Guess’, Inc. (GES) inclines high to 9.15% in the aftermarket following the announcement of third-quarter results in 2021. However, the last trading session ended at $21.3 with a decrease of 4.61%.
Third Quarter Results 2021 – Were the results up to the mark?
GES announced third-quarter results 2021 on 23rd November 2021. The total net revenue climbed 4.4 percent to $643.1 million in the third quarter of fiscal 2022, compared to $615.9 million in the third quarter of fiscal 2020. Moreover, the net sales climbed by 2.1 percent in constant currency. Not only this, but the company released the GAAP net earnings of $29.9 million with a 140.5% increase. Lastly, the GAAP earnings from operations also rose by about 190.0 percent to $65.7 million.
How was the GES’s third quarter?
The company is really delighted with the results this quarter, which well surpassed the revenue and profits objectives. The quarterly revenues climbed 13% year over year and 4% compared to the pre-pandemic third quarter of the fiscal year 2020. Moreover, the European Wholesale, Americas Retail, and Licensing businesses all outperformed expectations, delivering solid top-and bottom-line results.
Overall, GES achieved a 10% operating margin in the quarter. This owed to good gross margin improvement as a consequence of lesser promotional activity and stronger IMUs.
Quality Control Program by GES
On 5th October 2021, GES announced that it has chosen QIMAone to automate its quality assurance system throughout its entire global supply chain. QIMAone is a supplier relationship management system that links brands and providers. This helps in quality control and assurance data to reduce downtime, improve visibility, and drive continuous improvement. Guess is ensuring that all of its goods are properly sourced and manufactured using quality control best practices by implementing QIMAone.
GES, being a worldwide brand, obtains clothing from hundreds of suppliers in more than 30 countries across Europe, Asia, Africa, and the Americas. Guess does not own its own factories; instead, it collaborates with manufacturers and designers throughout the world to provide a finished product. To retain end-to-end visibility throughout its supplier network under this operational model, the organization must stay linked to its sourcing footprint.
Now what?
In today’s changing supply chain world, integrated, intelligent inspection skills are critical for survival. QIMAone enables organizations like GES to digitally align all stakeholders on a consistent quality control framework. GES may utilize QIMAone to book local inspectors or request manufacturers to do self-inspections with just one click now that they have real-time data on their suppliers. As a consequence, QIMAone is assisting Guess in improving the visibility and agility of its supply chain.
