Guess Gives Muted Guidance as Sales Fall
27 August 2015 - 7:30AM
Dow Jones News
Guess Inc. gave muted earnings guidance for the current quarter
on Wednesday, as sales fell 10% in the most recent quarter amid
currency fluctuations.
Shares fell 4% in recent after-hours trading.
For the current quarter, the company expects per-share earnings
in the range of 8 cents to 12 cents. Analysts had called for
earnings of 18 cents a share.
However, the company also raised the lower end of its full-year
guidance. Guess now expects per-share earnings between 89 cents and
$1.02 a share, compared with its previous low point of 86 cents.
Analysts had called for earnings of 95 cents.
Overall, Guess posted a profit of $18.3 million, or 21 cents a
share, compared with a profit of $22 million, or 26 cents a share,
a year earlier.
Revenue fell to $546.3 million from $608.6 million a year
earlier.
Analysts polled by Thomson Reuters have expected per-share
profit of 15 cents and $538 million in revenue.
The Los Angeles-based apparel company has struggled with the
effect of the strong dollar. It generates big chunks of its sales
overseas, deriving roughly a third of its sales in Europe. It
recently named Victor Herrero to replace co-founder Paul Marciano
as chief executive. Mr. Herrero previously worked for retailer
Inditex Group, which includes brands Zara, Massimo Dutti and
Stradivarius. Most of his experience with Inditex has been in Asia
and Europe.
Revenue in its European segment fell 15%, though it would have
increased 3.7% on a constant currency basis.
Sales in the Americas dropped 4.7%. Revenue in the Americas
Wholesale segment fell 15%, and 9% in constant currency. Sales in
Asia fell 12%, and would have fallen 6% in constant currency.
Write to Angela Chen at angela.chen@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 26, 2015 17:15 ET (21:15 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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