Guess just meets its earnings guidance in Q3, releases full year guidance

By

Obi Anyanwu

Published
Dec 1, 2016

Guess on Wednesday released its third quarter results ended on October 29, 2016.  
Total net revenue increased 2.9% to $536.3 million led by revenue increases in Europe and Asia. The company reported decreases from the Americas retail and wholesale businesses and licensing.

Operating earnings fell 27.4% to $15.1 million from $20.8 million and the operating margins in all regions and the licensing segment decreased. Earnings per share for the quarter also decreased to $0.11 from $0.15.
 
Victor Herrero, Chief Executive Officer, commented, "While I recognize the challenges we are facing in the Americas, due to our various revenue enhancement initiatives, our third quarter revenues increased by 3%. We enjoyed strong double-digit growth in Europe and in Asia, and we remain focused on improving our profitability in North America. Third quarter earnings finished at the low-end of our guidance. Overall we are pleased with the performance of our international businesses. As we reach the end of our transition year, I look forward to fiscal year 2018 with tremendous anticipation and excitement "

Net revenue in the first nine months of fiscal 2017 fell 1.0% to $1.53 billion from $1.55 billion in the previous year, and diluted earnings per share decreased 52.5% to $0.19.
 
In the fourth quarter, Guess expects its consolidated net revenues to increase between 3.5% and 7.5% in US dollars and diluted EPS to range from $0.40 to $0.50. The company expects currency headwinds to negatively impact consolidated revenue growth for the year and expects full year revenue to increase between 0.5% and 1.5% in US dollars.