A LOWER GUESS: Guess Inc. Wednesday warned that its third-quarter earnings would likely come in below analysts’ forecasts and last year’s levels. The Los Angeles-based firm said that it expects diluted earnings per share for the quarter...
A LOWER GUESS: Guess Inc. Wednesday warned that its third-quarter earnings would likely come in below analysts’ forecasts and last year’s levels. The Los Angeles-based firm said that it expects diluted earnings per share for the quarter ended Sept. 28 to fall in the range of 6 cents to 8 cents, including a 5-cents-per-share gain related to resolution of a lawsuit. Excluding that gain, the company said, earnings would be around 1 to 2 cents a share, which is below the 7-cents-per-share Thomson Financial/First Call consensus. Analysts typically factor one-time items like the 5 cent gain out of their forecasts. The company also noted that sales for the quarter were off 0.6 percent, to $94.9 million, with comparable-store sales down 5.4 percent. Guess also noted that it obtained a new $85 million asset-backed credit line from Wachovia Securities.
ACCOUNTING FOR SEARS: In consultation with the Securities and Exchange Commission, Sears, Roebuck & Co. modified a previous change in accounting principle, making it instead a change in estimate. The switch to a change in estimate from accounting principle will increase Sears’ first-quarter profits by $191 million, or 59 cents per share, and reduce second-quarter net income by the same amount. The retailer, when releasing second-quarter results in July, had retroactively applied an aftertax charge of $191 million related to uncollectible accounts in the credit business to the first quarter.
Issa Rae stopped by WWD's NYC headquarters to talk about season two of "Insecure," which premieres this Sunday on HBO. Click link in bio for all the details. #wwdeye (📷: @jgreenery; Styled by @mayteallende)
A Stella McCartney sketch of a custom dress made from protein-based silk in partnership with biotech lab Bolt Threads. The dress will be displayed at The Museum of Modern Art's upcoming design exhibition, "Items: Is Fashion Modern?"