Foreign currency translation is predicted to adversely impact the results. Investors, meanwhile, expected the company to face charges related to payment of transition tax during the first quarter.
Analysts expect the company’s loss to steepen by 13% to $0.26 per share while revenue will rise by 3% to $536.98 million for the first quarter. In comparison, during the previous year quarter, Guess? posted a loss of $0.23 per share on revenue of $521.29 million.
The results remained unattractive to the investors as the company mostly missed analysts’ expectations. In the past four quarters, the company trailed for two times, came in line with consensus once and beat estimates once. Traders don’t expect the company to post upbeat results for the first quarter. Majority of the analysts recommended a “hold” rating while expecting the stock to reach $23.25 per share on the NYSE.
For the fourth quarter, the company reported a 13% jump in adjusted earnings but came in below the analysts’ expectations. Revenue rose by 6% and surpassed the consensus estimates. The payment of transition tax has negatively impacted the results for the fourth quarter.
For the first quarter of 2020, Guess? confirmed revenue growth outlook in the range of 2.5% to 3.5% and net loss guidance to be in the range of 29 cents to 25 cents per share. For fiscal 2020, the company had predicted revenue growth in the range of 4% to 5% and earnings in the range of $1.09 to $1.21 per share.
Shares of Guess? ended Friday’s regular session down 1.07% at $20.41 on the NYSE. The stock has fallen over 11% in the past year while it has risen over 8% in the past three months.