GES Stock: Combining Style with Inflation-Crushing Dividend Income
May 6, 2025
Why Guess? Inc Shouldn’t Be Overlooked
When income investors think about dividend stocks, clothing companies like Guess? Inc (NYSE:GES) aren’t usually at the top of their list. And, rightfully so. Most investors tend to associate high-yield dividend stocks with sectors like utilities and consumer staples or with real estate investment trusts (REITs). Fashion retailers, on the other hand, are often seen as cyclical and volatile.
But Guess? shouldn’t be overlooked.
Despite operating in a competitive industry that’s extremely significantly cyclical in nature, the company has rewarded GES stockholders with a solid dividend for years. Its strong brand, global footprint, and streamlined operations have all helped it keep rewarding investors.
There have also been some developments that could provide GES stock owners with robust gains.
What Does Guess? Inc Do?
Headquartered in Bioggio, Switzerland, Guess? designs, markets, distributes, and licenses lifestyle collections of apparel and accessories for men, women, and children.
The company operates through five segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing.
Its clothing collection includes jeans, pants, skirts, dresses, shorts, blouses, shirts, jackets, activewear, knitwear, and intimate apparel. Guess? also grants licenses to design, manufacture, and distribute various products that complement its apparel lines. These products include eyewear, watches, handbags, footwear, fragrance, jewelry, and other accessories.
Guess? markets its products under the “GUESS,” “GUESS?,” “GUESS U.S.A.,” “GUESS Jeans,” “GUESS? and Triangle Design,” “MARCIANO,” “Question Mark and Triangle Design,” a stylized G and a stylized M, “GUESS Kids,” “Baby GUESS,” “YES,” “G by GUESS,” “GUESS by MARCIANO,” and “Gc” brand names.
The company sells its products through direct-to-consumer, wholesale, and licensing distribution channels and via retail websites. (Source: “Profile,” Yahoo! Finance, last accessed April 29, 2025.)
Could Upside Here Be Huge?
GES stock could be setting up for some massive upside.
Why do I think so?
Well, not too long ago, Bloomberg reported that Authentic Brands Group is considering making a takeover bid for the clothing company. This bid is set to rival the offer Guess? received in March from WHP Global of $13.00 per share. (Source: “Guess gains as Bloomberg reports Authentic Brands mulls rival bid,” Yahoo! Finance, April 24, 2025.)
Assuming that Guess? does accept the $13.00 offer, it would mean a capital gain of just over 15% from the current price for those who own GES stock.
Chart courtesy of StockCharts.com
But this is just one piece of the puzzle.
Here’s what you need to know: investors have been betting strongly against GES stock. As per the most recent data, 20.52% of the entire float (that’s shares available for trading) was short. (Source: “Statistics,” Yahoo! Finance, last accessed April 29, 2025.)
This matters because a takeover bid and general good news surrounding Guess? could scare bearish investors. And the only way bearish investors can exit their positions is by buying back their shares. Since there are massive short positions against GES stock, a mass exodus of bearish investors could make the upside quite a bit sweeter.
Institutional Investors Loading Up on GES Stock
With the good news around GES stock and some potential takeover noise, institutional investors seem to be loading up.
In the fourth quarter of 2024, Guggenheim Capital LLC, for example, raised its GES stock holdings by 123.8%, according to recent U.S. Securities and Exchange Commission filings. The fund now owns 42,022 shares.
Other institutions have also increased their holdings.
Vanguard Group raised its position in GES stock by 7.6% during the fourth quarter of 2024. It now owns over 3.27 million shares.
Charles Schwab Investment Management raised its stake in shares of Guess? by close to 14% in the fourth quarter of 2024 to over 1.38 million shares. (Source: “Guggenheim Capital LLC Buys 23,247 Shares of Guess?, Inc. (NYSE:GES),” MarketBeat, April 29, 2025.)
Why do institutional investors matter?
Well, they provide support for the stock, as they tend to stick around for the long term.
Robust Dividends with This Clothing Pick
Beyond all of this, GES stock continues to offer healthy dividends.
At the current price, it has an inflation-crushing dividend yield of 10.33%, paying $1.20 per share on an annual basis.
The clothing company has raised its dividend over time as well. Guess? raised its quarterly dividend to $0.30 per share in early 2023 from $0.225 per share.
In April 2024, it paid a special dividend of $2.55 per share as well.
The Lowdown on GES Stock
GES stock belongs to an industry that’s known for being volatile and cyclical. However, it is presenting a great opportunity right now; there could be robust capital appreciation, the company is attracting institutional buyers, and it offers a frothy dividend.
Sometimes you must look at some unusual places for opportunities, which is why I think GES stock could be a very interesting income play.
