NEW YORK - Shares of Guess? Inc. (NYSE: GES) plunged nearly 10% in after-hours trading on Wednesday after the apparel retailer reported second quarter earnings that missed estimates and provided weaker-than-expected full-year guidance.
The company reported adjusted earnings per share of $0.42 for the second quarter, falling short of analyst expectations of $0.44. Revenue came in at $732.6 million, slightly above the consensus estimate of $731.01 million.
While revenue grew 10% year-over-year, Guess? lowered its full-year outlook, now expecting fiscal 2025 revenue between $2.42 billion and $2.7 billion. This range falls below Wall Street's forecast of $2.79 billion.
"As we look into the second half of the year, we are adjusting our outlook for revenues and earnings to reflect the softer consumer environment," said Carlos Alberini, Chief Executive Officer.
The company's second quarter operating margin declined to 6.5% from 9.7% 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 initial markups and higher revenues provided some offset.
For the third quarter, Guess? expects revenue growth between 14.5% and 16.5% and adjusted earnings per share between $0.33 and $0.45.
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