Struggling Guess Still Beats Expectations
June 4, 2009 by Mark Ellis
Filed under Business
Things aren’t looking great for clothing company Guess: according to a report issued by the company, fiscal first-quarter profits are down significantly. The silver lining on the cloud, though, is that because the company’s expectations were set even lower, Guess stocks rose in value during after-hours trading.
Guess profits have fallen from 32 percent, from $47.8 million, or 50 cents per share, this time last year to $32.5 million, or 35 cents per share. Analyst predictions had Guess doing much worse, with the average estimate somewhere around 29 cents per share.
During this time period, revenue fell 10 percent to $441.2 million, forcing the company to adapt by cutting costs and letting go of inventory. According to CEO Paul Marciano, Guess is not caught off-guard by the situation. Rather, he attributes it to the economic crisis and remains confident that Guess is poised to eventually emerge from its struggle.
Image: Flickr
