Guess stock drops more than 5% on quarterly miss, lower outlook

Shares of Guess Inc. fell more than 5% in the extended session Tuesday after the retailer reported mixed quarterly results and guidance that was below estimates. Guess earned $21.8 million, or 34 cents a share, in the fiscal third quarter, compared with $29.9 million, or 45 cents a share, in the year-ago quarter. Adjusted for one-time items, Guess earned 44 cents a share. Sales fell 2% to $633.4 million. Analysts polled by FactSet expected adjusted earnings of 55 cents a share on sales of $614 million. “We are well positioned for our holiday period,” Chief Executive Carlos Alberini said in a statement. “We have a solid business plan and inventory levels are well aligned with our business trends. Our updated outlook for the fiscal year reflects these trends and the impact of further currency headwinds.” Guess said it expects fiscal 2023 fourth-quarter revenue to be down around 3.5% from the fourth quarter of fiscal 2022. For the full fiscal 2023, revenues are seen up around 2% over fiscal 2022, Guess said. Guess guided for fiscal fourth-quarter adjusted EPS of $1.32 and fiscal 2023 adjusted EPS of $2.35, both below FactSet consensus of $1.48 a share and $2.63 a share, respectively. Shares of Guess ended the regular trading day up 1.5%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.