Guess Shares Rise on EarningsThursday, November 29, 2012
Shares of Guess Inc. rose slightly on Thursday after the company reported better-than-expected fiscal third-quarter revenue and announced a special dividend. Profit was lower than expected.
Guess late Wednesday reported net income of $36.6 million (43 cents a share) for the quarter ended Oct. 27, down 45 percent (28 cents) from the same period a year earlier. Revenue for the Los Angeles apparel designer and retailer fell 2 percent to less than $629 million.
Guess said lower royalties and sales in every market except Asia were behind the revenue decline, but the figure still beat Wall Street expectations. Analysts surveyed by FactSet on average expected net income of 44 cents a share on revenue of less than $625 million.
Guess said that on Dec. 28 it will pay a quarterly cash dividend of 20 cents a share, plus a special cash dividend of $1.20 a share. Analysts at Avondale Partners and Piper Jaffray raised their ratings on Guess stock, but Caris & Co. lowered its recommendation.
Shares closed up 49 cents, or 2 percent, to $25.74 on the New York Stock Exchange.