Guess Shares Sink In After-hours Trading On Weak Outlook

By Markets MarketWatch Pulse

Guess Inc. shares fell 9.8% in after-hours trading after the company reported fourth-quarter earnings that missed estimates and the company forecast losses in the first quarter. The apparel, accessories and consumer products company said it had net income of $47.8 million, or 57 cents per share, in the fourth quarter 2016, down from $53.9 million, or 63 cents per share, for the same period last year. The FactSet consensus was 58 cents. The company said it saw a 30% negative currency impact. Revenue for the quarter totaled $658.3 million, down from $696.7 million last year, but beating the FactSet consensus of $657 million. Asia saw the biggest revenue decline at 18%, while the Americas retail business saw the smallest, with a 3% decline. Guess sees a first quarter loss between 17 cents and 20 cents per share, with a currency headwind of 4 cents per share. Revenues are expected to fall between 0.5% and 1.5% on a constant currency basis, and between 2.5% and 3.5% including currency headwinds. The FactSet consensus is for first-quarter earnings of 3 cents per share and revenue totaling $466 million. Guess shares are up 13% for the year so far while the S&P 500 is down 0.8% for the same period. Guess shares closed down 1.8% on Wednesday at $21.32.

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