Guess Inc. late Thursday said that fiscal first quarter earnings rose sharply, but its stock fell in after-hours trading when the apparel company issued guidance below analyst expectations.
After the markets closed, the Los Angeles manufacturer and retailer reported net income of $50.3 million (54 cents per share) for the quarter ended May 1, compared with $32.5 million (35 cents) a year earlier. Revenue rose 22 percent to more than $539 million.
After one-time items, the company earned 58 cents per share. Analysts surveyed by Thomson Reuters on average expected adjusted per-share earnings of 49 cents on revenue of nearly $508 million.
Chief Executive Paul Marciano noted the company saw a 9.7 percent increase in same store sales in its North America market, with Europe and Asia combined contributing nearly 60 percent of the total quarterly revenue increase.
“We remain focused on our key priorities for this year: to increase sales productivity across all businesses, to grow our European and Asian businesses and to expand our retail store base in North America,” Marciano said in a statement.
But Guess disappointed Wall Street by saying it expects to earn 65 to 68 cents per share in its second quarter, citing the continued strengthening of the U.S. dollar against the Euro. That’s below average analyst expectations of 77 cents. The company expects to earn $2.80 to $2.85 per share for the full year, also below analyst expectations of $2.99.
Guess shares closed up $2.54, or 7 percent, to $38.17, but lost nearly all that gain in after-hours trading.
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