(RTTNews) - Shares of Guess?, Inc. (GES) dropped 11.2% in the extended hours on Tuesday, and are currently down around 13 percent in the pre-market activity on the NYSE, after the clothing company lowered its fiscal 2025 outlook after reporting a loss in its third quarter.
For the fourth quarter, the company expects earnings per share to range between $1.10 to $1.22, adjusted earnings per share to be $1.37 to $1.52, and net revenue to increase between 2.2 and 5.4 percent.
Four analysts surveyed by Thomson Reuters are expecting GES to report a profit of $1.96 per share for the January quarter. Analysts estimates typically exclude special items.
For the fiscal year 2025, Guess? now expects earnings per share to range between $0.70 to $0.82 and adjusted earnings per share to be $1.85 to $2.00. Analysts expect a profit of $2.50 per share for the 2025 year.
The company previously expected earnings per share of $1.92 to $2.14 and adjusted earnings per share of $2.42 to $2.70.
Revenues are now expected to increase between 7.1 and 8.1 percent, compared to previously expected increase between 9.5% and 11.0%.
Further, the company has announced a quarterly cash dividend of $0.30 per share. It will be paid on December 27, to shareholders who own the stock by the end of the day on December 11.
For the third quarter, net loss attributable to the company was $23.40 million, or $0.47 per share, compared with a profit of $55.70 million, or $0.82 per share last year. The adjusted net income dropped to $17.67 million, or $0.34 per share from $27.01 million, or 0.49 per share last year.
Analysts were expecting GES to report a profit of $0.37 per share for the third quarter.
The total revenue increased to $738.52 million from $651.17 million last year.
According to Chief Executive Officer, Carlos Alberini, the increase was mainly due to the purchase of Rag & Bone and some steady growth.
Tuesday, GES had closed 3.94% lesser at $17.33 on the New York Stock Exchange. In the extended trading, GES further lost 11.19% to $15.39.
In the pre-market activity, the shares were losing 12.69% to $15.13.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
