Guess outlook disappoints; shares slide

Los Angeles clothing company Guess Inc. gave a disappointing outlook for the rest of the year, sending its shares down 3% in after-hours trading.

The company, best known for its jeans, said Wednesday it expects earnings of 71 to 74 cents per share in the third quarter on revenue of $650 million to $665 million. That compares with analysts’ average estimate for earnings of 84 cents per share and revenue of $687.9 million, according to Thomson Reuters I/B/E/S.

For the full year, Guess forecast adjusted earnings of $3.25 to $3.35 per share on revenue of $2.74 billion to $2.78 billion. Analysts were expecting $3.43 per share on revenue of $2.78 billion.

In the just-ended second quarter, net income fell to $60.7 million, or 65 cents per share, from $66.8 million, or 72 cents, a year earlier.

Excluding one-time items, earnings were 84 cents per share, topping analysts’ average estimate of 81 cents per share.

Quarterly revenue jumped to $677.2 million from $577.1 million a year earlier.

Shares fell 3% to $32.24 in after-hours trading following the earnings report. They had closed earlier at $33.29.