Stocks quoted in this article:
Guess? (GES – 19-13/16) markets upscale casual apparel for men, women, and children. The company peddles its wares through a worldwide network of over 3,000 retailers. Additionally, GES owns 140 stores of its own within the United States. For the past three months, GES had been attempting to inch higher, trending in an oscillating pattern of higher lows and higher highs. Since the beginning of September, however, the stock has been settling slightly lower and has now breached its 10-day and 20-day moving averages. Additionally, these short-term trendlines just completed a bearish crossover, a sign of technical weakness.
This morning, GES shares are poised to open considerably lower. Presently halted, the stock is indicated with a bid price of 13 and an ask price of 16, a 34- and 19-percent decline from last night's close, respectively. This negative price action was spurred by the company's announcement that third-quarter earnings will likely weigh in at 35 to 38 cents per share. The Street had expected the firm to earn 44 cents per share. GES cited a difficult retail environment and slow same-store sales for the third quarter as the reasons behind this disappointment. Additionally, GES officials issued a warning for the fourth quarter. GES is due to report its quarterly earnings on or around Halloween.