Guess stock climbs after 4th-quarter profit surpasses Wall Street estimates

MarketsAssociated Press

The battered shares of Guess Inc. jumped Thursday after analysts saw some good news in the clothing retailer's fiscal fourth-quarter results.

The Los Angeles-based company said it earned 63 cents per share in the fiscal fourth quarter. That surpassed analyst estimates.

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But its fourth-quarter revenue and its forecast for fiscal 2016 earnings fell short of analyst estimates.

Still, Jefferies and Co. analyst Randal Konik said Guess's sales "are starting to show signs of life" in the U.S. and some important European markets, including Italy.

While the strong U.S. dollar and weak euro are still hurting Guess' sales, Konik said he expects improved results in the U.S. He said that's based on improved products, milder weather, and the end of shipping delays brought on by a labor dispute affecting West Coast ports.

He kept a "Hold" rating on the stock with a price target of $21 per share.

Guess shares rose $2.75, or 16.4 percent, to $19.49 in afternoon trading.

The company's stock is still off 32 percent over the last year.