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Tag: NYSE: GES

  • Acquisition Bid Sparks Major Gains For Guess (GES) Stock

    Acquisition Bid Sparks Major Gains For Guess (GES) Stock

    After an acquisition offer to take Guess?, Inc. (NYSE: GES) private, the company’s shares saw a significant increase. The stock of GES was trading at $12.16 as of the most recent market check, which is a significant 25.36% gain.

    Proposed Transaction and Financial Backing

    Through its subsidiary, WHP Investments, LLC, WHP Global has formally submitted a non-binding purchase bid to GUESS’ Board of Directors. WHP Global plans to pay $13.00 per share in cash for all of GES’ outstanding shares under the terms of the proposal.

    According to the offer, a combination of third-party debt financing and equity investment would be used to finance the proposed deal. Furthermore, it makes the assumption that important stakeholders—known as the Proposed Rollover Shareholders—will participate in reinvestment or rollover. WHP Global intends to keep Guess? on course in terms of both strategy and operations, making sure that the company’s present business model is not significantly altered.

    Guess? has formed a Special Committee made up of impartial, independent members of its Board of Directors to carefully review the idea. The committee is assessing the offer under the direction of outside legal and financial counsel in order to decide on the appropriate course of action that will best serve the interests of shareholders.

    Strategic Partnerships Strengthen Business Outlook

    Guess? recently announced a major cooperation with WHP Global and Signal Brands in addition to the acquisition bid. The development and growth of Rag & Bone’s handbags and small leather goods category are the main objectives of the five-year license deal.

    Since its beginnings in New York in 2002, rag & bone has earned recognition in the American fashion business, merging traditional workmanship with current cultural themes. It is anticipated that this collaboration would further accelerate the brand’s growth trajectory by utilizing Signal Brands’ experience and market knowledge. Signal Brands has been a Guess? licensee since 1990.

    Long-Term Goals for Growth

    Signal Brands has strengthened its position as a worldwide leader in the handbag industry by extending its partnership with Guess? for a further 15 years. The business sees the combination as a strategic asset that will boost design innovation and market expansion after acquiring Rag & Bone. According to industry commentators, these changes may put GES in a position for long-term growth in the face of shifting market conditions.

  • Guess, Inc. (NYSE: GES) stock jumped in the after-market session as it posts quarterly numbers

    Guess, Inc. (NYSE: GES) stock jumped in the after-market session as it posts quarterly numbers

    Guess’, Inc. (NYSE: GES) shares surged 5.86% in the pre-market session to $17.87 after the Company reported its third-quarter financial results ended October 31, 2020.

    The Organization posted GAAP net earnings of $26.4 million for the third quarter of fiscal 2021, a 112.3 percent raise instead of $12.4 million for the third quarter of fiscal 2020. GAAP diluted earnings per share grew 127.8 percent to $0.41, compared to $0.18 year over year.

    Guess’ reported that in the third quarter of fiscal 2021, its equity buybacks had a favorable effect of $0.03 on GAAP diluted earnings per share. That currency had a negative impact of $0.11 on diluted earnings per share.

    Adjusted net earnings were $37.4 million for the third quarter of fiscal 2021, a 150.7 percent rise compared to $14.9 million years over year. Diluted adjusted earnings per share soared 163.6 percent to $0.58, compared to $0.22 for the same quarter of the previous year. The Corporation reports that in the third quarter of fiscal 2021, its equity buybacks positively affect $0.05 on adjusted diluted earnings per share.

    The coronavirus disease outbreak has been and appears to have a significant impact on the Organization’s financial results. The Company managed to experience lower net sales during the third quarter of fiscal 2021 instead of the same timeframe of the previous year as it remains challenged by lower demand. By that its SG&A costs for the quarter by cost savings, the Company partly compensated for these sales decreases.

    The business launched a new round of government-mandated provisional store closures at the end of the third quarter of fiscal 2021, resulting in the closing of just over 5 percent of our directly managed stores as of October 31, 2020, mainly in Europe. During the fiscal month of November, the number rose to just under 20 percent, but recent store re-openings have helped reduce the percentage of store closing to just under 10 percent as of November 29, 2020.