Guess Inc. late Wednesday reported better-than-expected second quarter profit, but provided a cautious outlook for the current quarter that sent the stock down in after-hours trading.
After markets closed, the apparel retailer and wholesaler reported net income of $66.8 million (72 cents per share) for the quarter ended July 31, compared with $59.6 million (64 cents) a year earlier. Revenue rose 10.5 percent to $577 million.
Analysts surveyed by Thomson Reuters on average expected per-share earnings of 68 cents on revenue of more than $576 million.
Chief Executive Paul Marciano noted that Europe and Asia, where the company has concentrated its expansion efforts represented nearly half of revenue growth in the quarter, despite a stronger U.S. dollar.
The company warned, however, that the worldwide economic outlook could temper growth. “Economic conditions remain uncertain in many markets around the world, and consumer behavior remains cautious,” said Marciano in a statement. “We continue to manage our business carefully, focusing on what we can control, but always with an eye toward the future.”
Guess is expecting to report third quarter net income of 55 cents to 58 cents per share on revenue of $565 million to $580 million. The average profit expectation of analysts is 57 cents per share.
Shares earlier closed up 78 cents, or 2 percent, to $38.23 New York Stock Exchange, but fell 4.5 percent in after-market trading.
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