WASHINGTON (dpa-AFX) - Apparel retailer Guess Inc. (GES) Wednesday reported a third-quarter profit that fell short of Wall Street expectations, despite 10 percent increase in revenues. The company also lifted its full year outlook.
Guess reported third-quarter loss of $13.4 million or $0.17 per share, wider than $2.9 million or $0.04 per share last year.
Adjusted earnings for the quarter rose to $0.13 per share from $0.12 per share. Analysts polled by Thomson Reuters estimated earnings of $0.16 per share for the quarter.
Revenues for the quarter increased 10.3 percent to $605.4 million from $549.0 million last year. Analysts had a consensus revenue estimate of $603.08 million for the quarter.
Americas retail revenues dropped 0.1 percent, while wholesale revenue increased 15.5 percent. For the quarter, revenues at European business segment gained 14.8 percent and Asia revenues increased 20.4 percent.
CEO Victor Herrero commented, 'I am very pleased to report another quarter of strong operating performance with revenue growth of 10% in U.S. dollars and 13% in constant currency, significant growth in adjusted earnings from operations and adjusted operating margin finishing higher than our expectations despite unexpected currency headwinds.'
Looking forward to the fourth quarter, Guess expects adjusted earnings of $0.69 to $0.76 per share and revenues to increase between 4.0 to 6.0 percent. Analysts currently estimate earnings of $0.75 per share and revenues to increase 2.30 percent.
For the full year, Guess now expects revenue growth of 10 to 10.5 percent and adjusted earnings of $0.96 to $1.03 per share. Analysts currently estimate earnings of $1.09 per share on revenue growth of 9.20 percent for the year.
Earlier, the company expected revenue growth of 9.0 to 9.5 percent and earnings of $0.94 to $1.03 per share.
GES closed Wednesday's trading at $21.88, up $0.40 or 1.86%, on the NYSE. The stock further gained $0.12 or 0.55% in the after-hours trading.
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