Guess? (GES) is a mid cap apparel store whose stock has fallen in bad times. After reporting same-store sales were down 8.5% in North America, shares of this stock have dropped precipitously and they now trade at attractive valuation multiples, both on an absolute basis and also relative to other mid cap apparel stocks. Investors should consider buying stock in Guess? because its growth trends in the medium term are attractive and its valuations are compelling.
Guess? Operations: Modest Decline
The most recent quarterly filing from Guess? reveals that net sales were down for developed markets and that the Asia segment is still experiencing growth:
|
Net revenue: |
Q2 2012 |
Q2 2011 |
% Change |
|
Europe |
246,917 |
288,818 |
-14.5% |
|
North American Retail |
253,012 |
261,053 |
-3.1% |
|
Asia |
66,826 |
55,283 |
20.9% |
|
North American Wholesale |
41,628 |
43,868 |
-5.1% |
|
Licensing |
27,010 |
28,137 |
-4.0% |
|
Total Net Revenues |
635,393 |
677,159 |
-6.2% |
This would bother me
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