• Q3 net income dropped 4% to $66.3m
  • Revenue grew 5% to $643m
  • Operating margin flat at 15.1%

US fashion brand Guess has lowered its full-year forecast as it blamed consumer confidence and economic pressures for a 4% drop in third-quarter profit.

The company yesterday (30 November) said that for the quarter ended 20 October, net income fell to US$66.3m.

Over the period, revenue rose 5% to $643m. North American retail revenue increased 5%, European revenue was up 4% in local currency, while Asian revenue was up 18% over the period. Operating margin remained flat at 15.1%.

Guess lowered its full-year expectations, now expecting revenue to reach $2.7-2.71bn, down on previous forecasts of $2.74-2.78bn. Earnings per share are now expected to be in the range of $2.85-2.91, down on the originally forecast $3.06-3.16 per share.

"It is difficult to predict how long the current economic conditions may persist," said CEO Paul Marciano. "As always, we plan to manage carefully and prudently, focusing on those things that we can directly control. Our goal is to improve productivity, expand our long term profitability and deliver outstanding returns to our shareholders, while always protecting our brand."