Guess? Inc. (NYSE:GES) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5.19%.
Guess? Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 9.52% to $0.95 in the quarter versus EPS of $1.05 in the year-earlier quarter.
Revenue: Rose 5.06% to $815.11 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Guess? Inc. reported adjusted EPS income of $0.95 per share. By that measure, the company beat the mean analyst estimate of $0.87. It beat the average revenue estimate of $785.29 million.
Quoting Management: Paul Marciano, Chief Executive Officer, commented, “Despite a difficult environment, we were able to deliver fourth quarter financial results that were at the high end of our expectations. We continued to direct our expansion efforts towards newer international markets, growing revenues in the double digits in key markets such as Korea, Germany, Greater China, Mexico and Russia. In North America, lower traffic and the promotional environment continued to impact our business while in Southern Europe, the weak economic conditions continue to impact consumer confidence.”
Mr. Marciano continued, “We enter this fiscal year with the expectation that the challenging macroeconomic environment will continue. In our more developed markets, we will continue to invest in marketing and visual merchandising initiatives to improve the performance of our stores while tightly managing expenses and inventories to protect our strong financial position. Already we have made progress in streamlining our operations in these markets that we expect to yield cost savings in the future. At the same time we will continue to invest in under-developed markets where the brand awareness is high but less penetrated.”
Mr. Marciano concluded, “Everything starts and ends with the product we deliver. I strongly believe that the heritage of Guess? is rooted in denim and the Guess? girl looks to us for iconic and sexy styles. Expect to see more on-trend fashion presented in the sexy, iconic Guess? style, coupled with timeless pieces that deliver the quality and value that our customers expect from Guess?.”
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