2024-02-19 11:28:39 ET
Summary
- Guess has performed with mediocre growth and quite poor profitability in the past decade, but has seen improved profitability since the start of the pandemic with store closings.
- The company has underlined some growth prospects in the ICR Conference, but I still keep my organic growth estimates low due to Guess' past.
- Guess recently announced plans to acquire rag & bone at an attractive valuation, potentially creating an avenue for growth with Guess' global distribution.
- With the attractive acquisition & improved profitability, Guess' stock seems to have some undervaluation unless the company reverts to a pre-pandemic performance.
Founded in 1981, Guess?, Inc. ( GES ) sells women’s and men’s apparel, underwear, footwear, eyewear, and watches among other items through the Guess brand. The company has a global footprint with a bit over half of Guess’ 1015 directly operated stores operating in the EU and Middle East....
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Guess: Potential Undervaluation With Attractive Rag & Bone Acquisition