Skip to main content

NEW YORK (TheStreet) -- Shares of Guess? (GES) - Get Free Report were sliding mid-afternoon Tuesday after fellow fashion retailer Abercrombie & Fitch (ANF) delivered a wider-than-expected loss for the 2016 second quarter before the market open.

The company also reported a 4% decline in same-store sales for the quarter.

Abercrombie's Executive Chairman Arthur Martinez said in a company statement that traffic is still a major headwind for the retailer at flagship and tourist locations, while President and Chief Merchandising Officer Fran Horowitz said on a conference call that the company doesn't see a "near-term catalyst" to slow sluggish traffic trends.

Following its competitor's report, Guess stock slumped.

Last week, the Los Angeles-based fashion retailer reported earnings for the fiscal 2017 second quarter that beat expectations, with comparable store sales sliding 2% in the quarter.

For the current quarter, the company projects earnings between 11 cents and 16 cents per diluted share vs. analysts' estimates of 16 cents per share.

For the full year, Guess? is looking for adjusted earnings between 62 cents and 75 cents per share, while analysts expect earnings of 60 cents per share.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

You can view the full analysis from the report here: GES

Image placeholder title