WASHINGTON (dpa-AFX) - Apparel retailer Guess Inc. (GES) Wednesday reported a second-quarter profit that trumped Wall Street expectations, driven largely by 13 percent increase in revenues. The company also lifted its full year outlook, sending shares up 5 percent in extended trading session.
Guess reported second-quarter earnings of $25.7 million or $0.31 per share, up from $15.88 million or $0.18 per share last year.
Adjusted earnings for the quarter rose to $29.5 million or $0.36 per share from $16.1 million or $0.19 per share. Analysts polled by Thomson Reuters estimated earnings of $0.32 per share for the quarter.
Revenues for the quarter increased 13.7 percent to $645.9 million from $568.3 million last year. Analysts had a consensus revenue estimate of $650.61 million for the quarter.
Americas retail revenues dropped 2.0 percent, while wholesale revenue increased 4.9 percent. For the quarter, revenues at European business segment gained 22.2 percent and Asia revenues increased 32.0 percent.
CEO Victor Herrero said, 'I am pleased to report that our second quarter results finished above the high-end of our expectations for adjusted operating margin and adjusted earnings per share. Overall, total Company revenues increased 14% in U.S. dollars and 12% in constant currency, driven by continued momentum in Europe and Asia.'
Herrero concluded, 'Looking forward, I feel confident that the 'turnaround' has only just begun, as we are well positioned to exit this fiscal year with every business segment profitable and the Company firmly on the path to our 7.5% operating margin goal by continuing to execute on our strategic initiatives.'
Looking forward to the third quarter, Guess expects adjusted earnings of $0.12 to $0.15 per share and revenues to increase between 9.0 to 10.0 percent. Analysts currently estimate earnings of $0.15 per share and revenues to increase 5.30 percent.
For the full year, Guess now expects revenue growth of 9.0 to 9.5 percent and earnings of $0.94 to $1.03 per share. Analysts currently estimate earnings of $1.05 per share on revenue growth of 8.40 percent for the year.
Earlier, the company expected adjusted $0.88 to $0.99 per share and revenue growth of 8.5 to 9.5 percent for the full year.
GES closed Wednesday's trading at $22.94, down $0.23 or 0.99%, on the NYSE. The stock, however, gained $1.11 or 4.84% in the after-hours trading.
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