Guess shares drop 14% as retailer cuts revenue, profit outlook

By Sabela Ojea

Shares of Guess (GES) on Tuesday dropped 14% to $20.30 in after-hours trading after the company cut its revenue and profit outlooks for the year following a third-quarter earnings miss.

The clothing brand and retailer said it expects full-year revenue to grow 1.8% to 2.4%, while it had most recently guided for an increase between 2.5% to 4%.

Stripping out one-time items, the company said it anticipates earnings per share of $2.67 to $2.74, down from a prior forecast of $2.88 to $3.08 per share. Analysts polled by FactSet had forecast higher adjusted earnings per share of $2.96.

"We are navigating through an uncertain shopping environment in many parts of the world impacted by geopolitical issues and lower consumer confidence," Chief Executive Carlos Alberini said.

In the third quarter, Guess posted revenue growth in the lower end range of its outlook, mainly driven by a 7% drop in its Americas retail topline performance, and lower-than-expected adjusted earnings per share.

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11-21-23 1728ET

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