Guess Shares Fall on Sales Warning
Guess Inc. shares declined Thursday after the jeans and fashion retailer warned of moderated sales growth for the first quarter.
Stock of the Los Angeles-based company fell $6.05, or 13.1%, to $40.15 in heavy trading.
For the first quarter, Guess expects same-store sales, or sales at stores open a year or more, to rise 10%. The company expects overall sales to rise in the mid-teen percentage range, a slower rate of growth than in the last couple of quarters.
Wall Street had expected revenue of about $249.6 million, about 16% higher than revenue of $215.6 million in the same quarter a year earlier.
During a conference call, Chief Operating Officer Carlos Alberini noted that the snowstorms in the Northeast and the occurrence of Easter in April in 2006, rather than in March as in 2005, would hurt comparisons.
On Thursday, Guess reported that its fourth-quarter earnings rose sharply to $25.8 million, or 57 cents a share, from $14.9 million, or 33 cents a share, a year earlier. Those earnings beat the 49 cents a share expected by Wall Street.
Revenue rose 24% to $276.6 million from $224 million, also exceeding Wall Street’s expectations. Same-store sales rose 15.9% in the quarter.
Also
* Toy maker LeapFrog Enterprises Inc. on Thursday reported higher-than-expected fourth-quarter profit, but revenue missed analyst targets, sending its shares down nearly 10%. The Emeryville, Calif.-based maker of LeapPad electronic books also said its president was resigning.
Net income was $14.4 million, or 23 cents a share, contrasted with a loss of $7.53 million, or 12 cents, a year earlier. Sales fell 3% to $248.8 million. LeapFrog shares fell $1.21 to $11.44.
* First American Corp. said Thursday that its fourth-quarter earnings rose sharply, helped by improved operating efficiencies thanks to offshore data processing. Net income for the nation’s largest data provider rose to $117.5 million, or $1.19 a share, compared with $70.4 million, or 76 cents, a year earlier.
Revenue in the fourth quarter rose 23% to $2.2 billion. Shares of the Santa Ana-based company fell $1.89 to $43.06.
* Los Angeles-based Reliance Steel & Aluminum Co. said fourth-quarter profit surged 41% on improved metals demand and prices. Net income rose to $60.6 million, or $1.81 a share, from $43 million, or $1.31, a year earlier. Sales rose 17% to $868.7 million. Reliance shares rose $3.95, or 5%, to $82.12.
* Watson Pharmaceuticals Inc. said its fourth-quarter profit fell 63%, in part because of the cost of launching products, higher research and development costs and an accounting change. The Corona-based drug company posted net income of $20.1 million, or 19 cents a share, versus a profit of $54.6 million, or 46 cents, a year earlier. Revenue fell 1% to $418.8 million. Watson shares fell 9 cents to $32.50.
