Guess tops revenue estimate, shares rise

Fashion retailer Guess Inc reported on Wednesday quarterly revenue for the holidays season that beat analysts' estimates on strong demand in Europe and Asia, sending its shares up nearly 12 percent in extended trade.

The company said net revenue rose to $792.2 million (£560 million) from $674 million, a year earlier.

Analysts had expected revenue of $755.6 million, according to Thomson Reuters I/B/E/S.

The Los Angeles-based company said its Americas retail revenues decreased 6.1%, with retail comp sales including e-commerce falling 4%. Wholesale revenues increased 3.8%.

In Europe, revenues soared 39.7% and Asia revenues lifted 40.2%. Licensing revenues increased 11.4%, said Guess.

However, net income attributable to Guess fell to $1.04 million, or 1 cent per share, in the third quarter ended Feb. 3, from $6.6 million, or 8 cents per share, a year earlier.

The company's net income was impacted by a one-time charge of $47.9 million related to the recently enacted U.S. tax law.

"I still see a lot of opportunities left in Europe and Asia, where we will continue to allocate capital for superior returns and where we plan to continue growing sales in double digits while also expanding margins," Guess Chief Executive Victor Herrero said in a statement.

"We will keep working on improving the profitability of the Americas by executing on our cost reduction and margin improvement initiatives."

Guess co-founder Paul Marciano stepped down from his duties last month after model Kate Upton made allegations of sexual harassment, which Marciano has denied.

The company didn't provide an update on the ongoing investigation on Wednesday.

Additional reporting by Benjamin Fitzgerald