Guess Intrinsic Stock Value – GUESS Under Fire for Allegedly Involving Uyghurs in Forced Labor

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It is currently under fire for allegedly using forced labor of Uyghurs in its supply chain. The company is being investigated by the U.S. Customs and Border Protection due to reports that it has purchased cotton from factories located in the Xinjiang Uyghur Autonomous Region (XUAR) of China. The reports allege that the company has been using forced labor of Uyghur Muslims living in the XUAR region, where the Chinese government has been accused of oppressing them. The XUAR region has been a focus of international attention due to allegations of pervasive human rights violations, including mass detention of Uyghurs in internment camps where they are forced into manual labor. GUESS ($NYSE:GES) has denied any involvement in this alleged use of forced labor, but the U.S. Customs and Border Protection is still investigating the allegations.

If GUESS is found to have been involved in these practices, it could face severe penalties and tarnish its reputation as a responsible business. The company is also facing pressure from customers and environmentalists to address the issue and ensure that its supply chain is free from any form of exploitation.

Market Price

This has raised concerns among investors and customers regarding the ethical standards of the company. There have been calls for GUESS to be held accountable for their alleged involvement in forced labor and to take steps to ensure that it does not occur in its operations going forward. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Guess. GUESS_Under_Fire_for_Allegedly_Involving_Uyghurs_in_Forced_Labor”>More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Guess. GUESS_Under_Fire_for_Allegedly_Involving_Uyghurs_in_Forced_Labor”>More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Guess. GUESS_Under_Fire_for_Allegedly_Involving_Uyghurs_in_Forced_Labor”>More…

Key Ratios Snapshot

Some of the financial key ratios for Guess are shown below. GUESS_Under_Fire_for_Allegedly_Involving_Uyghurs_in_Forced_Labor”>More…

Analysis – Guess Intrinsic Stock Value

GoodWhale has conducted an analysis of GUESS‘s wellbeing and concluded that the fair value of a GUESS share is around $25.7, as calculated by our proprietary Valuation Line. Currently, GUESS stock is traded at $22.3, making it a fair price that is undervalued by 13.4%. We believe this presents a great buying opportunity for investors who are interested in taking advantage of this discount. With our comprehensive analysis, GoodWhale provides investors with the up-to-date information they need to make an informed decision. More…

Peers

Guess? Inc is a leading international lifestyle brand known for its iconic denim and fashion apparel. Along with Guess?, other popular lifestyle brands such as Esprit Holdings Ltd, TOM TAILOR Holding SE, and Brunello Cucinelli SpA have made a mark in the fashion industry, offering a wide range of high-quality products to customers around the world.

– Esprit Holdings Ltd ($SEHK:00330)

Esprit Holdings Ltd is a global fashion lifestyle company that designs, develops, and sells clothing, accessories, and home furnishings. The company has a market cap of 2.38 billion as of 2022, indicating its size and market presence. Additionally, Esprit Holdings Ltd has a Return on Equity (ROE) of 3.21%, which is a measure of the company’s profitability and efficiency in using equity to generate profits. This shows that the company is capable of generating returns on its equity holdings, indicating that it is well-managed and financially sound.

– TOM TAILOR Holding SE ($LTS:0MMJ)

TOM TAILOR Holding SE is a German-based fashion company that designs and sells apparel, footwear, and accessories for men, women, and children. The company has a market cap of 5M as of 2022 and a negative return on equity of -507.22%, indicating that the company has not been very successful in generating profits from investments. This can be attributed to the company’s inability to keep up with current fashion trends, as well as its lack of focus on marketing and promotion. Despite this, the company has still managed to remain successful in the industry, as it has managed to steadily increase its sales over the past few years.

– Brunello Cucinelli SpA ($LTS:0Q7S)

Brunello Cucinelli SpA is an Italian luxury fashion house based in Solomeo, Italy. Founded in 1978, the company specializes in producing and selling garments, cashmere knitwear, leather goods, and accessories. As of 2022, the company has a market cap of 4.74 billion and a Return on Equity of 23.98%. The company has grown significantly since its founding and has seen a steady increase in its market cap over the years. Its Return on Equity indicates that it is performing well relative to its peers in the industry.

Summary

It has come under scrutiny in recent years for allegations of forced labor of Uyghur workers in the company’s China-based supply chain. A comprehensive analysis of GUESS‘s investments reveals a series of responses to the accusations, including conducting human rights audits of suppliers and increasing transparency by publishing its list of suppliers.

In addition, the company has developed and implemented a human rights program to oversee its entire supply chain, as well as joining the Ethical Trading Initiative. The company also works with the International Labour Organization and other stakeholders to promote responsible labor practices in its supply chain. While these actions demonstrate an effort to address labor concerns, GUESS still faces significant challenges in ensuring the sustainability of its supply chain.