Dec 4, 2008
Guess profit beats in quarter, but it lowers 2008 view
Dec 4, 2008
SAN FRANCISCO (Reuters) - Guess Inc reported on Thursday, December 4th a 10 percent rise in quarterly net income, beating Wall Street estimates, but the apparel retailer and wholesaler cut its revenue and profit outlook for 2008, sending its shares down more than two percent in after-hours trade.
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Guess, which sells trendy clothing and accessories for women and men in its U.S. and international stores, said third-quarter net income rose to $64.0 million, or 69 cents per share, from $58.3 million, or 62 cents per share, a year earlier.
Analysts, on average, had been expecting earnings of 63 cents per share, according to Reuters Estimates.
Sales rose 12.5 percent in the quarter to $527.9 million, helped by growth in all segments.
But operating margins fell, due to negative same-store sales growth in North America and higher costs in Europe from infrastructure investments, the company said.
For fiscal 2008, Los Angeles-based Guess said it now expects earnings between $2.27 to $2.32 per share from an earlier view given in September of $2.47 to $2.53.
Revenue is now expected at $2.03 billion to $2.07 billion, down from an earlier outlook of $2.06 billion to $2.11 billion.
Guess shares fell to $13.65 in extended trading from their close of $13.96 on the New York Stock Exchange. (Reporting by Alexandria Sage; Editing by Bernard Orr)
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