Wedbush Reiterates F11 Outlook On Guess?

According to Wedbush, Guess? (NYSE: GES) F11 outlook is reiterated.

Wedbush said that with a slight Q1 beat, inline Q2 guidance, and reiterated F11 outlook, it anticipates the stock to be up (indicated ~$45 after market) as shares decreased ~9% in the past week. “While we are encouraged by the improvements in NA retail product mix, full-price conversion, and inventory composition (down 6% psf) with current comps down slightly, we remain somewhat cautious on the company's ability to pass through +MTeens input costs increase in H2 (though selective tests in denim, dresses, and outerwear have been positive). Moreover, we view the below-plan +HSD European Fall/Winter backlog as a potential sign of macro slowdown. Although we believe GES offers attractive LT growth from a diversified business, we would prefer to be more constructive on a lower entry point.”

Guess? closed yesterday at $40.10.