Guess Inc. (NYSE:GES) reported its results for the third quarter. Net income for Guess Inc. fell to $66.3 million (71 cents per share) vs. $69.1 million (75 cents per share) a year earlier. This is a decline of 4% from the year earlier quarter. Revenue rose 4.7% to $642.8 million from the year earlier quarter. GES fell short of the mean analyst estimate of 74 cents per share. Analysts were expecting revenue of $655.2 million.
Paul Marciano, Chief Executive Officer, commented, “We are pleased to deliver third quarter earnings consistent with our expectations, even as economic pressures have intensified and are affecting consumer confidence in many of our markets, particularly in Europe. During the quarter, we made good progress on many key strategic initiatives. Our efforts to elevate our brand in North America are yielding significant improvements in profitability. We enjoy momentum in Asia and the newer markets in Europe where our brand is well known but where our business is still under-penetrated. And we are focusing on sound execution, managing our inventories, expenses and capital prudently.”
Competitors to Watch: Liz Claiborne, Inc. (NYSE:LIZ), The Wet Seal, Inc. (NASDAQ:WTSLA), Express, Inc. (NYSE:EXPR), Destination Maternity Corp. (NASDAQ:DEST), The Cato Corporation (NYSE:CATO), bebe stores, inc. (NASDAQ:BEBE), Cache, Inc. (NASDAQ:CACH), Carter’s, Inc. (NYSE:CRI), The Talbots, Inc. (NYSE:TLB), and Ascena Retail Group Inc (NASDAQ:ASNA).
Tiffany & Co. (NYSE:TIF) reported net income above Wall Street’s expectations for the third quarter. Net income for Tiffany & Co. rose to $89.7 million (70 cents per share) vs. $55.1 million (43 cents per share) in the same quarter a year earlier. This marks a rise of 62.9% from the year earlier quarter. Revenue rose 20.5% to $821.8 million from the year earlier quarter. TIF beat the mean analyst estimate of 59 cents per share. It beat the average revenue estimate of $799.5 million.
Michael J. Kowalski, chairman and chief executive officer, said, “Increased sales in all regions contributed to the continuation of strong worldwide sales growth in the third quarter. We were also pleased to achieve an improved operating margin by leveraging the sales growth against fixed costs.”
Competitors to Watch: Zale Corporation (NYSE:ZLC), Blue Nile, Inc. (NASDAQ:NILE), DGSE Companies, Inc. (AMEX:DGSE), Coach, Inc. (NYSE:COH), Signet Jewelers (NYSE:SIG), Amazon.com (NASDAQ:AMZN), eBay (NASDAQ:EBAY), Nordstrom (NYSE:JWN) and Macy’s (NYSE:M).