In a challenging retail environment, Guess? Inc (NYSE:GES) stock has tumbled to a 52-week low, touching down at $12.59. The fashion retailer, known for its denim and accessories, has faced a tough year, with its stock price reflecting a significant 1-year decline of 38.21%. According to InvestingPro data, the company trades at an attractive P/E ratio of 7.18 and offers a substantial dividend yield of 8.99%, having maintained dividend payments for 18 consecutive years. This downturn mirrors broader market trends where consumer discretionary spending is under pressure, and companies like Guess? Inc are grappling with the impact of economic headwinds. Investors and analysts are closely monitoring the company's strategy to navigate through these market conditions and improve its financial performance. InvestingPro analysis indicates the stock is currently undervalued, with management actively buying back shares and maintaining strong free cash flow yields. Discover 10+ additional exclusive insights and detailed analysis in the Pro Research Report, available with an InvestingPro subscription.
In other recent news, Guess Inc. experienced a mixed Q3, with a 13% increase in revenue to $739 million, largely due to the acquisition of the Rag and Bone brand. However, the company faced challenges in North American and Asian retail markets due to decreased store traffic and changing consumer spending patterns. Analysts from Jefferies and Telsey Advisory Group have revised their ratings, maintaining a Hold and Market Perform rating respectively. Jefferies reduced its price target to $14, while Telsey Advisory Group adjusted their target to $18. Both firms expressed caution due to ongoing struggles in the retail sector. Guess has adjusted its full-year revenue guidance to 7-8% growth and its EPS outlook to $1.85-$2.00. Despite these challenges, CEO Carlos Alberini remains confident about the company's long-term growth and potential of new brand initiatives. These developments highlight the company's attempt to navigate a complex retail environment while focusing on strategic initiatives and brand expansion.
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