Comparable store sales for the September period decreased 4.3%. Comparable store sales for the Company's full priced retail stores decreased 1.9%, and comparable store sales at the factory outlet stores decreased 10.0%.
For the third quarter ended September 28, 2002, total retail sales decreased 0.6% to $94.9 million compared to $95.5 million for the third quarter of 2001. Comparable store sales decreased 5.4% during the third quarter of 2002.
Carlos Alberini, President and Chief Operating Officer, commented, "Consistent with much of our industry, Guess' retail sales for September were below expectations. Based on these results, we are now anticipating that diluted earnings per share will be in the range of $0.06 to $0.08 for the third quarter, including a favorable settlement in the quarter related to the resolution of litigation. Excluding the litigation settlement, we expect diluted earnings per share to be in the range of $0.01 to $0.03. In light of current trends, we are monitoring our inventories and expenses very carefully as we head into the holiday season."
Guess? plans to report its third quarter 2002 financial results during the week of October 28, 2002, at which time it will provide updated earnings guidance for the fourth quarter of 2002.
In a separate release today, the Company announced that it has entered into a new, four-year $85 million asset-based, secured credit facility.
Guess?, Inc. designs, markets, distributes and licenses one of the world's leading lifestyle collections of contemporary apparel, accessories and related consumer products.
Except for historical information contained herein, certain matters discussed in this press release including but not limited to the Company's expected results of operations and plans to reduce costs and estimated charges, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are only expectations, and involve known and unknown risks and uncertainties, which may cause actual results in future periods and other future events to differ materially from what is currently anticipated. Factors which may cause actual results in future periods to differ from current expectations include, among other things, the continued availability of sufficient working capital, the successful integration of new stores into existing operations, the continued desirability and customer acceptance of existing and future product lines, possible cancellations of wholesale orders, the success of competitive products, the success of the Company's programs to strengthen its inventory cost accounting controls and procedures, and the availability of adequate sources of capital. In addition to these factors, the economic and other factors identified in the Company's most recent annual report on Form 10-K for the fiscal year ended December 31, 2001 including but not limited to the risk factors discussed therein, could affect the forward-looking statements contained herein and in the Company's other public documents.
CONTACT: Guess?, Inc.
Carlos Alberini, 213/765-3582
or
Frederick G. Silny, 213/765-3289
or
Kekst and Company
Wendi Kopsick / Molly Morse
212/521-4867/4826
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