Shares of Guess Inc. plummeted in after hours trading Wednesday after the company reported earnings that showed sales in Europe and North America continued to fall in the fiscal fourth quarter.
Guess Inc. reported fourth quarter net income of $81 million (95 cents a share), a 15 percent decrease from the same period a year earlier. Revenue for the Los Angeles apparel designer rose 5 percent, to $851 million. The results beat expectations. Analysts believed earnings would be 87 cents a share on revenue of $786 million.
Guess Chief Executive Paul Marciano said the company made inroads in new international markets, but economic turmoil in major Western markets stymied sales.
“We continued to direct our expansion efforts towards newer international markets, growing revenue in the double digits in key markets such as Korea, Germany, Greater China, Mexico and Russia,” he said. “In North America, lower traffic and the promotional environment continued to impact our business, while in Southern Europe, the weak economic conditions continue to impact consumer confidence.”
Before earnings were announced, shares closed up 20 cents, less than 1 percent, to $26.95 on the New York Stock Exchange. But in after hours trading, shares fell $1.45, more than 5 percent, to $25.50.