Guess Swings To Profit, Q2 Guidance Weak; Lifts FY Outlook

(RTTNews) - Fashion house Guess? Inc (GES) on Tuesday reported first-quarter net earnings of $3.3 million or $0.04 per share compared with a loss of $2.1 million or $0.03 per share last year.

Revenues for the quarter were down 8% at $478.8 million compared with $522.5 million in the prior year.

Analysts polled by Thomson Reuters estimated a loss of $0.05 per share on revenues of $483.8 million for the quarter. Analysts' estimates typically exclude special items.

In constant currency, sales were roughly flat compared with a year ago.

The company said it benefited from an improvement in both gross margin and operating margin in the quarter.

For the second quarter, Guess expects earnings of $0.12 to $0.16 per share and sales to decline in the range of 13% to 11%. Analysts expect earnings of $0.18 per share and sales to decline 8.4%.

For the full year 2016, the company now expects earnings of $0.86 to $1.02 per share and sales to decline in the range of 8.5% to 6.5%. Earlier it expected earnings of $0.75 to $0.95 per share and sales to drop 9% to 7%.

Analysts expect earnings of $0.87 per share and sales to decline 7% for the year.

Guess said its sales guidance includes unfavorable currency impact.

The company also announced a quarterly cash dividend of $0.225 per share.