Guess? (GES) Misses Q3 Views on Light N.A. Comps; Special Dividend Brings Investors Back

November 28, 2012 4:43 PM EST
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Guess?, Inc. (NYSE: GES) shares are ticking higher amid weak third-quarter 2013 results and lowered outlook, as investors buy in ahead of a lucrative special dividend payout.

Revs for the hip clothier fell just over 2 percent to $628.8 million, from $642.8 million in the same period last year. North American comps fell 6 percent. Net income slipped 45 percent to $36.65 million, or 43 cents per share.

Overall, the Street expected revs of $621.7 million and EPS of 44 cents.

Operating margin slipped 590 basis points to 9.2 percent.

"Third quarter earnings were consistent with our guidance but fell short of our operational goals, as economic pressures impacted consumer confidence in most of our markets," commented CEO Paul Marciano. "Our European business was stronger at the beginning of the quarter, though business softened toward the end of the period. We posted solid double digit growth in Asia. In North America, our key strategies remain relevant as we focus on driving traffic to the stores through enhanced customer engagement initiatives and elevating the brand with quality."

Looking ahead ,Guess? sees fourth-quarter 2013 EPS of 85 cents to 95 cents and revs of $780 million to $800 million, while the Street is at EPS of 95 cents and revs of $789.2 million.

For fiscal 2013, Guess? lowered its EPS outlook from $2.15 to $2.30 down to a range of $2.05 to $2.15. Revs move from a range of $2.62 billion to $2.65 billion to a range of $2.62 billion to $2.64 billion. The Street is at EPS of $2.16 and revs of $2.63 billion.

Guess? declared a regular dividend of 20 cents per share and special dividend of $1.20 per share. At today's closing price, the special dividend yields about 4.8 percent.

Shares of Guess? are up 3.4 percent in late trading Wednesday.

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