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.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)