What happened

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.

Someone sitting on concrete steps surrounded by shopping bags.

Image source: Getty Images.

So what

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.

Now what

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.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool recommends Guess?. The Motley Fool has a disclosure policy.