Why Guess? Stock Jumped 16% at the Open Today
Shares of fashion retailer Guess? (NYSE: GES) rose as much as 16% in the first minutes of trading on Nov. 24. By 10:30 a.m. ET the stock had trimmed that gain a bit, but was still sitting with an impressive advance of 13%. It was the company's after-the-close earnings release on Nov. 23 that likely got investors excited. The fiscal third quarter of 2022 was, overall, a pretty good one, but what management didn't have to talk about may be just as important as what it did talk about.
On a day when The Gap (NYSE: GPS) saw its shares plunge at the open, Guess? shares somehow managed to rise. Here's the big difference: Management of The Gap, during its quarterly earnings call, had to tell Wall Street that supply chain issues led to $300 million in lost sales. Guess?, on the other hand, talked about being in a "strong" inventory position, that customers were "responding well" to its assortment, and that it was seeing "strong gross margin expansion" despite supply chain headwinds. Investors have been hyper focused on supply chain problems lately, punishing companies that have been hit by the issue. That Guess? managed to avoid a supply chain problem was likely a big help today.
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Source Fool.com