Guess Inc. said Thursday that its net income fell 32 percent in its fiscal first quarter, which beat Wall Street expectations. The apparel company also gave a brighter outlook for the current quarter.
After the markets closed, the Los Angeles apparel retailer and wholesaler reported net income of $32.5 million (35 cents per share) in the quarter ended May 2, compared with net income of $47.8 million (50 cents) a year ago. Revenues fell 10 percent to $441 million.
Analysts surveyed by Reuters Estimates, on average, had expected a profit of 29 cents per share. The company itself had been expecting earnings of 26 cents to 30 cents on revenue of $425 million to $445 million, but lower inventory and reduced spending improved results.
Guess said it expects second quarter net income to range between 42 cents and 45 cents. Analysts are expecting 37 cents.
?e expect the challenging economic conditions to persist for some time,?Chief Executive Paul Marciano said in a statement. ?e remain committed to our international expansion strategy, and continue to see opportunities in Europe and Asia where our brand is well known but underpenetrated.?p>Guess shares, which closed down 95 cents, or 3 percent, to $27.04 on the New York Stock Exchange, were up 5 percent in after-market trading.
