Guess’ 4th-Quarter Profit Increases 26.5%

Los Angeles-based clothing company Guess Inc. reported fourth-quarter net earnings of $11.9 million, up 26.5% from the same quarter a year earlier and slightly higher than predicted on Wall Street. The company’s revenue climbed 12.3% to $139.3 million during the quarter. For all of 1996, Guess posted profit of $52.3 million on revenue of $551.2 million. That reflects a 20.8% rise in profit and a 13.2% gain in revenue from 1995. Maurice Marciano, the company’s chairman and chief executive, attributed the improved performance largely to growth in wholesale operations overseas, along with increases in the company’s U.S. retailing business and in licensing operations. The company, target of a union-organizing campaign in Los Angeles, recently announced plans to shift much of its production from Southern California to Latin America to cut costs. Guess shares lost 25 cents to close at $13 on the New York Stock Exchange.