Retail

Guess shares soar after earnings beat

Key Points
  • Guess? Inc. reported earnings, revenue and guidance that topped expectations.
  • CEO Victor Herrero said the company has benefited from its focus on Europe and Asia.
  • The company expects continued revenue growth, even though it will still shrink its footprint in America.
Guess beats on top and bottom line
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Guess beats on top and bottom line

Shares of Guess? Inc. soared after the retailer reported better-than-expected earnings.

Here's how the company did in the second quarter compared to Wall Street expectations:

  • Adjusted EPS: 19 cents, vs. 10 cents expected, according to Thomson Reuters
  • Revenue: $574 million, vs. $559 million, according to Thomson Reuters

The stock gained nearly 11 percent during after-hours trade.

CEO Victor Herrero said the company saw strong revenue growth in both Europe and Asia, where the company has been opening new stores. He also said that the company expects continued revenue growth, even as it closes stores in North America, where "the business environment remains soft."

Guess also gave strong guidance for third-quarter revenue and fiscal 2018 earnings per share.

Here's the company's outlook, compared to analyst expectations, according to Thomson Reuters:

  • Q3 adjusted EPS: 8 cents to 11 cents, vs. 12 cents expected
  • Q3 revenue growth: 4 to 6 percent, vs. 3 percent expected
  • FY adjusted EPS: 52 cents to 60 cents, vs. 40 cents expected
  • FY revenue growth: 6 to 7.5 percent, vs. 4.7 percent expected

As of their Wednesday close, Guess shares had already been outperforming the company's peers. The stock has gained 3 percent so far this year, better than the 12 percent decline in the SPDR S&P Retail ETF.