Guess? Inc. (GES)

Net profit margin

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
Net income (ttm) US$ in thousands 198,199 178,772 144,906 129,835 149,610 122,182 130,227 167,327 171,363 173,367 169,863 88,443 -81,229 -72,044 -85,997 -40,317 95,975 39,603 13,738 13,946
Revenue (ttm) US$ in thousands 2,740,394 2,650,836 2,635,539 2,616,264 2,644,409 2,661,222 2,674,342 2,663,471 2,591,631 2,440,151 2,366,365 2,136,280 1,876,529 2,070,328 2,116,988 2,401,669 2,678,109 2,672,982 2,662,445 2,625,096
Net profit margin 7.23% 6.74% 5.50% 4.96% 5.66% 4.59% 4.87% 6.28% 6.61% 7.10% 7.18% 4.14% -4.33% -3.48% -4.06% -1.68% 3.58% 1.48% 0.52% 0.53%

February 3, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $198,199K ÷ $2,740,394K
= 7.23%

Guess? Inc.'s net profit margin has shown fluctuations over the past several quarters. The net profit margin, which represents the percentage of revenue that translates into net income, stood at 7.23% in the most recent period of Feb 3, 2024. This is an improvement from the previous quarter's margin of 6.74% and is indicative of the company's effective cost management and revenue generation.

However, the net profit margin had dropped to 4.96% in the quarter ended Apr 29, 2023, before rebounding slightly to 5.50% in the subsequent period. This fluctuation suggests that Guess? Inc. may have experienced challenges in controlling costs or maintaining revenue during those quarters.

Of particular concern are the negative net profit margins in Jan 30, 2021, and Oct 31, 2020. During these periods, the company's expenses outweighed its revenues, resulting in losses. It is crucial for Guess? Inc. to implement strategies to improve efficiency and profitability to avoid such situations in the future.

Overall, while Guess? Inc. has shown some positive trends in its net profit margin, there is a need for sustained efforts to ensure consistency and profitability in the upcoming quarters.