If you have never heard that investing into apparel companies is effectively a bit like investing in a new company three times a year, look no further than the reminder in shares of Guess?, Inc. (NYSE: GES) this Thursday. The apparel maker reported earnings which were in line with estimates, but it sees a weak first quarter ahead.
The company is now calling for a first-quarter profit in a range of $0.25 to $0.28 per share and revenues were put around $575 million. Analysts are looking for $0.50 EPS and $610.35 million in revenues. For all of 2013, Guess sees earnings of $2.50 to $2.65 per share against estimates of $3.18 per share.
Shares were down 12% initially after the earnings guidance last night and that level seems to be holding this morning with a pre-market drop on Thursday of 11.4% to $36.70. Guess has a 52-week trading range of $25.99 to $45.73.
JON C. OGG