NEW YORK - Shares of Guess? Inc . (NYSE:GES) fell sharply in after-hours trading on Tuesday after the apparel retailer reported third quarter earnings that missed expectations and provided weaker-than-anticipated guidance for the full year.
The disappointing results and outlook sent Guess shares tumbling 7.8% in after-market trading.
Guess posted adjusted earnings per share of $0.34 for the third quarter, falling short of the $0.37 analysts were expecting. Revenue came in at $739 million, below the consensus estimate of $748.22 million.
For the full fiscal year 2025, Guess now expects earnings per share between $1.85 and $2.00, well below analysts' projections of $2.50. The company forecasts revenue growth of 7.1% to 8.1% for the year.
"Based on our recent trends and other external factors impacting our business including currencies, freight costs and taxes, we are revising our fourth quarter outlook for revenues and earnings," said CEO Carlos Alberini.
Alberini noted that slow customer traffic in North America and Asia is expected to persist in the fourth quarter, negatively impacting the business. As a result, Guess now expects full year revenues at or slightly below $3 billion.
Despite the challenges, Alberini said the company remains focused on its growth vision and has "a powerful platform and a strong team that continues to adapt to our new model to create significant value for our shareholders over the long term."
For the third quarter, Guess reported revenue growth of 13% year-over-year to $738.5 million. However, operating margin declined to 5.7% from 8.4% in the same quarter last year.
The company said all operating segments posted revenue growth except for Licensing. Europe revenues increased 7%, while Americas Retail rose 12% and Americas Wholesale jumped 79%.
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