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IBDvalueinvestin (99.66)

Guess is down "roughly -40%" since April 26th high.

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July 08, 2010 – Comments (0) | RELATED TICKERS: GES

Why you ask? The exposure to Europe for GES is the answer, Guess has 84 stores in Europe but does that deserve a drop of -40% on less then 20% of the stores being located in Europe? The market only fell -15% while at the same time GES fell -40% or a -25% greater fall then the market averages.

432 stores in the United States and Canada comprising 191 GUESS? retail stores, 107 GUESS? factory outlet stores, 52 GUESS by MARCIANO stores, 44 G by GUESS stores, and 38 GUESS? Accessories stores. The company also operated 84 stores in Europe and 13 stores in Mexico.

 

GUESS? trading at less than 12x its FY12 EPS projection, Brean Murray believes the risk/reward for investors has markedly shifted to the positive side. Firm notes its tgt of $56 translates to 17.3x its FY12 EPS projection; firm believes, as investors move from fear of the foreign to focusing on the superior marginal and growth potential of international markets that GES will regain its luster

 

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