Apparel company, Guess, Inc. (GES) reported a decline in fourth quarter earnings on Thursday, which beat estimates. The company also reported a weak FY2013 outlook.
The Los Angeles, CA based company reported fourth quarter net income of $72.6 million, or 85 cents per share, down -24% from $96 million, or $1.05 per share last year. Excluding special items related to a tax audit dispute in Italy, earnings were $81.4 million, or 95 cents per share. Analysts expected to see earnings of 88 cents per share.
Fourth quarter revenue was $815 million, a 5% increase from $775.8 million last year. Analysts had estimated revenue of $785.29.
Despite the decline in earnings, the GES’s CEO Paul Marciano said that the quarters results were at the high end of the company’s estimates. The decline was primarily due to lower profits in Europe, due to economic uncertainty in some countries. Sales in North America also declined
On the upside, Marciano said that the company saw revenue growth in the double digits in China, Korea, Mexico, and Russia. He said that Guess will continue to try to cut costs and expand into growing markets.
For FY2013, the company is estimating earnings in the range of $1.70 to $1.90 per share. Revenue is expected to be between $2.6 billion and $2.64 billion. Analysts see the company earnings $2.38 per share with $2.77 billion in revenue.
Guess shares were mostly flat during premarket trading Wednesday. The stock has dropped -17% in the past year.
The Bottom Line
Shares of Guess, Inc. (GES) have a 2.97% yield, based on Wednesday’s closing price of $26.95.
Guess, Inc. (GES) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.