New CFO Steps In, But Guess? Remains Cautious: Analyst Reiterates Market Perform Amid Uncertain Outlook

Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on the shares of Guess? Inc GES with a price target of $23.
The company announced the appointment of Markus Neubrand as CFO, effective August 1.
Neubrand will succeed interim CFO Dennis Secor, who has served in the role since April 1, 2022, following the departure of Katie Anderson after two and a half years as the CFO.
The analyst said that the market will likely be encouraged with the appointment of a permanent CFO after a year-long search, removing a layer of uncertainty within the senior management team going forward.
With the fourth quarter in the rearview, the focus shifted to the company’s first quarter and FY23 outlook, which disappointed across the board, added the analyst.
The analyst said Q1 faces a tough prior year compare from COVID subsidies and the timing of shipments that benefited 1Q22.
The company’s overall outlook reflects a still cautious consumer spending environment in the U.S. and uncertainties in Europe, along with tighter inventories at retail that could pressure the wholesale channel, said the analyst.
The analyst noted that the impact of macro and inflationary headwinds is evident in the company’s cautious view of the year ahead, with no real visibility to an improved operating environment.
Price Action: GES shares are trading lower by 0.05% at $18.47 on the last check Wednesday.

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