Guess (GES) has had its price target lowered by UBS from $18 to $16, with a Neutral rating on the stock. This adjustment comes after the company's disappointing Q3 sales and a downward revision of its FY25 guidance, which highlights ongoing challenges, particularly in its retail segments.

Negative comparable sales in the Americas and Asia, along with foreign exchange headwinds, are significant factors impacting the company's performance. UBS expresses skepticism about Guess's ability to deliver earnings per share surprises in the near term, which could hinder stock outperformance, despite the potential for the company to achieve its long-term goal of a double-digit operating margin.

The company's challenges are reflected in the lowered price target and Neutral rating by UBS. The disappointing Q3 sales and downward revision of FY25 guidance indicate ongoing difficulties, especially in the retail segments. Negative comparable sales in the Americas and Asia, as well as foreign exchange headwinds, are major factors affecting the company's performance. UBS doubts Guess's ability to deliver earnings per share surprises in the near future, which may hinder stock outperformance. However, the company still has the potential to achieve its long-term goal of a double-digit operating margin.