Guess Inc. Falls 8% After Clothing Firm Misses on Adjusted EPS and Lowers Full-Year Guidance

Jerry Kronenberg wrote a column · Aug 29, 2024 05:13

Guess? Inc. fell some 8% after hours Wednesday after the clothing-and-accessories firm missed analyst estimates for fiscal Q2 earnings and lowered guidance for its fiscal year as a whole.

$Guess (GES.US)$ shed 8.3% to $18.54 shortly before 5:15 p.m. ET after the retailer said it earned an adjusted $0.42 per share in its fiscal Q2 ended Aug. 3. That's down 41.7% from the $0.72 per share that Guess rang up in the same period last year, as well as below the $0.43 EPS that analysts' consensus estimates reportedly called for.

Still, Guess said quarterly revenues came in at $732.6 million – up 10.3% from $664.5 million in the same period last year and better than the $730 million analysts had reportedly expected.

Nonetheless, Guess lowered its guidance for fiscal 2025 as a whole to $2.42-$2.70 for adjusted EPS, although it sees revenues as rising 9.5% to 11% in dollar terms year over year.

"As we look into the second half of the year, we are adjusting our outlook for revenues and earnings to reflect the softer consumer environment," CEO Carlos Alberini said in releasing the forecast." For us, this is a year of transformation and investment – a year when our business is further diversifying with new brands in our portfolio that have significant opportunities for growth and value creation."

Guess operates more than 1,000 retail stores worldwide to sell its jeans, handbags and other consumer goods.

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