Guess (GES) 3Q17 Results: EPS Misses Consensus; US Performance Hampers Results

Executive Summary

• Guess reported 3Q17 EPS of $0.11, below the $0.14 consensus estimate and down 27% year over year. The figure was at the low end of management’s previous guidance.
• The North America retail segment reported $215.9 million in revenue, missing consensus of $219.0 million. The North America wholesale division reported revenue of $44.8 million, beating the consensus estimate. Reported comps for the region were down 4.9% versus consensus expectations of a 3.3% decline.
• For 4Q17, the company expects adjusted EPS of $0.42–$0.52 and a 3.5%–7.5% increase in net sales.