Shares of apparel retailer Guess? (NYSE:GES) fell as much as 14.9% on Wednesday, following the company's earnings release for its third quarter of fiscal year 2018. The stock is down 13.4% at the time of this writing.
The likely reason for pessimism toward the stock is the company's weaker-than-expected revenue for the quarter, as well as management's decision to lower the high end of its guidance range for revenue growth.
Guess? reported revenue and non-GAAP EPS of $554.1 million and $0.12, respectively. These results compare to $536.3 million and $0.11, respectively, in the year-ago quarter.
Highlighting its deceleration in revenue growth, third-quarter revenue of $554.1 million was up 3% year over year compared to year-over-year revenue growth of 4.9% in Q2.
Guess? now expects total fiscal year 2018 revenue to increase between 6% and 6.5%, or between 4% and 4.5% in constant currency. Previously, management was expecting full-year revenue to increase between 6% and 7.5%, or between 4% and 5.5% in constant currency.