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Investing.com — Guess? cut its outlook on full-year earnings Tuesday after the apparel maker reported mixed third-quarter results as earnings fell short of estimates as a stronger dollar and a ramp-up in promotions hurt margins.
Guess? (NYSE:GES) fell by more than 5% in afterhours trading following the report.
Guess reported adjusted EPS of 44 cents missing estimates of earnings of 55 cents a share, while revenue of $633.0 million beat estimates of $614.0M.
The miss on the bottom line was driven by a fall in margin growth to 8.6% from 10.2% in the same period a year earlier, as a “result of the adverse currency impact associated with the strong U.S. dollar and lower full price selling,” the company said.
For Q4, the company expects adjusted EPS of $1.32, compared with Wall Street estimates for $1.48 a share.
The company cut its outlook on full-year results, forecasting adjusted EPS of $2.35, compared with $2.65 a share a year earlier. Revenue growth was revised higher to 2% from 1.5% previously.
