Guess sees full-year above view
NEW YORK (Reuters) - Apparel company Guess Inc (GES.N) reported a quarterly profit on Tuesday that far exceeded Wall Street expectations helped by robust expansion overseas, sending its shares up 8 percent.
The U.S. retailer and wholesaler also gave a fiscal 2011 profit outlook that was above analysts' average estimate.
"We expanded our retail presence, opening 84 new stores around the world," Chief Executive Paul Marciano said in a statement. "Our international expansion continues to drive our growth, with Europe and Asia combining to contribute two-thirds of this quarter's revenue increase."
The fashion brand known for its jeans said on Tuesday that net income was $69.1 million, or 75 cents per share, in its fiscal third quarter ended October 30, compared with $64.1 million, or 69 cents per share, a year earlier.
Wall Street had expected earnings of 59 cents a share, according to Thomson Reuters I/B/E/S.
Guess has historically issued conservative profit outlooks that it tends to beat.
After releasing its second-quarter results in August, Guess tempered sales and profit expectations due to "costs to develop the international platform and too much inventory for U.S. stores that was weighing on gross margin," wrote Wall Street Strategies analyst Brian Sozzi in a research note.
Third-quarter revenue rose 17 percent to $613.9 million.
Guess posted double-digit sales growth at its North American and European wholesale units, with a 6 percent gain at North American retail stores.
The company also gave a fiscal 2011 profit outlook that exceeded Wall Street expectations, saying it expects a range per share of $3.02 to $3.06 versus the Wall Street view of $2.91.
The Los Angeles-based company forecast revenue of $2.44 billion to $2.46 billion for the fiscal year that ends Jan 29, while analysts expect $2.39 billion.
The company's shares were up 8 percent at $48.98 in after-hours trading.
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