Piper Jaffray's Estimates for Guess? (GES) Remain Largely Unchanged Post 3Q; Reiterates Neutral

Piper Jaffray maintained a Neutral rating on Guess (NYSE: GES), and cut the price target to $18.00 (from $19.00), following the company's 3Q earnings report. Guess reported Q3 EPS of $0.15 vs. the Street's $0.11 estimate. Revenue declined 11.7% to $521M, but was ahead of $516M estimates.

Analyst Erinn Murphy commented, "We maintain our Neutral on GES following the Q3 report in which EPS was $0.15 vs. our $0.12 estimate and sales were $521M vs. our $516M estimate. Mgmt took up the low-end of its FY16 EPS guidance range–moving from $0.89-$1.02 to $0.93-$1.02–which suggests Q4 EPS in the range of $0.53-$0.62, bracketing our $0.57 estimate. Overall, trends were mixed by region. NA Retail, Asia and Licensing missed our sales estimates. NA retail comps were down 6% vs. our down 2% estimate. Europe, however, bested expectations with LDD comps in retail albeit with overall revenues still down led by wholesale. NA wholesale saw slightly better revenue than we expected albeit on deteriorating operating margins--down 300 bps Y/Y. We are keeping our estimates largely unchanged but our PT moves to $18 ($19 prior) tied to the cash assumptions used in our justification."

For an analyst ratings summary and ratings history on Guess click here. For more ratings news on Guess click here.

Shares of Guess closed at $19.54 yesterday.

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