Guess? Shares fall 10% as earnings miss, guidance disappoints By Investing.com

NEW YORK – The shares of Guess? Inc. (NYSE: GES ) fell nearly 10% in after-hours trading Wednesday after the apparel retailer reported second-quarter earnings that missed estimates and provided weaker-than-expected guidance for the full year .

The company reported adjusted earnings per share of $0.42 for the second quarter, missing analysts’ expectations of $0.44. Revenue was $732.6 million, slightly above the consensus estimate of $731.01 million.

While revenue grew 10% year over year, Guess? cut its full-year outlook, now expecting fiscal 2025 revenue of $2.42 billion to $2.7 billion. That range is below Wall Street’s estimate of $2.79 billion.

“As we look to the second half of the year, we are adjusting our revenue and earnings outlook to reflect the softer consumer environment,” said Carlos Alberini, chief executive.

The company’s operating margin in the second quarter fell to 6.5 percent from 9.7 percent in the same period last year. Adjusted operating margin fell to 5.2% from 9.8%.

Guess? cited higher expenses, the impact of newly acquired businesses and increased promotions as factors pressuring margins. However, the company noted that higher initial margins and revenue provided some compensation.

For the third trimester, Guess? expects revenue growth between 14.5% and 16.5% and adjusted earnings per share between $0.33 and $0.45.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.