Guess? Inc. plunges to 4 1/2 month low on weak outlook

Shares of apparel retailer Guess? Inc. (NYSE: GES) plunged to a 4 1/2 month low on Thursday after it guided first quarter below consensus estimates.

The company expects first quarter profit per share of between 41 cents and 44 cents versus consensus of 61 cents. Revenue is projected in the range of $555 million to $570 million, 8 percent to 10 percent below consensus.

On Wednesday, Guess? posted fourth quarter earnings of $103.3 million or $1.11 per share, up from $86.6 million or $0.93 a share in the year-ago quarter. Global revenue rose 18 percent to $757 million. Comparable store sales declined 1.1 percent as traffic slowed down.

Guess?, much like any of our other denim based or contemporary plays (all of whom have released weaker-than-expected guidance for FY212) is not immune from an increasingly inflationary environment, analyst Eric Beder of Brean Murray Carret & Co. wrote in a note.

The brokerage reiterated its price target of $60 on Guess?, saying the company remains well positioned for uncertain times. The brokerage, which has a 'Buy' rating on the stock, said it continues to view the company's business model as one of the strongest in retailing with material growth prospects in North America, Europe and Asia.

Shares of GES, which have fallen below its 200-day moving average, are now trading 11 percent lower at $39.05 at 10.22 am EDT on Thursday. Over the past year, the stock has traded between $30.53 and $51.53.