Guess Inc. shares fell more than 6 percent on Thursday, a day after the apparel company reported a lower fiscal second quarter profit and gave guidance below Wall Street expectations.
After the Wednesday markets closed, the Los Angeles apparel company reported net income of $60.7 million (65 cents per share) for the quarter ended July 30, compared with $66.8 million (72 cents) in the same period a year earlier. Quarterly revenue rose 17 percent to $677 million.
The quarter included a charge of $19.5 million related to a pending settlement with one of the company’s European service providers. Excluding one-time items, net income was 84 cents per share.
Analysts surveyed by Thomson Reuters on average expected a lower adjusted per-share profit of 81 cents on higher revenue of nearly $688 million.
For the current quarter, the company expects per-share earnings of 71 to 74 cents on revenue of $650 million to $665 million. That’s significantly lower than the Wall Street consensus for 85 cents per-share profit on revenue of $690 million.
“Global economic and market conditions have become increasingly volatile, which could erode consumer confidence and have an impact on our customers’ behavior,” Chief Executive Paul Marciano said in a statement. “We will continue to monitor market conditions and manage our business prudently.”
Shares on Thursday closed down $2.25, or 6.7 percent, to $31.04 on the New York Stock Exchange.
For reprint and licensing requests for this article, CLICK HERE.