Why Guess Shares Are Falling Today

Guess?, Inc. GES shares are trading lower by 5.87% to $18.59 Wednesday morning after the company reported mixed third-quarter financial results.

What Happened?

Guess? reported quarterly earnings of 44 cents per share which missed the analyst consensus estimate of 55 cents. The company also reported quarterly sales of $633.40 million, which beat the analyst consensus estimate of $614.00 million by 3%.

For the nine months ended October 29, 2022, Guess? recorded adjusted net earnings of $62.9 million, a 47.4% decrease from $119.5 million for the same prior-year period. Adjusted diluted EPS decreased 40.8% to $1.06, compared to $1.79 for the same prior-year period.

Carlos Alberini, Chief Executive Officer, commented, "We are pleased with our third quarter financial results, which exceeded our revenue and operating profit expectations in a challenging retail environment. Our revenues decreased by almost 2% in U.S. dollars but grew 10% in constant currency, driven primarily by the strength of our business in Europe.

"For the period, we managed the business well and delivered an 8.6% operating margin and $55 million in operating profit. Lower performance-based compensation helped us partially offset the gross margin pressure we experienced as a result of the adverse currency impact associated with the strong U.S. dollar and lower full price selling," Alberini stated.

According to data from Benzinga Pro, Guess? has a 52-week high of $25.27 and a 52-week low of $14.27.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Small CapMoversTrading Ideaswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!