Guess Inc. shares jumped Wednesday, a day after the trendy apparel maker reported higher third-quarter profit that sharply exceeded Wall Street expectations, and raised its guidance for the rest of the year.
After Tuesday's markets closed, the Los Angeles retailer and wholesaler reported net income of $69.1 million (75 cents per share) for the quarter ended Oct 30, compared with $64.1 million (69 cents) a year earlier.
Revenue rose 17 percent to nearly $614 million. Expansion in Asia and Europe again drove revenue in the period, with those regions contributing two-thirds of revenue growth, compared with half of growth in the second quarter.
Analysts surveyed by Thomson Reuters on average expected per-share profit of 59 cents on revenue of $580 million.
"We are very pleased with our third quarter performance, which exceeded our expectations for top line growth, operating margin and earnings,” said Chief Executive Paul Marciano in a statement. “We grew all of our businesses and made significant progress on several key initiatives, (including) opening 84 new stores around the world.”
For the fourth quarter, the company expects earnings of $1.02 to $1.06 per share, and net revenue of $710 million to $730 million. The Wall Street consensus is $1.02 per share profit on revenue of $694 million.
Shares closed up $4.56, or 10 percent, to $49.90 on the New York Stock Exchange.
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