Guess? Inc. (GES)
Profitability ratios
Return on sales
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Gross profit margin | 43.43% | 44.47% | 44.03% | 42.75% | 43.50% |
| Operating profit margin | 5.80% | 9.58% | 9.48% | 5.93% | 9.40% |
| Pretax margin | 2.69% | 8.13% | 8.50% | 7.37% | 7.05% |
| Net profit margin | 2.02% | 7.21% | 7.14% | 5.57% | 5.67% |
Guess? Inc.'s profitability ratios demonstrate fluctuations over the years. The gross profit margin has shown a slight increase from 42.75% in January 31, 2023, to 43.43% in January 31, 2025. This indicates the company has been able to maintain a reasonable level of profitability after deducting the cost of goods sold.
The operating profit margin, however, has varied more significantly, with a low of 5.80% in January 31, 2025, compared to 9.40% in January 28, 2023. This indicates fluctuations in the company's ability to generate profits from its core operations.
The pretax margin has also shown a fluctuating trend, with a peak of 8.50% in January 31, 2024, followed by a decline to 2.69% in January 31, 2025. This suggests that Guess? Inc. has faced challenges in maintaining consistent profitability before accounting for taxes.
Lastly, the net profit margin has shown a similar pattern of fluctuation, with a peak of 7.21% in February 3, 2024, and a decrease to 3.49% in January 31, 2025. This indicates that the company's bottom-line profitability has varied over the years, possibly due to changes in expenses or revenues.
Overall, Guess? Inc.'s profitability ratios show a mixed performance, with the gross profit margin showing relative stability, while the operating, pretax, and net profit margins have experienced more significant fluctuations, reflecting changing profitability dynamics within the company.
Return on investment
| Jan 31, 2025 | Feb 3, 2024 | Jan 31, 2024 | Jan 31, 2023 | Jan 28, 2023 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 6.28% | 10.17% | 10.17% | 6.57% | 10.23% |
| Return on assets (ROA) | 2.18% | 7.65% | 7.65% | 6.17% | 6.17% |
| Return on total capital | 20.08% | 35.83% | 37.57% | 47.73% | 37.31% |
| Return on equity (ROE) | 10.98% | 28.94% | 28.94% | 28.01% | 28.01% |
Guess? Inc.'s profitability ratios provide useful insights into its financial performance over the past few years.
Firstly, the Operating Return on Assets (Operating ROA) shows the company's ability to generate profits from its operational assets. From January 2023 to February 2024, Guess? Inc. maintained a relatively stable Operating ROA ranging from 6.28% to 10.23%, reflecting the company's efficiency in utilizing its assets to generate operating income.
Secondly, the Return on Assets (ROA) represents the overall profitability of Guess? Inc. relative to its total assets. The trend in ROA shows a slight increase from 6.17% in January 2023 to 7.65% in February 2024, and then a decline to 3.78% by January 2025. This indicates a fluctuation in the company's ability to generate profits from its total assets over the period.
Furthermore, the Return on Total Capital ratio reflects the return generated from both equity and debt capital employed by Guess? Inc. The data shows a significant decrease in Return on Total Capital from 47.73% in January 2023 to 9.16% in January 2025. This suggests a decreasing efficiency in generating returns from the total capital structure of the company.
Lastly, the Return on Equity (ROE) measures the profitability of the company from the perspective of its shareholders. Guess? Inc.'s ROE remained relatively stable around 28% from January 2023 to February 2024, before decreasing to 18.99% by January 2025. This indicates that the company's ability to generate profits for its shareholders has declined over the years.
In conclusion, while Guess? Inc. has shown consistency in its Operating ROA and ROE, there are fluctuations in the ROA and a significant decline in the Return on Total Capital and ROE over the period, suggesting potential challenges in maintaining profitability and efficiently utilizing capital resources.