Shares Down 10.7% Amid Softer Market Environment

  • Guess shares down 10.7% in premarket trading
  • Company swung to a loss in fiscal Q2
  • Loss of $10.6 million compared to $39 million profit last year
  • EPS lowered from $2.59-$2.89 to $1.92-$2.14
  • Consolidated net revenue growth expectation reduced from 10.7%-12.7% to 9.5%-11.0%

Guess Inc.’s shares fell by 10.7% in premarket trading after the company reported a loss of $10.6 million for its fiscal second quarter, compared to a profit of $39 million in the same period last year. The U.S. clothing retailer now expects earnings per share (EPS) to be between $1.92 and $2.14, down from previous estimates of $2.59 to $2.89. Consolidated net revenue growth is expected to increase by 9.5% to 11.0%, a decrease from the earlier forecast of 10.7% to 12.7%. CEO Carlos Alberini attributed these changes to a ‘softer consumer environment’.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Guess’s financial performance and outlook, citing specific numbers and quotes from the CEO. It also includes relevant context such as the comparison to previous expectations. However, it could be improved by providing more details on the factors contributing to the softer market environment and including a broader perspective on the company’s overall performance in the industry.
Noise Level: 6
Noise Justification: The article provides relevant information about Guess’s financial performance and outlook but lacks in-depth analysis or context on the reasons behind the loss and market conditions. It also does not offer any actionable insights for readers.
Public Companies: Guess (GES)
Key People: Carlos Alberini (Chief Executive)

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Financial Relevance: Yes
Financial Markets Impacted: Guess Inc.’s stock price and investor sentiment
Financial Rating Justification: The article discusses the company’s financial performance, including a shift from profit to loss, lowering of EPS expectations, and adjustments in revenue projections, which directly affects its stock price and investor sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
Move Size: The market move size mentioned in this article is a decrease of 10.7% in premarket trading, with shares down to $18.06.
Sector: Retail
Direction: Down
Magnitude: Large
Affected Instruments: Stocks

Image source: Frank Schulenburg / Own work

Reported publicly: www.marketwatch.com