Guess Issues Third-Quarter Profit Warning

Clothing retailer Guess Inc. said it expects third-quarter earnings to fall below expectations, and it warned of a cautious outlook as a sluggish retail environment continues to wreak havoc on apparel companies. Los Angles-based Guess, which specializes in fashion apparel for teens and young adults, said it expects to report third-quarter earnings of 35 cents to 38 cents a share versus financial analysts’ consensus estimate of 44 cents. Co-Chief Executive Paul Marciano said Guess stores have seen strong sales of fashion clothing, but sales of the company’s “basics” apparel have been slow. Its shares, which have recovered somewhat from levels below $15 a share this summer, closed up 44 cents at $19.81 on the NYSE. The earnings warning came after the market had closed.