Guess Inc. saw its shares pick up in after-hours trading Wednesday despite lower third-quarter earnings as it declared a special dividend and issued a fairly upbeat fourth-quarter forecast.
The Los Angeles-based jeanswear and sportswear firm also said it planned to enter the Brazilian market through a joint venture with an undisclosed partner and reenter the Japanese market on a direct basis. Paul Marciano, chief executive officer, told analysts on a late afternoon conference call that current plans for Brazil are for between 10 and 20 freestanding stores in the next two to three years with the first store expected to open in São Paulo next June.
In the quarter ended Oct. 27, net income fell 44 percent to $37.5 million, or 43 cents a diluted share, from $66.8 million, or 71 cents, in the year-ago period. The company just missed the analyst consensus estimate for earnings per share of 44 cents.
Revenues were down 2.2 percent, to $628.8 million from $642.8 million. A 15.5 percent sales gain in Asia, to $74.8 million, and a 1 percent increase in its North American wholesale operations, to $57.9 million, were more than offset by declines in Europe (down 8.4 percent to $202.6 million), licensing (down 7.6 percent to $31.5 million) and North American retail (down 1.4 percent to $262.1 million). Operating income was down for all five business units, led by a 57.3 decline in Europe, to $14.6 million. Same-store sales in North America, where the company operates 513 units, were down 6 percent. Gross margin descended to 38.4 percent of sales from 42.9 percent a year ago.
The company projected fourth-quarter EPS of between 85 and 95 cents, against earlier analysts’ estimates of 95 cents, and revenues of $780 million and $800 million, versus average expectations of $789.2 million.
In addition to a regular cash dividend of 20 cents a share, the firm declared a special cash dividend of $1.20 a share at the same time it said it had engaged in no stock buybacks during the third quarter and planned none in the fiscal year’s final three months. The dividends are payable Dec. 28 to shareholders of record Dec. 12.
For the nine months, net income dropped 37.5 percent, to $107.6 million or $1.21 a diluted share, as revenues fell 3.6 percent, to $1.84 billion.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion