New Guess CEO Outlines Plans For The Future, Eyes Product Expansion In Denim

New Guess?, Inc. GES CEO Carlos Alberini outlined some of his strategic vision for the company after taking the reigns of the company at Cowen’s Future of the Consumer conference in New York City last week.

The Analyst

Cowen analyst John Kernan maintains an Market Perform rating with a $21 price target.

The Thesis

After returning to the company in February, Alberini said last week Guess is forecasting a long-term retail equivalent top-line goal of $7-$9 billion.

The CEO expects to see top-line growth driven by a focus on customers, product category expansion particularly in denim, increased store sales productivity and further digital penetration.

“Management sees further efficiencies to be gained from its infrastructure, supply chain, logistics and distribution investments, along with opportunities to reduce costs,” Kernan wrote in a note. “Management is seeing faster response times available to GES and Mr. Alberini commented on the need to have more discipline on the buying side, which was lacking in Q4:19, leading to an excess inventory position."

When asked what he's most about in his return to Guess, Alberini said he believes strongly in an omni-channel experience and the brand is close to that in some areas but not everywhere around the world.

“The attraction and how successful the brand is with consumer today gives management confidence that tremendous tangible growth remains ahead, particularly overseas,” Kernan wrote.

Price Action

Guess shares traded $18.06 Tuesday afternoon.

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