Guess Inc. shares were up close to 14% in extended trading Wednesday after the retailer of apparel reported results for the second quarter that easily beat expectations on Wall Street. The company increased its outlook for the full year as well.
Guess profit for the second quarter was down ending at $15.2 million equal to 18 cents per share compared to last year during the same period of $32.3 million equal to 38 cents per share.
Adjusted earnings reached $16.1 million equal to 19 cents per share. Wall Street analysts were expecting earnings of just 10 cents per share during the quarter.
Revenue for the three-month period was up 5% to just over $573.7 million compared to last year during the same period of $544.95 million. Analysts were expecting revenue to come in at $559.04 million.
CEO at Guess Victor Herrero said the company was pleased with reporting that its adjusted results for the second quarter finished higher than its high-end expectations for its earnings per share and operating margin
He added that overall revenues for the company were up 5%, the operating margin grew by 120 basis points and its operating profit expanded by 49% in comparison to the second quarter of 2016.
Herrero added that the company was continuing to see results from its efforts in both Asia and Europe, where revenues were up 17% and 20% respectively, mainly thanks to opening of new stores, growth in its wholesale and positive comparable sales.
A per share dividend of 22.5 cents was declared by the company payable on September 22 to all shareholders of September 6.
For the ongoing third quarter, the apparel retailer is expecting its adjusted earnings to be between 8 cents and 11 cents per share, while revenues are expected to increase by between 4% and 6%.
Analyst estimates Guess earnings of 12 cents per share and revenue increasing by 3%.
For its full year, the company is now expecting growth in revenue of between 6% and 7.5%, with earnings of between 34 cents and 42 cents per share.
In a previous estimate, Guess was expecting growth in revenue of between 3.5% and 5% and in earnings of between 34 cents and 44 cents per share.
Analysts currently have estimated earnings to be 40 cents per share on growth in revenue of 3.3% for the full year.