segments: Americas Retail, Americas Wholesale, Europe, Asia, and licensing. It generates maximum revenue from the Europe segment.

As of January 29, 2022, the company directly operated 1,068 retail stores in the Americas, Europe, and Asia.

Its partner's distributors operated an additional 563 retail stores worldwide. The company also offers its products through its retail websites.

Guess', Inc. was founded in 1981 and is headquartered in Los Angeles, California.

Three key data points gauge any dividend equity or fund such as Guess' Inc.

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

GES Price

Guess’s price per share was $17.22 as of yesterday's market close. One year ago its price was $24.17. Thus, GES’s share price fell $6.95 or about 28.75% in the past year.

If GES’s stock trades in the range of $15.00 to $25.00 this next year, its recent $17.21 share price might rise by $0.78 to reach $18.00 by July 13, 2023. My $3.50 upside estimate is based on the average annual price increase in Guess' Inc shares over the past 20 years. It is also $11.25 under the median of one-year price estimates from four analysts covering GES
 

GES Dividends

Guess’s most recently declared a quarterly dividend of $0.225 will be paid on June 24th, to shareholders on record as of June 7th.

Since March 12, 2007, GES paid quarterly variable dividends generally increasing annually until July 5, 2019, when it cut quarterly dividend payments in half. The reinstated forward-looking annual dividend since December 24, 2021, of 0.90 equates to an annual yield of 5.23% as of yesterday's share price of $17.22.
 

GES Returns

Adding the $0.90 Guess' Inc annual forward-looking dividend to my estimated one-year price upside estimate of $0.78 shows a $1.68 potential gross gain, per share, to be reduced by any costs to trade GES shares.

At yesterday's $17.22 closing price, a little under $1000 would buy 58 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.17 per share.

Subtract that maybe $0.17 brokerage cost from my estimated $1.68 gross gain estimate per share results in a net gain of $1.51 X 58 shares = $87.58. for an 8.8% net gain including a 5.23% forward-looking annual dividend yield.

So is that Guess' Inc shows a possible 8.8% net gain including a 5.23% forward-looking dividend yield.

Over the next year, our $1K investment in Guess' Inc shares could generate $52.30 in cash dividends. Of course, a single share of GES stock bought at yesterday's $17.22 price is just over one-third of the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to pick up GES shares based on their forward-looking dividends for the year 2022. The upcoming annual dividend from $1K invested is 3.04 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Guess' Inc. Only time and money invested in this stock will determine its market value.


More By This Author:

Daily Stock Analysis: Nordstrom
Daily Stock Analysis: British American Tobacco P.L.C.
Daily Stock Analysis: BHP Group

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.