Skip to main content

Market Overview

Guess Sales Looking Comparatively Strong In December

Share:

Guess?, Inc. (NYSE: GES) has been able to achieve the December 2016 pricing results, which outpaced the decline in the aggregate contemporary segment, unlike the earlier months of 2016.

Wunderlich’s Eric Beder maintained a Buy rating on the company, with a price target of $20.

Comparatively Strong

Beder mentioned that compared to the 41.3 percent AUR decline in the year-ago period, the company achieved only a 7 percent decline in pricing in December 2016.

Although December was the fourth successive month in which Guess failed to meet the brand’s long-term AUR level average, the analyst noted that “such results are reasonably notable given management’s prior indication that its redeveloped fashion collections would have altogether lower price points.”

After the Q3 results, management had noted that there was a meaningful buildup of excess inventory at the end of the quarter in the company’s domestic operations, driven by the aggressive rollout of heavy outwear products.

Beder stated that his made the December results appear “more constructive than expected.”

Inventory Overhang

However, the analyst expects the inventory overhang to impact domestic retail results, with accelerating outerwear clearance expected to continue through December and into 2017.

Beder pointed out that the “monthly results were quite strong on a product and segment basis, with a 11.8 percent decline in women’s segment pricing offset by the second consecutive month of YoY AUR growth in the brand’s men’s business.”

Latest Ratings for GES

DateFirmActionFromTo
Mar 2020B. Riley FBRMaintainsBuy
Mar 2020Cowen & Co.DowngradesOutperformMarket Perform
Mar 2020B. Riley FBRMaintainsBuy

View More Analyst Ratings for GES
View the Latest Analyst Ratings

 

Related Articles (GES)

View Comments and Join the Discussion!

Posted-In: Eric Beder WunderlichAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas

Latest Ratings

StockFirmActionPT
PBTruist SecuritiesMaintains88.0
CFRTruist SecuritiesMaintains111.0
FANGTruist SecuritiesMaintains105.0
NPOOppenheimerMaintains95.0
SBNYCredit SuisseMaintains250.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com