Shares of Guess?, Inc. (GES) experienced a significant decline, dropping 11.2% during after-hours trading on Tuesday, and continued to fall by approximately 13% in pre-market trading on the NYSE. This downturn followed the company's reduction of its fiscal 2025 forecast, subsequent to a reported loss in its third quarter.
Looking ahead to the fourth quarter, Guess? expects earnings per share (EPS) to be in the range of $1.10 to $1.22, with adjusted EPS projected between $1.37 and $1.52. The company anticipates a net revenue increase of 2.2% to 5.4%.
Analysts polled by Thomson Reuters had forecasted GES to achieve an EPS of $1.96 for the January quarter, typically excluding any special items from their calculations.
For the fiscal year 2025, Guess? has revised its EPS projections to between $0.70 and $0.82, with adjusted EPS anticipated to be $1.85 to $2.00. In contrast, analysts expected the company to report an EPS of $2.50 for the year.
Previously, the company had forecasted EPS in the range of $1.92 to $2.14, with adjusted EPS between $2.42 and $2.70. Expected revenue growth has also been adjusted to 7.1% to 8.1%, down from past expectations of a 9.5% to 11.0% increase.
Furthermore, Guess? announced a quarterly cash dividend of $0.30 per share, payable on December 27 to shareholders of record as of the close of business on December 11.
In the third quarter, the company reported a net loss of $23.40 million, or $0.47 per share, compared to a profit of $55.70 million, or $0.82 per share, in the prior year. Adjusted net income decreased to $17.67 million, or $0.34 per share, from $27.01 million, or $0.49 per share, a year ago.
Analysts had anticipated a profit of $0.37 per share for the third quarter.
Total revenue rose to $738.52 million from $651.17 million the previous year. CEO Carlos Alberini attributed the growth primarily to the acquisition of Rag & Bone, along with stable growth in other areas.
On Tuesday, GES closed at $17.33 on the New York Stock Exchange, a decrease of 3.94%. During extended trading, the stock fell an additional 11.19% to reach $15.39. In pre-market activity, shares were down 12.69% to $15.13.
