BofA/Merrill Lynch Slashes PT, Estimates on Guess (GES)

BofA/Merrill Lynch analyst Robert Ohmes lowered estimate and his price target on Underperform-rated Guess (NYSE: GES) to $20.00 (from $23.00) saying the apparel malaise continues into the 2nd-half.

The firm is lowering estimates to be in-line with GES F15 EPS guidance range of $1.05-$1.20 (~60% lower than F14 $1.91) and to reflect: (1) N. American comps trending –MSD for F3Q15 (vs. -4.4% comps FX-neutral in F2Q15) and expected to remain –MSD for the full year; (2) low-double-digit declines in Europe Fall/Winter wholesale backlogs; and (3) declining high margin royalties due to weak sales of small leather goods and women’s watches.

Q EPS is cut to $0.18 from $0.38 and our FY 2015 estimate is cut to $1.15 from $1.50

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 $25.64 yesterday.

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