We are reiterating our Buy rating, $23 price target and projections for Guess? after visiting stores in Long Island and the Metropolitan New York City area. We believe Guess? has continued to roll out exciting items for Summer events in June, with an emphasis on sexy dresses, patterns and textures, with multiple silhouettes and a deep focus on matching items throughout the collection (and categories). Further, denim is a key fashion piece for the season, as lighter weights, wider legs and new styles tease a customer still focused on skinny, but willing to try new items. With warmer weather on tap, men's is also starting to come out of hibernation, with textured looks and short/top combinations to make shopping even easier. As such, we believe the company's stores continue to make progress, and we reiterate our Buy rating and $23 price target for GES.
