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Shares of Guess? Inc. (NYSE: GES) were up 16.3% as of 11:30 a.m. Thursday, after the clothing retailer announced better-than-expected fiscal first-quarter 2018 results.
Quarterly revenue increased 2.2% year over year (4% at constant currency) to $458.6 million, which translated to an adjusted net loss of $19.4 million, or $0.24 per share. But analysts, on average, were expecting a wider adjusted net loss of $0.32 per share on lower revenue of $447 million.
IMAGE SOURCE: GUESS?, INC.
Guess? CEO Victor Herrero stated the company is "pleased" its results came in above the high end of its expectations, elaborating:
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We continued to see strong performance in our international businesses. In Europe and in Asia, our revenues were up 23% and 17% driven by new store openings and positive comp sales. We are also encouraged by the trends in adjusted operating margins for these two regions, as they expanded in the quarter relative to last year. In the Americas, as the performance of our business and the environment remain soft, we are more than ever focused on shrinking our footprint and profitability improvements.
For the current fiscal second quarter, Guess? expects revenue to increase between 2% and 4% year over year (or 3.5% and 5.5% at constant currency), which should result in earnings per share of $0.08 to $0.11.
As such, Guess? increased its full fiscal-year 2018 guidance to call for revenue growth of between 3.5% and 5% (up from between 2% and 4% previously), and adjusted earnings per share of $0.34 to $0.44 (up from $0.28 to $0.40 previously).
In the end, given the company's strong beat and raise, it's no surprise to see Guess? stock rebounding from near-52-week lows today.
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