Why Guess?, Inc. Stock Popped Today

By MarketsFool.com

What happened

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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.

So what

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.

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Guess? CEO Victor Herrero stated the company is "pleased" its results came in above the high end of its expectations, elaborating:

Now what

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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Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Guess?. The Motley Fool has a disclosure policy.

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