Shares of Guess? Inc. sank 23 percent Thursday the apparel maker cut its annual profit and revenue forecasts amid a drop in North American store sales.
Guess fell $7.59 to end at $25.95 in New York. The shares had gained 12 percent so far this year through Wednesday’s close.
The company, which operates 511 stores in North America, said comparable-store sales, a measure of a retailer’s growth that excludes new stores, fell 8.5 percent in U.S. dollars in the quarter ended July 28. The company, which has been working to improve its women’s and accessories lines, said it will refine its strategy in the U.S. and Canada, where necessary.
“We will continue to manage our business prudently, focusing carefully on those things that are within our direct control,” Chief Executive Officer Paul Marciano said in a statement yesterday after markets closed. “While our initiatives may take longer than we had expected and the market place remains uncertain, we will continue to focus on providing a great customer experience and innovative products supported by our new and targeted marketing efforts.”
Profit excluding some items for the year ending Feb. 2 will be $2.15 to $2.30 a share, the company said. In May, Guess had projected $2.50 to $2.65 a share. Analysts anticipated $2.59, the average of 13 estimates compiled by Bloomberg.
Annual revenue will be $2.62 billion to $2.65 billion, down from a prior forecast of $2.7 billion to $2.74 billion. That compared to an average analyst estimate of $2.71 billion.
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