The US clothing group Guess Inc. achieved increases in sales and profits in the third quarter of the 2023/24 financial year. However, because the figures published on Tuesday evening fell short of market expectations and the company lowered its annual forecasts, the share price immediately fell by more than 14 percent.
In the three months before October 28, consolidated sales reached 651.2 million US dollars (598.0 million euros), exceeding the level of the previous year’s quarter by three percent (currency-adjusted +1 percent).
In America, sales in the company’s own retail business fell by seven percent (-8 percent at constant currency) to $153.9 million, while in the wholesale business they rose by four percent (-1 percent at constant currency) to $55.3 million.
The company achieved growth overseas: In Europe, sales increased by six percent (currency-adjusted +5 percent) to 344.5 million US dollars, in Asia by two percent (currency-adjusted +0.2 percent) to 64.5 million US dollars -Dollar. Global licensing revenue increased 19 percent to $33.0 million.
Management is lowering its targets for the current financial year
Operating income was $54.8 million, almost unchanged compared to the third quarter of last year. Due to positive one-off tax effects, the net profit attributable to shareholders was 55.7 million US dollars (51.1 million euros), more than twice as high as in the same period of the previous year, when it was 21.3 million US dollars. Adjusted for special effects, it grew by nine percent to $27.0 million.
CEO Carlos Alberini admits that the group is now “more cautious” about the rest of the financial year in view of the latest sales trends, the adverse general conditions and the reduced buying mood. The company now only expects an increase in sales of between 1.8 and 2.4 percent for 2023/24, after previously forecasting growth of 2.5 to 4.0 percent. The target for diluted earnings per share, adjusted for special items, was reduced to between $2.67 and $2.74 from $2.88 to $3.08.
