Guess?, Inc. GES shares were trading lower in Tuesday's after-hours session after the company reported worse-than-expected, third-quarter financial results and issued fourth-quarter adjusted earnings per share guidance below estimates.
What To Know: Guess? reported quarterly earnings of 49 cents per share, falling below the analyst consensus estimate of 62 cents, representing an 11.36% increase over earnings of 44 cents per share from the same period last year.
The company reported quarterly sales of $651.00 million, missing The Street's estimate of $656.03 million, a 2.78% increase over sales of $633.40 million from the same period last year.
The company also detailed its net revenue data for the quarter, including Europe revenues which increased 6% in U.S. dollars and 5% in constant currency. Retail comparable sales (including e-commerce) increased 8% in U.S. dollars and 7% in constant currency.
The operating margin for the quarter was 8.4%.
Guess? issued fourth-quarter guidance, expressing a cautious view going forward, with earnings expected to be in a range between $1.53 and $1.60 per share, versus the $1.68 estimate, while Net Revenue is expected to be up 4 to 6%.
Additionally, the company lowered its full-year 2024 outlook, anticipating revenue growth between 1.8% and 2.4% and adjusted earnings per share between $2.67 and $2.74. Operating margin for the full-year is expected to be roughly 9%.
"We are pleased with our third quarter financial results, which were in line with our guidance for revenue growth and at the high end of our expectations for operating profit performance. During the period, we managed the business well and delivered strong gross margin and effective cost performance, which resulted in GAAP and adjusted operating margins of 8.4% and 8.9%, respectively, ahead of our expectations for the quarter," CEO Carlos Alberini stated.
"Overall, a strong licensing business combined with a disciplined approach to cost management offset softness in some of our direct-to-consumer businesses and drove earnings from operations for the Company that were flat to last year's performance."
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GES Price Action: Shares of GES were down 14.59% at $23.72 in the after-hours session at the time of publication, according to Benzinga Pro.
Photo: Michal Jarmoluk from Pixabay
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