After Wednesday's close, Guess? reported second-quarter earnings of $42.9 million, or 49 cents a share, on revenue of $635.4 million, missing Wall Street's consensus estimate for a profit of 50 cents a share in the July-ended quarter.
The company said business was weak in North America where retail revenue fell 3% year-over-year and same-store sales dropped 8.5%.
"While store traffic remained down in North America, our strategy to elevate our women's business appears to be working," said Paul Marciano, the CEO of Guess?. "We are now focused on driving improvements in accessories, which has become increasingly competitive, and are also developing plans to refine our North American strategy where necessary to remain competitive. Our European business remained stable, as we grew in newer markets in the north and east, while economic conditions continued to affect consumers, particularly in the south."
For its fiscal third quarter ending in October, Guess? sees earnings of 42 to 46 cents a share on revenue ranging from $620 million to $630 million. That view is well below the current consensus estimate for a profit of 61 cents a share in the third quarter on revenue of $661.7 million.
For the full year ending in January, the company now sees earnings of $2.15 to $2.30 a share on revenue ranging from $2.62 billion to $2.65 billion. The average analysts' estimate is for earnings of $2.53 a share on revenue of $2.69 billion.
The stock closed Wednesday's regular session at $33.54, and was trading down more than 16% in after-hours action.
Written by Michael Baron in New York.
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