Guess Q1 Loss In Line With Wall Street Estimates

(RTTNews) - Apparel retailer Guess Inc. (GES) Wednesday reported a first-quarter earnings that came in line with Wall Street expectations, while revenues trumped estimates.

Guess reported first-quarter loss of $21.2 million or $0.27 per share, compared with $21.3 million or $0.26 per share last year.

Adjusted loss for the quarter narrowed to $17.8 million or $0.23 per share from $19.4 million or $0.24 per share. Analysts polled by Thomson Reuters estimated loss of $0.23 per share for the quarter.

Revenues for the quarter increased 14.7% to $521.3 million from $454.3 million last year. Analysts had a consensus revenue estimate of $508.02 million for the quarter.

Americas retail revenues dropped 1.4 percent, while wholesale revenue increased 13.4 percent. For the quarter, revenues at European business segment gained 24.2 percent and Asia revenues increased 32.6 percent.

CEO Victor Herrero said, "Overall, the Company revenues increased 15% in U.S. dollars and 8% in constant currency, driven by continued momentum in Europe and Asia. We were also able to expand the Company's operating margin, despite cost pressures related to our transition to our new distribution center in Europe."

Herrero concluded, "Overall, I am very excited by the continued momentum, as the first quarter marks the seventh consecutive quarter of revenue growth for the Company."

Looking forward to the second quarter, Guess expects adjusted earnings of $0.27 to $0.30 per share and revenues to increase between 14.0 to 15.5 percent. Analysts currently estimate earnings of $0.30 per share and revenues to increase 8.40 percent.

For the full year, Guess expects revenue growth of 8.5 to 9.5 percent and earnings of $0.88 to $0.99 per share. Analysts currently estimate earnings of $0.97 per share on revenue growth of 7.60 percent for the year.

GES closed Wednesday's trading at $24.33, down $0.26 or 1.06%, on the NYSE. The stock further dropped $0.42 or 1.73% in the after-hours trading.