Guess' stock jumps 14% as retailer's sales in Europe and Asia grow

Shares of Guess Inc. (GES) rallied 14% in the extended session Wednesday after the retailer's fiscal second-quarter sales topped Wall Street estimates. Guess earned $39 million, or 59 cents a share, in the quarter, compared with $24 million, or 35 cents a share, in the year-ago period. Adjusted for one-time items, Guess earned 72 cents a share. Revenue rose 3% to $664.5 million, from $642.7 million a year ago. Analysts polled by FactSet expected adjusted earnings of 71 cents a share on sales of $661 million. Sales in Europe grew 9% and sales in Asia were up 19%, offsetting revenue declines in Guess's Americas retail and wholesale businesses, the company said. Guess guided for fiscal third-quarter EPS between 55 cents and 64 cents, and EPS for fiscal 2024 between $2.88 and $3.08. "Most of our businesses delivered better than expected operating results, driven by solid revenue performance, strong gross margin results and effective cost management," Chief Executive Carlos Alberini said in a statement. Shares of Guess ended the regular trading Wednesday up 0.7%.

-Claudia Assis

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08-23-23 1634ET

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