Guess 4Q Profit Rises 19% But Outlook, US Operations Weak <br /> <br /> Last Update: 3/16/2011 4:31:11 PM <br /> <br /> <br /> <br /> DOW JONES NEWSWIRES <br /> <br /> <br /> Guess Inc.'s (GES) fiscal fourth-quarter earnings rose 19% on continued strength <br /> overseas, but the apparel maker's comparable sales at its larger U.S. retail <br /> business declined and it gave a weak outlook for earnings this year and for the <br /> current quarter's results. <br /> <br /> Shares were down 6.4% at $41.17 after hours. Through the close, the stock has <br /> fallen 5.9% in the last year. <br /> <br /> In the current quarter, Guess forecast earnings of 41 cents to 44 cents a share <br /> on revenue of $555 million to $570 million. Analysts surveyed by Thomson Reuters <br /> predicted 61 cents a share on $596 million in revenue. <br /> <br /> For the year, Guess projected $3.30 to $3.50 a share in earnings and $2.72 <br /> billion to $2.82 billion in revenue, while analysts expected $3.50 a share and <br /> $2.75 billion, respectively. <br /> <br /> The company's expansion in Asia and Europe has fueled revenue growth in recent <br /> quarters, after it was also a key source of support during the recession. The <br /> company's strategy continues to aim at developing new markets, and Chief <br /> Executive Paul Marciano has said many regions have more potential for its Guess <br /> business. <br /> <br /> Also Wednesday, Guess said its board has authorized stock repurchases worth up to <br /> $250 million of its common stock. The new authorization includes $85 million <br /> remaining under the company's $200 million repurchase program. <br /> <br /> For the quarter ended Jan. 29, the company posted a profit of $103.3 million, or <br /> $1.11 a share, up from $86.6 million, or 93 cents a share, a year earlier. The <br /> latest period included a benefit of 5 cents a share from an assessment of its <br /> North American loyalty program breakage, while the prior-year period included <br /> retail store write-downs. Revenue increased 18% to $756.9 million. <br /> <br /> In November, the company forecast earnings of $1.02 to $1.06 a share on revenue <br /> of $710 million to $730 million, upbeat compared with analysts' views at the <br /> time. <br /> <br /> Gross margin fell to 44.4% from 46%. <br /> <br /> Same-store sales in North America fell 1.1% in U.S. dollars, as retail revenue <br /> rose 9.4% on store openings. In Europe and Asia, revenue jumped 33% and 23%, <br /> respectively. <br /> <br /> Revenue at the North American wholesale segment decreased 5.2%. <br /> <br /> -By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com <br /> <br /> (END) Dow Jones Newswires <br /> <br /> March 16, 2011 16:31 ET (20:31 GMT)