Guess? Inc., the iconic brand synonymous with denim and 80s fashion, might be on the verge of a major comeback. While most analysts are focused on the recent quarter's 32.5% earnings surprise (Source: Guess? Inc. Q1 2024 Earnings Report), a deeper dive into the financials reveals a hidden gem that could be the key to unlocking explosive growth: their aggressive share buyback strategy.

Guess's recent financial data paints a picture of a company strategically positioning itself for a value surge. The company boasts a market capitalization of $1.3 billion, placing it firmly in the mid-cap range. Its price-to-earnings ratio of 6.03 is significantly lower than the industry average, indicating that the stock might be undervalued. This is further corroborated by the forward P/E ratio of 9.73, suggesting anticipated earnings growth.

Strong Ownership Signals Confidence

However, it's the "SharesStats" section that holds the most intriguing clue. Guess currently has a "Percent Insiders" ownership of 48.9%, a figure that has been steadily increasing over the past few years. This, coupled with a 71.97% "Percent Institutions" ownership, signifies strong belief in the company's future from both internal and external stakeholders.

The Share Buyback Strategy

The key piece of the puzzle lies in the significant drop in "SharesOutstanding" over recent years. This decline, from 93 million shares in 2009 to approximately 53 million shares currently, indicates a sustained and aggressive share buyback program. Guess has been strategically reducing its share count, effectively concentrating ownership and increasing the value of remaining shares.