Guess Rises 3% After Q3 Results
Shares of Guess? (NYSE: GES) rose sharply on Wednesday afternoon, following the release of the company's fiscal third-quarter earnings results. On Thursday, however, the stock gave back some of its gains, and shares were up less than three percent, trading near $25.93. The stock opened the session at $26.73 before falling in early trade.
The company has been struggling in recent years as operating margins have come under pressure, but sales have continued to rise on an annual basis. Net income, however, fell in fiscal 2012 versus the year ago period.
Over the last decade, Guess has soared over 1,900 percent but the stock is down 41 percent over the last five years as investors have been concerned about less robust growth rates at the retailer. As of Wednesday's close, the stock had lost a little more than 15 percent in 2012.
For the fiscal third-quarter, the company reported net earnings of $36.65 million or $0.43 per share, compared to $66.30 million or $0.71 per share, in the year ago period. This missed Wall Street analysts' consensus earnings per share estimates of $0.44 by a penny.
Sales in the period were down 2.2 percent to $628.83 million from $642.80 million in last year's third-quarter. The results topped Wall Street consensus revenue estimates of $624.54 million.
Looking ahead to the fourth-quarter, Guess said that it expects earnings per share of $0.85 to $0.95 on revenue of $780 million to $8000 million. This compares to current consensus estimates of $0.95 per share in earnings and revenue of $789.17 million for the fiscal fourth-quarter.
For fiscal 2013, the company lowered its outlook. Earnings are now expected to be between $2.05 and $2.15 per share on revenue of $2.62 billion to $2.64 billion. This compares to the company's previous guidance of $2.15 to $2.30 per share on revenue of $2.62 billion to $2.65 billion.
The updated revenue guidance implies that Guess will report its first annual sales decrease in the last five years. The guidance is also below analysts' consensus estimates of $2.16 per share on revenue of $2.63 billion for fiscal 2013.
The company's board of directors approved a special dividend of $1.20 per share which will be paid along with the quarterly dividend of $0.20. The combined dividends will be payable on December 28, 2012 to shareholders of record at the close of business on December 12, 2012.
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