Boenning & Scattergood announces investment opinion on Guess?

24 Dec '08

1 min read

Boenning & Scattergood initiated coverage of Guess?, Inc with a Neutral rating. Guess? designs, markets, distributes and licenses Guess products and its brand in a worldwide apparel and accessories collection for men, women and children in over 70 countries. Apparel is mostly marketed under GUESS?, GUESS Kids, YES, G by GUESS, GUESS by MARCIANO and MARCIANO. Our investment thesis includes the following factors:

Long term International Growth and Brand Extensions - Currently GES' primary focus is international expansion. The GES model is based on growth from its partners as they open new licensed stores internationally. There are opportunities for GES to continue its organic international growth in Europe and Asia.

Short-term negatives – slowing global demand, denim cycle and a stronger U.S. dollar. GES' rapid sales and margin growth came to a grinding halt as worldwide growth began to slow in October 2008. For 2009, GES' strategy is to adjust its capital expenditure budget and redirect it for the best returns.

Boenning & Scattergood

More Guess? Inc News... More Apparel/Garments News - United States Of America...