Guess?, Inc. (NYSE:GES) shares fell as an analyst warned that the company will face less traffic than usual.
The retail segment related to the retailer includes clothing for men and women, perfumes, jewelry, shoes, watches and other accessories. An analyst at Mizuho issued a statement regarding what the future holds for Guess?
The firm unveiled a note that said there will be weakness in America’s retail and wholesale segment, which is the opposite of what’s going on in Asia and Europe, where apparel retail sales are on the up and up.
Mizuho’s Thursday note lowered Guess? from a “neutral” to an “underperform” and added that the firm will “continue to question the strategy to rejuvenate the Americas segment and the multi-year retail store rollout strategy in Asia and Europe.”
In addition to the reduced rating, the retailer’s price target has been lowered from $14 to $10. All in all, 14 firms have rated GES stock and consider it a “Hold,” with eight analysts rating it a “Hold,” to go along with a price target of $16.62.
Guess? will report its next earnings report next week, on Wednesday, March 15 after the market closes. The consensus earnings per share forecasts has GES at 42 cents per share, which is 15 cents lower than what it earned the previous year.
GES shares fell 5.4% Thursday.