Guess (GES) reports earnings Wed 28 Aug 2013 a/h

** before earnings **

  

** after earnings **

After Hours: 32.36 +5.05 (18.49%)

Guess? beats by $0.17, beats on revs; guides Q3 EPS below consensus, revs in-line; raises FY14 EPS in-line, lowers FY14 revs in-line (GES) 27.31 +0.08 : Reports Q2 (Jul) earnings of $0.52 per share, $0.17 better than the Capital IQ Consensus Estimate of $0.35; revenues rose 0.5% year/year to $639.0 mln vs the $622.87 mln consensus.

Co issues guidance for Q3, sees EPS of $0.34-0.38 vs. $0.40 Capital IQ Consensus Estimate; sees Q3 revs of $610-620 mln vs. $614.52 mln Capital IQ Consensus Estimate. 

Co issues in-line guidance for FY14, raises  EPS of $1.78-1.92 from prior guidance of $1.70-1.90 vs. $1.81 Capital IQ Consensus Estimate;lowers FY14 revs to $2.56-2.59 bln from prior guidance of $2.57-2.61 bln vs. $2.58 bln Capital IQ Consensus Estimate. 

Comparable store sales for the second quarter of fiscal year 2014 decreased 2.0% in U.S. dollars and 1.7% in constant currency compared to the same period a year ago. The Company directly operated 507 retail stores in the United States and Canada at the end of the second quarter of fiscal 2014 versus 511 stores a year earlier. 

North American Retail revenues increased 1%; retail comp sales decreased 2%. European revenues increased 1% in U.S. dollars and decreased 3% in local currency. Asian revenues decreased 1% in U.S. dollars and 4% in constant currency. 

"We are very encouraged by the improvements in the trends of our North American Retail business in the second quarter, reflecting the enhancements in our product assortments. However, the economic climate in Southern Europe continues to be challenging and we are beginning to see a slowdown in China. Therefore, although we are encouraged by our overall results in the first half of fiscal 2014, the outlook for consumer spending in Southern Europe and China remains uncertain and we are planning our business accordingly."

During the first and second quarters of fiscal 2014, the Company implemented plans to streamline its operational structure and reduce expenses. The Company's adjusted outlook for the full year excludes the impact of the restructuring charges recorded in the first six months of fiscal 2014, which reduced GAAP net earnings by $8.5 million ($6.2 million net of tax), or approximately $0.08 per share. The Company's expectations for the third quarter ending November 2, 2013, and the Company's adjusted and GAAP outlook for the fiscal year ending February 1, 2014, also exclude the impact of any restructuring charges that may be recorded in the remainder of fiscal 2014.