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Sunday, Sep 24, 2023

Guess Stock Jumps on Better-Than-Expected Quarter

Shares of Guess Inc. jumped more than 11 percent on Thursday, a day after the trendy apparel company reported higher sales, boosted by its overseas operations. The results beat Wall Street expectations.

After the markets closed, the Los Angeles retailer and wholesaler known for its designer jeans reported net income of $42.7 million (46 cents a share) for the quarter ended April 30, compared with net income of $50.3 million (54 cents) a year earlier. Sales rose 10 percent to $592 million, with revenue up across all segments.

Analysts surveyed by Thomson Reuters on an average had expected per-share profit of 44 cents on sales of less than $568 million.

Guess saw a 5 percent increase in North American retail revenue to more than $247 million, despite a 3 percent decline in same-store sales. The company increased its retail stores over the past year by 12 percent to 484.

Retail sales were up 12 percent in Europe to $210 million and 24 percent in Asia to $60 million.

“We continued to expand the global presence of the Guess brand,” said Chief Executive Paul Marciano in as statement. “While we remain excited about our future, this year is not without its challenges. Our entire industry is experiencing rising commodity and input costs and there remains uncertainty in many economies around the world. Our strong management team is working on multiple initiatives to mitigate those challenges.”

The company expects second-quarter net revenue to range from $645 million to $660 million, with diluted earnings per share in the range of 77 to 83 cents.

Shares on Thursday closed up $4.56, or 11.4 percent, to $44.66 on the New York Stock Exchange.

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