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Guess? stock falls after slight fiscal 1Q revenue miss

The Los Angeles designer was hurt by higher operating costs, impairment charges and weakness in sales from Asia.

A Guess storefront
Guess, established in 1981 by the Marciano brothers, is credited with helping redefine denim, though the company has struggled in more recent years

Guess Inc (NYSE:GES) stock fell Friday after the apparel and accessories maker missed consensus estimates for revenue, but narrowed losses for its fiscal first quarter.   

For the quarter ended April 2019, posted a loss of $0.25 per share on revenue of $536.7 million. The consensus estimate called for a loss of $0.26 per share on revenue of $539.5 million. Revenue grew 3.0% on a year-over-year basis.

Shares of the Los Angeles designer fell 5.8% to $14.77 on the news.

READ: Guess stock swoons on disappointing 3Q results; Lands' End rallies

The company said it expects second-quarter earnings of $0.27 to $0.30 per share on revenue of $671.7 million to $678.2 million. The current consensus estimate calls for $0.42 per share on revenue of $674.8 million for the quarter ending July 31, 2019.

The designer was hurt by higher operating costs, impairment charges and sales weakness in Asia.

“Our business in the Americas and Europe posted strong revenue growth, which was partially offset by weakness in Asia,” said CEO Carlos Alberini in a statement. “During the quarter we were also able to complete a convertible debt transaction at very favorable terms to deploy funds to buy back company shares.”

Guess, established in 1981 by the Marciano brothers, is credited with helping redefine denim, though the company has struggled in more recent years.

Guess co-founder Paul Marciano resigned as executive chairman in January last year following an internal investigation which determined he exercised “poor judgment” in some situations with models and photographers.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

Quick facts: Guess

Price: 19.8 USD

NYSE:GES
Market: NYSE
Market Cap: $1.3 billion
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