logo
  Join        Login             Stock Quote

Guess? (GES) 3Q Earnings Drop 44.7 Pct, Cuts 2013 Profit View

 November 28, 2012 04:26 PM
 


(By Balaseshan) Guess? Inc. (NYSE: GES) reported a 44.7% drop in quarterly earnings, missing Street's expectations, due to lower store traffic as well as economic conditions. Further, the company lowered fiscal 2013 earnings outlook.

Earnings for the third quarter were $36.65 million or $0.43 per share, down from $66.3 million or $0.71 per share last year. Revenue declined 2.2% to $628.83 million. In constant dollars, revenue increased 1.2%.

Analysts, on average, polled by Thomson Reuters had expected a profit of $0.44 per share on revenue of $624.54 million for the third quarter.

Retail stores revenue in North America decreased 1.3% to $262.1 million. Comparable store sales decreased 6.0%. The company directly operated 513 retail stores in the United States and Canada at the end of the third quarter, up from 495 stores a year earlier.

[Related -Guess?, Inc. (GES) Q3 Earnings Preview: November Is A Perfect Fit]

Revenue from Europe segment fell 8.3% to $202.6 million, while revenue from Asia segment climbed 15.5% to $74.8 million. Revenue from North American Wholesale segment rose 1.0% to $57.9 million, while licensing revenue declined 7.6% to $31.5 million.

The company said product margins were lower, primarily driven by promotions in North America and the effect of pricing parity changes in Canada.

Operating margin declined 590 basis points, primarily due to the impact of higher occupancy and selling costs in Europe.

The company also said its board of directors has approved a quarterly cash dividend of $0.20 per share on its common stock. The dividend will be payable on December 28 to shareholders of record at the close of business on December 12.

[Related -Stocks End Sharply Lower Amid Data; Krispy Kreme Doughnuts (KKD) Surges]

Looking ahead into the fourth quarter, the company expects earnings of $0.85 to $0.95 per share and revenue of $780 million to $800 million, while Street predicts $0.95 per share on revenue of $789.17 million.

For the fiscal 2013, the company lowered earnings guidance to range of $2.05 to $2.15 per share from previous forecast of $2.15 to $2.30 per share. GES narrowed its revenue outlook to range of $2.62 billion to $2.64 billion from previous estimate of $2.62 billion to $2.65 billion. Street analysts predict profit of $2.16 per share on revenue of $2.63 billion.

GES closed Wednesday's regular trading up 5.38% at $25.25. The stock has been trading between $22.48 and $37.15 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.