Guess Q3: Weakness In America And Asia Appears Structural
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Guess has faced significant challenges, with shares dropping 20% over the past year and an additional 10% after disappointing Q3 results. The company struggles with structural weaknesses in the US and Asia, despite strong sales in Europe. High inventories and markdowns are pressuring margins, leading to reduced operating margins and earnings. Management's repeated guidance cuts and over-ordering issues raise concerns about future performance.
November 27, 2024 | 2:00 am
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Guess shares have dropped 20% over the past year and another 10% after Q3 results, due to structural weaknesses in the US and Asia. High inventories and markdowns are pressuring margins, despite strong European sales. Management's guidance cuts raise concerns about future performance.
The article highlights Guess's ongoing struggles in key markets like the US and Asia, which are seen as structural. This, combined with high inventories and markdowns, is pressuring margins and earnings. The repeated guidance cuts by management indicate a lack of control over business dynamics, which is likely to negatively impact the stock price in the short term.
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