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.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye