GES Beats, But Shares Slump

Guess? Inc GES reported record earnings of 72 cents per share for the second quarter of fiscal 2011. The results were higher than analyst expectations. The company’s earnings grew 13% YoY in the quarter ended July 31, 2010. GES also beat its own earnings guidance range of 65 cent to 68 cents. GES has been increasing its presence in Europe and Asia and these regions contributed more than 50% of the revenue growth in the second quarter. This came despite a stronger US dollar. The company’s revenue grew 10.5% to a record high of $577.1 million, which was also ahead of expectations. Revenue was ahead of the guided range of $560 to $575 million. Although all segments contributed to earnings growth, the performance in the Asia segment was particularly healthy. Revenue in the Asia segment jumped 43%. Revenue in the North American wholesale segment rose a robust 33%. Despite the earnings beat, investors were disappointed with the slowdown in GES’ North America retail business. Moreover, the company maintained its projections for fiscal 2011. Guess expects revenue in the range of $2.35 billion to $2.40 billion and earnings per share in the range of $2.80 to $2.85. GES shares nosedived 10.57% to $34.19 at 1:54 pm EDT. Read more from Benzinga's Company news.