Guess Reports Loss, Cuts Target for Year
Guess Inc. on Thursday posted a second-quarter loss and cut its outlook for the year, citing reduced expectations for both retail and wholesale businesses.
The Los Angeles-based apparel company said it had a net loss of $6.4 million, or 15 cents a share, in the second quarter, contrasted with a profit of $1.5 million, or 3 cents, in the year-earlier period.
The loss from operations was $9.4 million, contrasted with operating earnings of $5.6 million a year ago, Guess said. Net sales declined 21% to $119.8 million.
Revenue from Guess stores fell 4% to $83.2 million, with sales at stores open at least a year down 7.4%. Guess said same-store sales during July probably would be down in the low-to-mid single digits.
The company had lowered its second-quarter outlook on July 3 to a loss of 16 cents to 18 cents, from a previous forecast of a loss of 12 cents to 14 cents, and said June same-store sales had dropped 6.2% year-on-year.
Guess said it expects revenue in the second half of 2002 to decline about 5% from last year’s second half. For the full year, it estimates earnings of 4 to 8 cents, including 8 to 10 cents in the third quarter and 19 to 21 cents in the fourth.
Other California companies reporting earnings:
* DaVita Inc., an operator of dialysis centers, reported net income of $8 million, or 13 cents a share. The Torrance company said excluding one-time gains and losses, its earnings were $35 million, or 41 cents, for the quarter ended June 30.
* Rubio’s Restaurants Inc. reported a 41% jump in second-quarter net income to $1.13 million, or 12 cents a share, beating the Carlsbad company’s guidance of 8 cents to 10 cents. Revenue grew 6.2% to $30.7 million. Rubio’s also raised its profit forecast for the full year to a range of 24 cents to 27 cents from its previous guidance of 22 cents to 25 cents. For the third quarter, it expects earnings of 9 cents to 10 cents, including expenses related to a menu upgrade.
* Merisel Inc. reported second-quarter net income of $91,000, or 1 cent a share, helped by adjustments related to the write-down of its U.S. hardware distribution business, which reduced the cost of sales by $810,000. In the year-ago quarter, the El Segundo-based software distributor had a net loss of $24.2 million, or $3.02 a share, including a $29.4-million charge related to the sale of its Canadian distribution business. Revenue dropped 85% to $17.8 million
* Unova Inc. of Woodland Hills reported second-quarter net income of $22.3 million, or 38 cents a share, compared with a net loss of $2.8 million, or 5 cents, a year ago. The results in both periods include several one-time charges and gains. Revenue declined 16% $355.2 million.
