Guess? (NYSE:GES) stock is falling on Wednesday after the lifestyle and apparel company released its earnings report for the third quarter of fiscal 2024.
The bad news for GES stock starts with the company’s adjusted earnings per share of 49 cents in the quarter. That’s below the 61 cents per share Wall Street was expecting for the period. However, it is up from the 44 cents per share reported in the same quarter of fiscal 2023.
Adding to GES stock troubles is the company’s revenue of $651.17 million. That’s another miss compared to analysts’ revenue estimate of $655.58 million for the quarter. That’s despite it representing a 3% increase year-over-year from $633.4 million.
Carlos Alberini, CEO of Guess?, said the following in the earnings report.
“We are pleased with our third quarter financial results, which were in line with our guidance for revenue growth and at the high end of our expectations for operating profit performance. During the period, we managed the business well and delivered strong gross margin and effective cost performance, which resulted in GAAP and adjusted operating margins of 8.4% and 8.9%, respectively, ahead of our expectations for the quarter.”
Guidance Cut Hits GES Stock
Guess? updated its outlook for fiscal Q4 2024 and the full year in this earnings report. It now expects Q4 adjusted EPS of $1.53 to $1.60. That’s below Wall Street’s guidance of $1.68 per share for the quarter.
As for the full year of fiscal 2024, Guess? is looking for adjusted EPS to range from $2.67 to $2.74. That’s also looking grim next to analysts’ estimate of $2.96 per share.
GES stock is down 10.9% as of Wednesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
