Guess Inc. Reports First-Quarter Loss
May 25 2016 - 6:30PM
Dow Jones News
Guess Inc. logged weaker-than-expected results for its first
quarter and swung to a loss as currency headwinds and restructuring
charges hurt the apparel retailer's bottom line.
Shares in the company slipped 1.8% to $16.15 in after-hours
trading.
Following the latest results, the company said it now expects
its adjusted per-share earnings for the year to be between 55 cents
and 75 cents, down from a previous estimate in the range of 65
cents to 85 cents. Analysts surveyed by Thomson Reuters expected
earnings of 77 cents a share on revenue of $2.33 billion.
For the current quarter, the company expects earnings on a
per-share basis of between four cents a share and eight cents a
share. Analysts, on average, were expecting earnings of 11 cents a
share.
"Our first-quarter adjusted operating loss finished at the low
end of our guidance as sales finished below our expectations," said
Victor Herrero, chief executive of the company. "In the Americas,
our retail business in the U.S. and Canada was very challenging,
especially in the month of April."
Guess warned in March that it would post a first-quarter loss.
The company has struggled with dwindling sales—reporting a string
same-store sales declines. In the latest quarter, sales at
established stores in the U.S. and Canada, including online sales,
slipped 4.2%.
Meanwhile, internationally, the strong U.S. dollar has added to
the retailer's troubles by making its goods more costly
overseas.
Over all, for the first quarter, Guess reported a loss of $25.2
million, or 30 cents a share, down from year-earlier earnings of
$3.3 million, or four cents a share.
In the latest quarter, currency woes hurt earnings by eight
cents a share, while restructuring charges and an exit tax produced
a negative impact of seven cents a share. On an adjusted basis, the
company reported a loss of 23 cents
Revenue slid 6.3% to $448.8 million.
Analysts projected an adjusted loss of 19 cents and $464 million
in sales, according to Thomson Reuters.
The company expected to swing to a loss in its first quarter,
estimating a loss of 17 cents a share to 20 cents a share.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
May 25, 2016 18:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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