Guess Shares Rise Ahead of 2Q Report

NEW YORK (AP) -- Shares of Guess Inc. rose Friday ahead of the apparel maker's second-quarter earnings report, as an analyst predicted the merchant would beat guidance.

Morgan Keegan analyst Brad A. Stephens in a note on Friday predicted Guess will earn 34 cents per share in the quarter, versus the company's own guidance for earnings between 31 cents per share and 33 cents per share.

The company reports quarterly results on Tuesday.

"Despite the soft retail environment, we expect Guess to exceed guidance and raise their forward outlook as our channel checks continue to suggest that Guess is one of the hottest brands in the market today," Stephens wrote. "For August, we believe Guess retail comps are running in the teens as they have been one of the primary beneficiaries of the recent rebound in retail, driven in large part by their extremely strong denim offering."

In addition, European growth could double in the quarter, Stephens said.

"We believe the combination of Guess' current momentum and international potential should drive substantial upward earnings-per-share revisions over the coming years," he wrote.

He reiterated an "Outperform" rating.

Shares rose $2.39, or 4.7 percent, to $52.86 during afternoon trading. The stock has traded between $19.77 and $53.46 during the past 52 weeks.