Guess, Inc.(NYSE:GES) announced its results for the latest quarter, with earnings dropped below predictions as the apparel maker’s transformations isn’t yet prove successful amid constant weakness in the US market.
Guess?, Inc.(NYSE:GES) is going through the big shakeup in which it vowed to slash costs, push through restructuring plans and breathe life into its fraught sales.
Company’s Chief Executive Victor Herrero claimed that those investments were likely to start making revenue growth in the third quarter.
During the quarter, company’s revenue go up mere 2.9% to $536 million that was well under the 5% to 8% growth, or roughly $554 million the company had expected.
Meanwhile Guess sales at stores open at least a year plunged 4.9%, that was more than 4.2% drop in the second quarter. Guess has been reporting same-store sales declines since the start of 2011.
Similar to most of the brick-and-mortar-based retailers, from specialty shops to the department stores where Guess also vends its products, the company has had to deal with with dropping foot traffic as shoppers prefer to go online to buy stuff.
Furthermore US retail income the biggest contributor to the top line, dropped almost 4.7%. Though sales in regions like Europe and Asia, surged almost 16% and 10%, respectively, boosted by new store openings and sustained strong comparable-store sales.
Including everything, Guess reported a profit of $9.7 million, or 11 cents a share, down from $13.1 million, or 15 cents a share, year over year, in the most recent period.
The company however was expecting profits to fall between 11 cents to 16 cents in per-share.
Guess also dropped its full year earnings expectation, now for year ending in January, the company predicts to post 42 cents to 52 cents in adjusted earnings that was a drop from earlier forecast of 62 cents to 75 cents a share.