We are reiterating our Buy rating, $23 price target, and projections for Guess? as we look at key trends for 2HFY26 and beyond. GES, trading at 7.2X our FY26 EPS, has remained fully in "show me" mode with investors since the rag and bone acquisition (April 2024) and weakness in Guess? domestic retail operations necessitated a material ramp in S,G&A and marketing expenses in 2HFY25; when added to tariff worries, and slowing results in the company's European stores, we understand the GES lethargy with investors. That said, we believe there are signs of a turn, which will be amplified by weakness in the US Dollar and when the impact from increased marketing takes hold and drives the top line. As such, we reiterate our Buy rating and $23 price target for GES as we look for signs of returning momentum in 2HFY26.
