UBS lowered the firm’s price target on Guess (GES) to $16 from $18 and keeps a Neutral rating on the shares. The company’s Q3 sales miss and FY25 guide down underscore continuous challenges, particularly across its retail segments, and while there is the potential for Guess to deliver on its long-term double digit operating margin target, there are factors that will slow down the company’s trajectory, including negative comp sales in the Americas and Asia and FX headwinds, the analyst tells investors in a research note. UBS alsos doubt Guess delivers EPS surprises over the near-term to drive stock outperformance.

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Read More on GES:

• Guess?, Inc. Reports Third Quarter Financial Results

• Guess reports Q3 adjusted EPS 34c, consensus 37c

• Guess sees Q4 adjusted EPS $1.37-$1.52, consensus $1.96

• Guess cuts FY25 adjusted EPS view to $1.85-$2.00 from $2.42-$2.70

• Guess options imply 8.9% move in share price post-earnings