Guess Inc. (NYSE: GES) announced the fourth quarter financial result on Wednesday after market close. Shares of Guess slumped 15.71% to $17.97 on Thursday morning. Last holiday season was a hard time for many retailers, especially jeans specialist Guess.
According to the fourth quarter financial results, net revenue decreased 5.5% to $685.259 million compared with the same quarter last year. Net earnings down 11.3% to $49.288 million from $55.589 million last year. Diluted earnings per share decreased approximately 10% to $0.57 compared with last year.
Guess logged a cliffy-than-expected profit decline during the holiday season and warned it would post a first-quarter loss, the latest signs that its turnaround effort has stalled. The company has long struggled with dwindling sales—reporting 21 straight quarters of same-store sales declines. And as the retailer has an international presence, the strong U.S. dollar has added to its woes by making its items more expensive in foreign currencies.
Victor Herrero, Chief Executive Officer, announced their outlook for the next quarter, “Turning to the outlook for the next three years, based on the Strategic Initiatives that I have mentioned in the last two earnings calls, we are planning for our annual revenues to reach $3.0 billion in three years at prevailing currency rates. This $800 million increase is expected to be driven by growth in E-commerce, retail expansion and positive comp store sales. In terms of regional growth, we expect $300 million of this increase to be driven by the Americas, $300 million by Europe and $200 million by Asia.”
Guess expects to swing to a loss in the next quarter, estimating the loss range between $0.17 per share to $0.20 per share. However, analyst had expected a profit of $0.03 per share.