Categories AlphaGraphs, Earnings, Retail

Guess? stock dips on weak Q3 results, guidance

Guess? Inc. (GES) reported a wider loss in the third quarter due to charges related to the estimated European Commission fine and higher distribution costs related to the relocation of the European distribution center. The bottom line missed analysts’ expectations while the top line exceeded consensus estimates. Following this, the stock fell over 8% in the after-market session.

Net loss widened to $13.4 million or $0.17 per share from $2.9 million or $0.04 per share last year. Adjusted earnings increased 8.3% to $0.13 per share.

Revenue grew 10% to $605 million. In constant currency, net revenue increased by 13.1%.

Guess Q3 2019 Earnings Infographics

Operating margin decreased 350 basis points to negative 3.6%. This was due to the charges related to the estimated European Commission fine and higher distribution costs related to the relocation of its European distribution center. This was partially offset by the favorable impact from higher European wholesale shipments and lower markdowns in Americas Retail.

Looking ahead into the fourth quarter, the company expects revenue to increase in the range of 4% to 6% in US dollars basis and 7.5% to 9.5% in constant currency basis. Earnings are anticipated to be $0.69 to $0.76 per share. Operating margin is predicted to be 9.5% to 10% for the quarter.

For the full year 2019, the company now predicts revenue growth of 10% to 10.5% and GAAP EPS in the range of $0.57 to $0.64. Adjusted earnings are now anticipated to be in the range of $0.96 to $1.03 per share. GAAP operating margin is predicted to be 2.5% to 2.8% and adjusted operating margin is projected to be 4.5% to 4.8%.

Gap Inc (NYSE: GPS) falls despite exceeding Q3 estimates

For the third quarter, in US dollars, Americas Retail revenues decreased 0.1% despite a 3% increase in retail comp sales including e-commerce, while Americas Wholesale revenues increased 15.5%. Europe revenues increased 14.8% helped by an 8% rise in retail comp sales including e-commerce. Retail comp sales including e-commerce growth of 8% drove Asia revenues higher by 20.4%. Licensing revenues rose by 7.4%.

In addition, the company’s board of directors approved a quarterly cash dividend of $0.225 per share on its common stock. The dividend will be payable on January 2, 2019, to shareholders of record at the close of business on December 12, 2018.

Shares of Guess ended Wednesday’s regular session up 1.81% at $21.88 on the NYSE. The stock has risen over 29% in the year so far and over 36% in the past year.

Most Popular

Weibo (WB) Earnings: 1Q21 Key Numbers

Weibo Corporation (NASDAQ: WB) reported first-quarter 2021 earnings results today. Net revenues increased by 42% year-over-year at $458.9 million and 31% increase on a constant currency basis. Net income attributable

Earnings calendar for the week of May 10

Stock markets rallied amid mixed cues on the health of the labor market, with latest data showing that payrolls grew at a slower-than-expected pace while unemployment claims slipped below the

Apple-Epic legal fight could set a new paradigm for mobile app distribution

These days the tech world is abuzz with the legal battle between gadget giant Apple, Inc. (NASDAQ: AAPL) and Epic Games, which has elicited significant media interest. The trial in

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top