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The Markets
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Retail

Guess? beats on revenue, but in-line earnings fail to woo investors

The fashion company forecast EPS between US$0.88 and US$0.99 versus consensus estimates of US$0.97

Guess? Inc (NYSE:GES) released its lukewarm first-quarter earnings after the bell Wednesday.

The fashion retailer reported an earnings loss of US$0.27 per share on revenue of US$521.3mln compared with a loss of US$0.26 per share on revenue of US$454.3mln in the previous year’s first quarter.

The Los Angeles-based company reported an adjusted earnings loss of US$0.23, in line with Wall Street estimates, but its revenue beat estimates of US$508mln.

“Overall, I am very excited by the continued momentum, as the first quarter marks the seventh consecutive quarter of revenue growth for the company. For me, it speaks to the global strength and potential of the Guess brand,” said CEO Victor Herrero in a press release.

READ: Retail Earnings Roundup: Dick’s Sporting Goods crushes estimates, Chico’s disappoints with earnings miss and weak guidance

For its yearly outlook, the company forecast earnings per share between US$0.88 and US$0.99 versus consensus estimates of US$0.97 per share.

Co-founder Paul Marciano took a backseat in February after allegations of sexual misconduct prompted an investigation.

The company recently ended its nine-year legal battle with Gucci over allegations of counterfeiting and trademark infringement, although the terms of the agreement have not been disclosed. Gucci claimed that the Guess logo and diamond pattern were copies of its signature” G” trademark.

Shares of the retailer fell slightly to US$24.27 in Wednesday after-hours trading.

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