LOS ANGELES (AP) -- Guess Inc.'s shares soared in extended trading Wednesday after the clothing company's second-quarter profit and revenue blew past market expectations and it raised its full-year profit forecast.
The Los Angeles-based company said improved merchandise, strong performance in North America and lower expenses helped boost its results.
Guess reported after the stock market closed that it earned $39.9 million, or 47 cents per share, for the quarter. That's down from $42.9 million, or 49 cents per share, in last year's quarter. After adjusting for restructuring charges and other special items, it earned 52 cents per share in the latest quarter.
Revenue increased to $639 million from $635.4 million as gains in North American and European revenue offset a decline in its Asian retail and wholesale business.
Analysts polled by FactSet were anticipating adjusted earnings of 35 cents per share on revenue of $623.6 million.
Guess sells its products through its namesake stores and other retailers. It operated 507 stores as of the end of the quarter, down from 511 last year.
The company, like many of its peers, has been struggling with soft consumer spending in some markets. It warned that the economic climate in southern Europe remains challenging and it is starting to see a slowdown in China. Still, CEO Paul Marciano said that the company is encouraged by its overall results in the first half of the year.
Guess said that it expects to earn between $1.78 to $1.92 per share for the year on an adjusted basis with revenue between $2.56 billion and $2.59 billion. That is compared with its prior forecast of earnings between $1.70 and $1.90 per share on revenue between $2.57 billion and $2.61 billion.
Analysts polled by FactSet were anticipating earnings of $1.79 per share on revenue of $2.58 billion.
The company anticipates earnings between 34 and 38 cents per share for its third quarter on revenue between $610 million and $620 million. Analysts were expecting earnings of 40 cents per share on revenue of $615.4 million.
Shares jumped $4.79, nearly 18 percent, to $32.10 after hours. Its stock had added 8 cents to close regular trading at $27.31.
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