Sterne Agee Maintains Buy, $50 Target on Guess

Sterne Agee reiterates its Buy rating and $50 Target on Guess Inc.

following highlights from an investor meeting. Sterne Agee says, “We note gross margins in Q3 this year were down 420 bp with 400 bp due to the planned reduction in distribution of the jewelry business so GES will have easier margin comparisons this year as a result. However, the Euro may be a headwind next year as opposed to a tailwind this year. While the conditions in Europe are largely macro related, Guess has added a new Retail GMM for Europe who will collaborate more closely with the President of North American to add more fashion trends as the line is seen as too basic.” GES closed at $28.92 per share on Friday.