=Guess? (GES) reported earnings on Wed 30 October 2016 (a/h)

Guess' (GES) Q3 Earnings, Sales Miss; 2018 View Lowered

After reporting an earnings beat in the second quarter of fiscal 2017, apparel retailer Guess’, Inc. GES succumbed to a negative surprise of 21.4% during the third quarter. In fact, we note that in the trailing four quarters (including the quarter under review), the retailer has missed the consensus mark thrice. The dismal performance weighed upon the stock and its price dipped 13.2% in the pre market trading on Dec 1, 2016, a day after the company released its earnings.

In fact, so far this year, the shares of this apparel retailer have declined 18.9%, underperforming the Zacks Categorized Textile-Apparel Manufacturing market, which has showcased a decline of 6.5%.

Guess’ reported adjusted earnings of 11 cents per share, which missed the Zacks Consensus Estimate of 14 cents by 21.4%. Earnings came in at the lower end of management’s projected earnings range of 11–16 cents. Further, the bottom line declined 26.7% from the year-ago result. However, currencies did not have a meaningful impact on diluted earnings per share in the third quarter of fiscal 2017. Soft results compelled management to lower fiscal 2018 guidance during the quarter.