Guess Inc. on Monday reported slightly higher third quarter earnings and forecast a holiday shopping season that was better than Wall Street expected.
After the markets closed, the Los Angeles clothing wholesaler and retailer reported net income of $64.1 million (69 cents per share) for the quarter ended Oct. 31, compared with $64 million (67 cents) a year earlier.
Total revenue fell 1 percent to less than $523 million. Revenue climbed 1.9 percent in North America but fell 9.3 percent in Europe, due in part to a shift in shipment deliveries to the previous quarter. Wholesale division revenue was up 10 percent.
Analysts surveyed by Thomson Reuters on average expected per-share earnings of 50 cents on revenue of more than $482 million.
The company said controlled spending and tighter inventories improved its operating margin by 10 basis points to 18.9 percent. Chief Executive Paul Marciano said his company gained market share in key markets and said international expansion continues to be a high priority. The company also plans to resume opening stores in North America after halting expansion during the recession.
“There have been many challenges over the past year, and we responded well to them,” said Marciano in a statement. “As a result, we are a stronger company today.”
Guess said it expects fourth quarter earnings to be between 77 cents to 80 cents per share on revenue of $585 million to $605 million. Analysts on average are expecting earnings of 69 cents on revenue of nearly $564 million.
Shares, which earlier closed down 42 cents, or 1 percent, to $37.05, rose 6 percent in after-market trading.
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