NEW YORK (TheStreet) -- Shares of Guess (GES) - Get Guess?, Inc. Report were falling 7.32% to $19.74 after-hours Wednesday after the clothing brand guided below estimates for the fiscal third quarter.
Looking to the third quarter, Guess said it expects earnings of 8 cents to 12 cents a share, below analysts' estimates of 18 cents a share for the quarter. Guess said it expects revenue to fall between 3% and 4.5% in the quarter.
Guess reported earnings of 21 cents a share for the second quarter, beating analysts' estimates of 15 cents a share. Revenue fell 10% year over year to $546 million for the quarter, compared to analysts' estimates of $537.61 million.
"In our Americas Retail business, comp sales ended flat for the quarter in constant currency, mainly driven by continued improvement in the performance of the womens' category," Chairman and Chief Creative Officer Paul Marciano said in a statement. "Our e-commerce business continued to experience solid top-line growth of 20%."
TheStreet Ratings team rates GUESS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate GUESS INC (GES) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins."
You can view the full analysis from the report here: GES Ratings Report