Clothing brand and retailer faces challenges in uncertain shopping environment
- Guess shares drop 14% after cutting revenue and profit outlook
- Full-year revenue expected to grow 1.8% to 2.4%, down from previous guidance
- Earnings per share forecasted to be $2.67 to $2.74, lower than previous forecast
- Geopolitical issues and lower consumer confidence impacting shopping environment
Shares of Guess dropped 14% in after-hours trading after the company announced a cut in its revenue and profit outlook for the year. The clothing brand and retailer now expects full-year revenue to grow between 1.8% and 2.4%, down from its previous guidance of 2.5% to 4%. Earnings per share are forecasted to be $2.67 to $2.74, lower than the previous forecast of $2.88 to $3.08 per share. The company attributes these challenges to geopolitical issues and lower consumer confidence impacting the shopping environment.
Factuality Level: 7
Factuality Justification: The article provides information about Guess cutting its revenue and profit outlooks for the year, as well as the reasons given by the Chief Executive for the decline. It also includes information about the company’s third-quarter performance. However, the article lacks specific details about the geopolitical issues and lower consumer confidence that are mentioned as factors affecting the shopping environment. Overall, the article provides some relevant information but could benefit from more context and details.
Noise Level: 3
Noise Justification: The article provides relevant information about Guess cutting its revenue and profit outlooks for the year. It includes quotes from the Chief Executive and mentions the factors impacting the company’s performance. However, the article is very short and lacks in-depth analysis or additional context. It also does not provide any evidence or data to support its claims.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Guess
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the drop in shares of Guess and the company’s revised revenue and profit outlooks.
Public Companies: Guess (GES)
Key People: Carlos Alberini (Chief Executive)
Reported publicly:
www.marketwatch.com 
