(RTTNews) - Apparel retailer Guess Inc. (GES) Wednesday reported a second-quarter profit that trumped Wall Street expectations, driven largely by 6 percent increase in revenues. The company also lifted its full year outlook, sending shares up 10 percent in extended trading session.
Guess reported second-quarter earnings of $26.2 million or $0.35 per share, up from $25.7 million or $0.31 per share last year.
Adjusted earnings for the quarter dropped to $27.4 million or $0.38 per share from $29.5 million or $0.36 per share. Analysts polled by Thomson Reuters estimated earnings of $0.29 per share for the quarter.
Revenues for the quarter increased 5.8% to $683.2 million from $645.9 million last year. Analysts had a consensus revenue estimate of $671.42 million for the quarter.
Americas retail revenues increased 0.9 percent, while wholesale revenue increased 22.3 percent. For the quarter, revenues at European business segment gained 9.1 percent and Asia revenues increased 0.6 percent.
CEO Carlos Alberini said, "I am very pleased with our second quarter financial performance, which delivered strong operating profit growth. This performance exceeded our expectations and was driven by a solid top line increase, strong margin performance and effective expense management."
Looking forward to the third quarter, Guess expects adjusted earnings of $0.15 to $0.18 per share and revenues to increase between 2.0 to 3.0 percent. Analysts currently estimate earnings of $0.26 per share.
For the full year, Guess now expects revenue growth of 3.0 to 3.5 percent and earnings of $1.28 to $1.36 per share. Analysts currently estimate earnings of $1.26 per share on revenue growth of 4.20 percent for the year.
Earlier, the company expected adjusted earnings of $1.19 to $1.30 per share for the full year.
GES closed Wednesday's trading at $15.04, up $1.04 or 7.43%, on the NYSE. The stock further gained $1.65 or 10.97% in the after-hours trade.
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