On Thursday, Jefferies, a financial services company, raised the price target for shares of fashion retailer Guess (NYSE: NYSE:GES) to $29.00, up from the previous target of $24.00. The firm has retained a Hold rating on the stock.
The adjustment follows Guess's announcement of positive fourth-quarter earnings, which showcased a 9% year-over-year increase in revenue and margin expansion, leading to a significant earnings per share (EPS) beat.
The company has acknowledged that foreign exchange (FX) headwinds are likely to persist through the first half of the year. However, management highlighted potential growth opportunities stemming from the recent acquisition of rag & bone and initiatives surrounding the Guess Jeans brand, which are expected to enhance sales figures.
In addition to the financial performance, Guess's management has declared a special dividend. This move is a direct benefit to shareholders and reflects the company's financial health and commitment to returning value to its investors.
Despite the positive developments, Jefferies expressed caution regarding the future, citing anticipated softer consumer trends. The firm's stance remains neutral, although the price target and estimates have been increased based on the latest financial results and strategic plans disclosed by Guess's management.
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