Guess Shares Sink After Earnings Miss, Weak Outlook

By Tonya Garcia Markets MarketWatch Pulse

Guess Inc. shares sank 10.5% in late-Wednesday trading after the apparel and accessories company reported fourth-quarter earnings that missed expectations and offered weak guidance. Net income for the quarter was $6.6 million, or 8 cents per share, down from $47.8 million, or 57 cents per share last year. Adjusted EPS was 41 cents, missing the 44-cent FactSet consensus. Revenue was $679.3 million, up from $658.3 million last year, but below the $689.0 million FactSet consensus. Same-store sales in the U.S. and Canada decreased 7%. Guess sees a first-quarter loss per share in the range of 30 cents to 33 cents. The FactSet consensus is for a loss of 23 cents per share. First-quarter same-store sales in the Americas are expected to be down in the mid-to-high teens. Guess shares are down 43.7% for the past year while the S&P 500 index is up 18.3% for the same period.

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