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Thursday, March 21, 2019

Guess shares tumble on earnings shortfall as Levi Strauss IPO looms

Shares of clothing company Guess tumbled nearly 14 percent in the premarket Thursday after reporting earnings that missed analyst expectations.

Guess posted adjusted earnings per share for the fourth quarter of 70 cents. Analysts polled by Refinitiv expected a profit of 75 cents a share.

The company also said its same-store sales in the Americas fell 0.7 percent in the fourth quarter. Analysts polled by FactSet had forecast an increase of 1.5 percent. Gross margins also contracted from the year-earlier period.

Thursday's before-the-bell move would wipe out Guess' year-to-date gains. The stock was up 6.3 percent through Wednesday's close.

The move also comes ahead of blue jeans maker Levi Strauss' initial public offering. Levi Strauss is set to go public on Thursday after pricing its IPO at $17 per share.

This is one of the most anticipated IPOs of the year. Three sources told CNBC the IPO was more than 10 times oversubscribed, indicating high demand.

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