Guess? Inc. (GES)
Days of inventory on hand (DOH)
| Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.39 | 4.42 | 4.45 | 4.64 | 4.78 | 3.75 | 3.60 | 3.45 | 3.08 | 2.83 | 3.13 | 3.12 | 3.03 | 3.33 | 3.26 | 3.91 | 4.23 | 3.25 | 3.49 | 3.51 | |
| DOH | days | 67.68 | 82.65 | 82.04 | 78.65 | 76.38 | 97.26 | 101.44 | 105.68 | 118.65 | 129.05 | 116.78 | 117.11 | 120.43 | 109.47 | 111.94 | 93.41 | 86.32 | 112.30 | 104.67 | 104.06 |
February 3, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 5.39
= 67.68
The days of inventory on hand (DOH) ratio for Guess? Inc. has shown some fluctuations over the past few quarters. The trend indicates that the company has been able to manage its inventory levels fairly consistently, with some variation.
The DOH ratio peaked at 129.05 days in the third quarter of fiscal year 2022, indicating a prolonged time it takes for the company to sell off its inventory. This may suggest overstocking or slow-moving inventory during that period. Conversely, the lowest DOH ratio of 67.68 days in the first quarter of fiscal year 2024 indicates a more efficient management of inventory, with quicker turnover.
Overall, Guess? Inc. should aim to strike a balance in inventory management to ensure optimal levels of inventory turnover, minimizing excess inventory costs while meeting customer demand effectively. Continued monitoring and analysis of the DOH ratio will be crucial for the company to make informed inventory management decisions and improve its overall operational efficiency.