Guess? Inc. (GES)

Operating profit margin

Jan 31, 2025 Feb 3, 2024 Jan 31, 2024 Jan 31, 2023 Jan 28, 2023
Operating income US$ in thousands 173,813 263,277 263,277 159,313 248,173
Revenue US$ in thousands 2,995,270 2,749,310 2,776,530 2,687,350 2,640,650
Operating profit margin 5.80% 9.58% 9.48% 5.93% 9.40%

January 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $173,813K ÷ $2,995,270K
= 5.80%

The operating profit margin of Guess? Inc. has shown fluctuations over the past few years. In January 2023, the operating profit margin was at 9.40%, reflecting a healthy level of profitability. However, by January 2024, the margin decreased to 5.93%, indicating a decline in operating efficiency.

Subsequently, there was a notable improvement in the operating profit margin, reaching 9.48% in January 2024 and further increasing to 9.58% in February 2024. These improvements suggest that the company was able to streamline its operations and enhance profitability.

Unfortunately, by January 2025, the operating profit margin declined again to 5.80%, which could be a cause for concern as it may indicate challenges in controlling costs or generating sufficient revenue to cover operating expenses.

Overall, the fluctuating trend in Guess? Inc.'s operating profit margin highlights the importance of closely monitoring operational efficiency and cost management to sustain and enhance profitability in the competitive retail industry.