Guess 3Q profit up slightly, forecasts beat Street

AP News
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Posted: Nov 30, 2009 5:48 PM

Apparel maker Guess Inc. on Monday reported a slight rise in third-quarter profit and forecast fourth quarter earnings above analysts' expectations.

The stock jumped more than 8 percent in after-hours trading.

CEO Paul Marciano said Guess is gaining market share in key markets as it makes international expansion a key focus. Marciano also said the company will "resume retail development in North America" and other countries.

The Los Angeles-based company predicts fourth-quarter profit of 77 cents to 80 cents per share, compared with analysts' average estimate of 69 cents. And for the full year, it expects earnings of $2.45 to $2.48 per share, well above the $2.19 that analysts predict.

In the quarter that ended Oct. 31, the maker of shoes and clothing earned $64.1 million, or 69 cents per share, compared with $64 million, or 67 cents per share, a year earlier. There were fewer shares this year than last, which boosted per-share results.

Revenue fell less than 1 percent to $522.8 million from $527.9 million.

Analysts polled by Thomson Reuters had expected 50 cents per share in profit on sales of $482.6 million.

Guess also declared a quarterly dividend of 12.5 cents per share to be paid Dec. 31 to shareholders of record as of Dec. 11.

Shares rose $3.20 to $40.30 in after-hours trading Monday after closing at $37.05, down 42 cents from a day earlier.