Guess Inc warns of bigger fall in European sales
(Reuters) - Apparel retailer Guess Inc (GES.N) cut its full-year revenue forecast as it expects a bigger fall in European sales in the holiday-shopping quarter.
European sales are expected to decline in the mid- to high-single digits in the current quarter if euro remains at current rates, Chief Operating Officer Michael Relich said on a conference call.
Sales in Europe, the company's second-largest market, fell about 1 percent in the quarter ended November 2.
The company warned that the economic climate in southern Europe will likely remain challenging.
Europe's contribution to Guess sales has fallen to about 35 percent in 2013 from 38 percent the previous year.
With a shorter U.S. shopping season than a year earlier, many retailers like Abercrombie & Fitch Co (ANF.N) and Aeropostale Inc (ARO.N) have been wooing customers with heavy promotions.
Guess cut its full-year revenue forecast to $2.55 billion-$2.57 billion from $2.56 billion-$2.59 billion.
Analysts on average were expecting $2.58 billion, according to Thomson Reuters I/B/E/S.
Net earnings attributable to Guess fell to $34.0 million, or 40 cents per share, in the third quarter, from $36.6 million, or 43 cents per share, a year earlier.
On an adjusted basis, Guess earned 42 cents per share.
Revenue fell 2.4 percent to $613.5 million.
Analysts on average had expected the company to earn 37 cents per share on revenue of $614.4 million.
Shares of the company fell as much as 2 percent after closing at $33.34 on the New York Stock Exchange on Wednesday.
(Reporting by Aditi Shrivastava and Devika Krishna Kumar in Bangalore; Editing by Don Sebastian)