Guess? Inc. (NYSE: GES)
Guess? Inc. reported upbeat earnings after markets closed on Wednesday, for the three months to Aug. 4 2018. The company posted earnings of $0.36 per share, surpassing Wall Street expectations of $0.32 per share.
Guess also released a rosy sales projection despite falling short of analyst estimates on sales during the quarter. Investors responded positively to the results, pushing shares of the Los Angeles-based clothing brand up 12% in the extended trading hours.
GES Earnings & Outlook
The company said its second-quarter net income increased to $25.5 million, or $0.31 per share, from $15.2 million, or $0.18 per share, in the same period last year. After stripping amortization and special items, earnings jumped to $29.5 million, or $0.36 per share, from $16.1 million, or $0.19 per share, in the earlier-year period.
In the quarter, Guess’ revenue reached $646 million, up 14% from $568 million in the year-ago quarter. Analysts were for adjusted earnings of $0.32 per share on $651 million revenue.
Retail revenue dropped 2% from year-over-year in the Americas region, as retail comparable sales jumped 3%. Europe and Asia regions, posted revenue growth of 22.2% and 32%, respectively.
For fiscal 2018, the company expects adjusted per-share earnings of between $0.94 and $1.03, from its earlier forecast of $0.88 to $0.99. It also expects revenue to grow by between 9% and 9.5% from its previous guidance of 8.5% and 9.5%.
Guess? CEO Comments
Commenting on the results, Guess? chief executive officer Victor Herrero said, “I am pleased to report that our second quarter results finished above the high-end of our expectations for adjusted operating margin and adjusted earnings per share. Overall, total Company revenues increased 14% in U.S. dollars and 12% in constant currency, driven by continued momentum in Europe and Asia.”
Herrero continued, “The second quarter marked another quarter of operating margin expansion for the Company, with a 70 basis points increase in GAAP operating margin and 130 basis points increase in adjusted operating margin. In addition, I am very encouraged by the trends in our Americas Retail business where we posted another quarter of positive comps and expanded our operating margin.”
Guess? Inc. Company Profile
Guess? Inc. engages in designing, marketing, distributing and licensing of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities. It operates through the following segments: Americas Retail, Americas Wholesale, Europe, Asia, and Licensing.
The Americas Retail segment includes the Company’s retail and e-Commerce operations in North and Central America and its retail operations in South America. The Americas Wholesale segment consists of the Company’s wholesale operations in the Americas.
The Europe segment comprises the Company’s retail, e-commerce and wholesale operations in Europe and the Middle East. The Asia segment refers to the Company’s retail, e-commerce and wholesale operations in Asia and the Pacific.
The Licensing segment includes the worldwide licensing operations of the Company. The company was founded by Paul Marciano and Maurice Marciano in 1981 and is headquartered in Los Angeles, California. –CNNMoney
