Clothing designer and marketer Guess Inc on Wednesday cut its third-quarter profit outlook from 8-10 cents a share to 6-8 cents a share as September sales fell below expectations.

Total September retail sales were $26.5 million, an increase of 0.1 per cent from sales of $26.4 million for the four weeks ended 29 September 2001. Comparable store sales for the September period decreased 4.3 per cent.

For the third quarter ended 28 September 2002, total retail sales decreased 0.6 per cent to $94.9 million compared to $95.5 million for the third quarter of 2001. Comparable store sales decreased 5.4 per cent during the third quarter.

The clothing retailer said it is "carefully" monitoring inventories and expenses as it heads into the holiday season because of current trends.

In a separate announcement, the company said it has entered into a new, four-year $85 million asset-based, secured credit facility.

Carlos Alberini, president and chief operating officer, said the new agreement "provides us with excellent financial flexibility and ample capacity to support our working capital needs."