Citi Anticipates GES 4Q EPS

Guess? Inc. GES reports 4Q EPS on Wednesday 3/16 after the market close, Citi reports.

“The company has exceeded guidance since 1Q09, though the degree has lessened in 2010,” Citi writes. “Leverage over corporate expenses could drive upside to 4Q10 given more openings across 1Q-3Q than LY; healthy Europe and Korea revenues could also yield upside to the $1.02 to $1.06 guidance.

“The stock appears to be baking in a “miss” to guidance for a U.S. comp up +LSD to +MSD. Color on inventory and margins in North America (~50% of sales including wholesale) will be key and we'd like to see better performance in the domestic business before getting more favorable.”

Guess? Inc. closed Friday at $44.71.