Share price in Guess? down in after-hours trading as clothing company reports a fall in both revenues and earnings for year ended January 2016

 
Hayley Kirton
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In three years' time, the chief executive would like the company to be pulling in $3bn (Source: Getty)

Share price in Guess? dropped sharply in after-hours trading after the fashion company reported a decline in revenues for its results for the full year ended January 2016.

The clothing company announced global revenues for its full-year of $2.2bn (£1.5bn), down 8.8 per cent from $2.4bn the year before, while net earnings dropped to $81.9m, down 13.4 per cent on $94.6m.

For its fourth quarter, the company reported net earnings of $47.8m, down 11.4 per cent compared with $53.9m the year before, while global revenue fell to $658.3m, down 5.5 per cent on $696.7m.

"I am pleased to report that fourth quarter earnings per share were within the range of our guidance," remarked Victor Herrero, chief executive of Guess?. "In Europe, our retail business performed extremely well and delivered positive comparative store sales in the high-single digits. In the Americas, our retail business in the US and Canada also achieved positive comparatives in constant currency.

"There is still more work to be done, but I am convinced that the initiatives we have started to implement in the last few months have contributed to these encouraging results."

Herrero added that he planned to increase the company's revenues to $3bn over the next three years, with much of the boost being driven by ecommerce.

The clothing company also announced a quarterly cash dividend of $0.225.

Shares in the company fell 12 per cent to $18.75 in after-hours trading.

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