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.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)