Guess? is a company that makes clothes and shoes. They told people how much money they made in the last few months. Some things went up, like how much money they made from selling clothes, but other things went down, like how much money they made from making clothes. Overall, they made a little less money than they did last year. But they are still planning to open new stores and make more clothes and shoes. Read from source...

The article mentions mixed Q2 results for Guess? Inc., with a revenue increase YoY but a decline in earnings compared to the previous year's quarter. The company has lowered its fiscal 2025 revenue and earnings outlook, reflecting the weaker consumer environment. However, the company is managing its costs and inventories while investing in marketing, new stores, and infrastructure to support business growth. The acquisition of rag & bone is likely to have contributed to the positive performance.

The article provides a snapshot of the company's financial health and shareholder-friendly moves. The company's cash and cash equivalents amount to $218.9 million, and long-term debt and finance lease obligations are nearly $187.8 million. Stockholders' equity stands at around $491.2 million. The company announced a quarterly dividend of 30 cents per share on its common stock, payable on Sep. 27, 2024, to shareholders on record as of Sep. 11.

In the future, the company projects a revenue growth of between 9.5% and 11%, down from the previous range of 10.7-12.7%. The adjusted operating margin is expected to be between 7.3% and 7.8%, revised from the earlier forecast of 7.7% to 8.5% for the fiscal 2025. The GAAP operating margin is anticipated to range from 7.2-7.7% compared with the previous estimate of 7.3-8.1%.

For third-quarter fiscal 2025, management expects revenue growth in the 14.5-16.5% band. Adjusted operating margin is likely to be between 4.7% and 5.8%. On an adjusted basis, EPS are forecast in the range of 33-45 cents. On a GAAP basis, EPS are anticipated in the range of 28-38 cents.

The article concludes by mentioning three promising stocks: Wolverine World Wide (WWW), Kontoor Brands (KTB), and Steven Madden (SHOO).

neutral

Let's dissect this article:
In this article, we are looking at the second-quarter fiscal 2025 results of Guess? Inc. (GES). The company has posted mixed results, with the top line increasing year over year but the bottom line declining from the year-ago quarter's reported figure and missing the consensus mark. The company is lowering its fiscal 2025 revenue and earnings outlook to reflect the current weaker consumer environment. The article also highlights GES's financial health, shareholder-friendly moves, and segmental performance.

Some key takeaways from this article are:
- GES's adjusted earnings of 42 cents per share missed the Zacks Consensus Estimate of 44 cents, while the bottom line declined 42% from earnings of 72 cents in the year-ago quarter.
- The net revenues amounted to $732.6 million, up 10% year over year. On a constant-currency (cc) basis, net revenues rose 13%.
- The company's gross margin contracted to 43.7% from 44.3% reported in the year-ago quarter. As a percentage of sales, SG& A expenses increased to 38.7% from 34.6% in the prior-year quarter's level.
- GES's financial position remains strong, with cash and cash equivalents of $218.9 million and shareholders' equity of around $491.2 million.
- The company has repurchased nearly 2.3 million shares for $50 million during the fiscal second quarter.
- For the fiscal 2025, GES forecasts revenue growth to be between 9.5% and 11%, down from the previous range of 10.7-12.7%. The adjusted operating margin is expected to be between 7.3% and 7.8%, revised from the earlier forecast of 7.7% to 8.5%.
- Shares of GES have declined 13.5% in the past three months compared with the industry's 2.8% decline.

In summary, the article gives us a neutral sentiment, as it highlights both the positives and negatives of GES's Q2 fiscal 2025 results.

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