Guess’, Inc. (NYSE: GES) reported fiscal third-quarter financial results after markets closed on Wednesday. The company said that it had $0.11 in earnings per share (EPS) and $536.3 million in revenue. Thomson Reuters had consensus estimates that called for $0.14 in EPS and $548.37 million in revenue. The same period from last year had $0.15 in EPS and $520.96 million in revenue.
Americas Retail revenues decreased 4.7% in U.S. dollars and 4.6% in constant currency; retail comp sales including e-commerce decreased 4.9% in U.S. dollars and 4.8% in constant currency.
On the international side, Europe revenues increased 16.4% in U.S. dollars and 16.8% in constant currency. Asia revenues increased 9.8% and 6.4% in constant currency.
In terms of the outlook for the fiscal fourth-quarter, the company expects EPS to be in the range of $0.40 to $0.50 and consolidated revenues to grow between 3.5% and 7.5%. There consensus estimates are calling for $723.89 million in revenue.
On the books, cash and cash equivalents totaled $349.1 million at the end of the quarter, versus $402.4 million in the same period from last year.
Victor Herrero, CEO of Guess, commented:
While I recognize the challenges we are facing in the Americas, I am thrilled that, due to our various revenue enhancement initiatives, our third quarter revenues increased by 3%. We enjoyed strong double digit growth in Europe and in Asia, and we remain focused on improving our profitability in North America. As we reach the end of our transition year, I look forward to fiscal year 2018 with tremendous anticipation and excitement.
In the Americas, where the retail environment remains challenging, we are more than ever focused on improving the profitability of our retail business. In order to do so, we have identified a four point plan that we believe will drive value for our business: (1) continue to negotiate rent reductions whenever possible, (2) close unprofitable stores upon lease kick-out or expiration unless new rent terms make them profitable, (3) continue to implement supply chain initiatives including vendor consolidation, fabric platforming and source country diversification and (4) enhance our digital capabilities to help set ourselves apart from other retailers.
Shares of Guess closed Wednesday down 1.5% at $15.32, with a consensus analyst price target of $17.70 and a 52-week trading range of $13.20 to $22.84. Following the release of the earnings report, initially the stock was relatively flat in the in the after-hours trading session.