Soapy Bubbles Saturday, 03/19/11 08:16:03 PM Re: None Post # of 22 Guess 4Q Profit Rises 19% But Outlook, US Operations Weak Last Update: 3/16/2011 4:31:11 PM DOW JONES NEWSWIRES Guess Inc.'s (GES) fiscal fourth-quarter earnings rose 19% on continued strength overseas, but the apparel maker's comparable sales at its larger U.S. retail business declined and it gave a weak outlook for earnings this year and for the current quarter's results. Shares were down 6.4% at $41.17 after hours. Through the close, the stock has fallen 5.9% in the last year. In the current quarter, Guess forecast earnings of 41 cents to 44 cents a share on revenue of $555 million to $570 million. Analysts surveyed by Thomson Reuters predicted 61 cents a share on $596 million in revenue. For the year, Guess projected $3.30 to $3.50 a share in earnings and $2.72 billion to $2.82 billion in revenue, while analysts expected $3.50 a share and $2.75 billion, respectively. The company's expansion in Asia and Europe has fueled revenue growth in recent quarters, after it was also a key source of support during the recession. The company's strategy continues to aim at developing new markets, and Chief Executive Paul Marciano has said many regions have more potential for its Guess business. Also Wednesday, Guess said its board has authorized stock repurchases worth up to $250 million of its common stock. The new authorization includes $85 million remaining under the company's $200 million repurchase program. For the quarter ended Jan. 29, the company posted a profit of $103.3 million, or $1.11 a share, up from $86.6 million, or 93 cents a share, a year earlier. The latest period included a benefit of 5 cents a share from an assessment of its North American loyalty program breakage, while the prior-year period included retail store write-downs. Revenue increased 18% to $756.9 million. In November, the company forecast earnings of $1.02 to $1.06 a share on revenue of $710 million to $730 million, upbeat compared with analysts' views at the time. Gross margin fell to 44.4% from 46%. Same-store sales in North America fell 1.1% in U.S. dollars, as retail revenue rose 9.4% on store openings. In Europe and Asia, revenue jumped 33% and 23%, respectively. Revenue at the North American wholesale segment decreased 5.2%. -By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com (END) Dow Jones Newswires March 16, 2011 16:31 ET (20:31 GMT)