Guess Inc. (GES) posted second-quarter earnings that topped the Street’s view and gave third-quarter guidance in-line with expectations, but the company merely reaffirmed its fiscal-year view, putting downward pressure on shares in after-hours trading.
For the fiscal second quarter, the company reported profit of $66.8 million or 72 cents a share, compared with earnings of $59.6 million or 64 cents a share, one year ago.
Revenue rose 10% to $577.1 million, compared with sales of $522.42 million in the same quarter last year. Gross margin fell to 43.7%, down from 44.4% in the year-ago quarter.
Analysts polled by Thomson Reuters had predicted earnings of 68 cents a share on revenue of $576.38 million.
“Our European and Asian expansion efforts continue to pay off, as these two regions represented nearly half of our revenue growth in the period, despite the headwind caused by the stronger US dollar,” Paul Marciano, Chief Executive Officer, commented, in a release. “We executed well and delivered record earnings for the period, even as the US retail environment became increasingly promotional. Today's strong results confirm the benefit of our diversified earnings, the capability of our management team and the vitality of our brand as we continue to expand worldwide."
The apparel-maker said it expects third-quarter earnings in the range of 55 to 58 cents a share on revenue between $565 million to $580 million. The Street had predicted earnings of 57 cents a share on revenue of $566 million.
The retailer backed its full-year forecast for earnings in the range of $2.80 to $2.85 a share on revenue between $2.35 billion to $2.40 billion.
Shares of Guess were up 78 cents or just over 2% on Wednesday, before falling $2.88 or 7.53% in after-hours trading following the release of results.