Guess gives bullish outlook, shares up

By Alexandria Sage

SAN FRANCISCO (Reuters) - Guess Inc (GES.N) on Thursday gave a bullish second-quarter outlook that sent shares of the international fashion brand up 5 percent, despite first-quarter net income that fell by nearly a third.

Challenging economic conditions that have crimped consumer spending around the world would likely persist "for some time," said Chief Executive Paul Marciano, who attributed results to more aggressive inventory management and reduced spending, including fewer store openings.

Results, which beat Guess' own projections, were particularly strong, Marciano said, given the environment in which "consumers still continue to stay away from the malls" and currency fluctuations hurt international sales.

"We do not believe the economic crisis is over, but we are beginning to experience a more stable and predictable environment," added Marciano.

The company has not given a fiscal 2010 outlook since last quarter due to limited visibility.

The retailer and wholesaler known for its denim said first-quarter net profit fell 32 percent to $32.5 million, or 35 cents per share, from $47.8 million, or 50 cents per share, a year earlier.

Analysts, on average, had been expecting earnings of 29 cents per share, according to Reuters Estimates.

Revenues fell 10 percent to $441.2 million, the company said, but on a constant currency basis revenues were flat.