Guess?, Inc. GES is in solid shape, courtesy of its impressive digital operations and other strategic growth endeavors. Notably, this Zacks Rank #1 (Strong Buy) stock has surged 53.9% in the past three months compared with the industry’s growth of 24.3%. Moreover, the stock has comfortably outperformed the Zacks Consumer Discretionary sector’s increase of 12% during the same period.
Let’s dive deeper.
E-commerce Business: A Key Driver
Guess? is benefitting from its solid digital efforts. In fact, the company’s online business remained operational amid the coronavirus-induced store closures. Notably, Guess?’s e-commerce business in North America and Europe increased 9% year over year in the second quarter of fiscal 2021. In its last earnings call, management notified that is optimistic about its online growth in the remaining half of 2020. In this regard, the company is increasing its marketing investment, repositioning product offerings and finishing the implementation of Salesforce platform.