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NEW YORK, United States — Guess? Inc. gained the most in almost four months after Evercore ISI raised its rating on the shares, citing improving European sales and the leadership succession plan that the apparel maker announced this week.
Guess said Tuesday that Inditex SA executive Victor Herrero will succeed co-founder Paul Marciano as chief executive officer in August.
“The announcement, which provides much needed visibility into Guess’s future leadership structure, coupled with improving sales trends in Europe and stabilizing operating margins, positively shifts the risk-reward for Guess shares,” Omar Saad, an analyst at Evercore, said in a note. He raised his rating on the stock to hold from sell.
The shares climbed as much as 10 percent to $23.35 in New York, the biggest intraday gain since March 19. Los Angeles- based Guess had risen 0.4 percent this year through Tuesday’s close.
By Lindsey Rupp; editors: Nick Turner, Kevin Orland.
