Guess Earnings: Revenue Sees Decline After Four Consecutive Quarters of Increases, Net Income Falls

Guess Inc. (NYSE:GES) reported its results for the first quarter. Guess designs, markets, distribute and licenses a leading lifestyle collection of contemporary apparel and accessories for men, women and children.

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Guess Earnings Cheat Sheet for the First Quarter

Results: Net income for Guess Inc. fell to $26.6 million (30 cents per share) vs. $42.7 million (46 cents per share) a year earlier. This is a decline of 37.7% from the year-earlier quarter.

Revenue: Fell 2.2% to $579.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Guess Inc. beat the mean analyst estimate of 27 cents per share. Analysts were expecting revenue of $569.9 million.

Quoting Management: Paul Marciano, Chief Executive Officer, commented, “We are pleased to deliver first quarter financial results that exceeded both our top and bottom line expectations, even as economic conditions remained challenging in many markets. We continued to focus our efforts on growing in newer international markets, and we succeeded, expanding in key markets such as China, Germany and Russia. While we did face economic headwinds in southern Europe, our brand remains strong there and our business is stable. Our global licensing business outperformed expectations, even as our licensees encountered many of those same economic challenges.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 17.3%.

The company beat estimates last quarter after meeting expectations in the fourth quarter of the last fiscal year with net income of $1.05 per share.

Net income has dropped 14.7% year-over-year on average across the last five quarters. Performance was hurt by a 37.7% decline in the most recent quarter from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 81 cents per share to 62 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $2.62 per share, down from $3.31 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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