Guess (NYSE:GES) lost ground Wednesday, after reporting weaker-than-expected quarterly earnings and a reduced outlook. The apparel company pointed to a challenging retail environment and the impact of a stronger U.S. dollar, although it said it is well-positioned for the holiday season.
For the third quarter of fiscal 2023, the Company recorded GAAP net earnings of $21.8 million, a 26.9% decrease from $29.9 million for the same prior-year quarter. GAAP diluted net earnings per share (“EPS”) decreased 24.4% to $0.34 for the third quarter of fiscal 2023, compared to $0.45 for the same prior-year quarter. The Company estimates a net positive impact from its adoption of the accounting guidance related to the Company’s convertible notes and share buybacks of $0.07 and a negative impact from currency of $0.22 on GAAP diluted EPS in the third quarter of fiscal 2023 when compared to the same prior-year quarter.
Moreover, the Company’s adjusted net earnings were $24.7 million, a 40.4% decrease from $41.6 million for the same prior-year quarter. Adjusted diluted EPS decreased 29.0% to $0.44, compared to $0.62 for the same prior-year quarter. The Company estimates a net positive impact from its share buybacks of $0.07 and a negative impact from currency of $0.28 on adjusted diluted EPS in the third quarter of fiscal 2023 when compared to the same prior-year quarter.
GES shares fell 84 cents, or 4.3%, to $18.91.
