Guess Shares Slide After Strong Q2

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Shares in Guess Inc. tumbled nearly 7 percent in after-hours trading Tuesday after the retailer reported big surges in profit and sales and upped its annual guidance.


Guess reported second quarter net income of $37.5 million (40 cents per share), an 82-percent increase from $20.6 million (22 cents) during the same period a year earlier, beating analysts’ expectations of 33 cents per share, according to a poll conducted by Thomson Financial.


Sales for the Los Angeles-based clothing retailer also jumped 48 percent to $388 million, also beating Wall Street’s expectations $342 million spurred by a 16 percent increase in same-store sales, the company said in a statement.


Guess said results were especially helped by strong sales in Europe and Asia.


Guess also said Tuesday that it raised its fiscal 2008 earnings guidance to between $1.79 per share and $1.84 per share on revenue between $1.56 billion and $1.60 billion. Analysts polled by Thomson Financial expect a profit of $1.83 per share on revenue of $1.56 billion.


Shares in Guess closed up 40 cents but quickly lost ground after the earnings report hit, sending shares down as much as $3.70, or 6.7 percent, to $49.70. Shares reached a 52-week high of $54.10 at one point Tuesday.

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