Brean Slashes Guess? EPS Estimates Ahead of Earnings Wednesdas

Shares of

are up 1.8 percent to $29 in the face of a bearish note from Brean Capital. Eric Beder, analyst at Brean, lowered his fourth quarter 2014 earnings per share estimates to $0.69 from $0.80, well below management's EPS guidance of $0.74-$0.84 and the Street consensus estimate of $0.79. The analyst also lowered the price target from $40 to $36. Beder believes management is “taking the right track by focusing on denim and wooing back their fashion driven 25 to 35 year old female customers.” However, the analyst does not think Guess? is “immune” from inventory issues which “have affected virtually every one of their competitors in terms of discounting and pricing power,” even if the company's current inventory position is “relatively clean.” Guess is scheduled to release fourth quarter results on Wednesday after market close. Beder maintains a Buy rating on the stock.