Guess (NYSE:GES) reported FQ3 revenue drops across its Americas retail (-2% Y/Y), Americas wholesale (-10%) and Europe (-2%) segments, while the Asia (+10%) and Licensing (+4%) showed positive growth. Total revenue was down 1.6% to $633M, but came in ahead of the consensus mark of $604M.
Gross profit fell to 42.5% of sales from 45.7% a year ago. Adjusted operating margin decreased to 9.1% during the quarter from 10.9% a year ago, driven primarily by the unfavorable impact of currency, higher costs and markdowns, partially offset by leveraging of expenses. Adjusted EPS was $0.44 vs. $0.62 a year ago and the consensus mark of $0.55.
Guess (GES) reported an inventory position of $574.6M at the end of the quarter vs. $462.3M at the end of Q1 and $482.5M a year ago.
Looking ahead, Guess (GES) said it is well positioned for the holiday period. "We have a solid business plan and inventory levels are well aligned with our business trends," noted CEO Carlos Alberini. "We believe that the combination of our diversified business model, our global brands and our strong capital structure provides us with a significant competitive advantage in the current marketplace and remain confident in our long-term growth opportunities," he added.
Shares of Guess (GES) fell 8.20% to more than erase a 1.49% gain during the regular session.