[Note: Guess
GES
Guess Stock (NYSE: GES), a retailer that designs, markets, distributes, and licenses apparel and accessories for men, women, and children, grew roughly 4% year-to-date – rising from about $20 to around $21 currently, underperforming the S&P500, which grew about 13%. Guess is cheap relative to its historical performance, which currently reflects the near-term outlook. However, we expect the stock to perform well in the long term. As a general protective move to shore up inventory, the retailer ordered products earlier than normal to deal with supply chain headwinds. The strategy seems to have worked in FY2023 (year ended Jan 2023), as the company has been able to deliver more products to wholesalers due to its accurate acquisition of enough products. Still, the foreign currency fluctuations are definitely a drag on the company and we expect the FX headwinds to continue in FY 2024 as well.
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