Seller of premium denim apparel Guess?, Inc.(NYSE:GES) on Wednesday reported a 29 percent fall in net income for the fiscal second quarter to July at $42.9 million. The shares in the company fell nearly 23 percent to $25.94.
The earnings at 49 cents a share were lower than the 51 cents expected by analysts.
Revenue of $635.4 million beat the $629.9 million expected by analysts, but was down 6 percent compared to a year ago.
The biggest drop in revenues came from Europe falling 14 percent from a year earlier while revenues from North America fell 3 percent. Its profit was also affected by provisions made for bad debts.
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It now expects revenue of $2.62 billion to $2.65 billion for 2012, down from its May estimate of $2.7 billion to $2.74 billion.
It expects per-share earnings of $2.15 to $2.30, down from the previous estimate of $2.50 to $2.65. It also lowered its expectations for the operating margin.
Analysts expect a full-year profit of $2.64 per share and sales of $2.7 billion, on average.
Meanwhile, Personal computers maker Dell Inc.(NASDAQ:DELL) on Tuesday lowered its full-year outlook for the year sending its shares down more than four percent.
The company said that the second half of the year looked to be challenging with tech spends slowing down and stiff competition coming from others such as Acer and Lenovo.
Dell said that revenues for the fiscal third quarter would be 2 to 5 percent lower compared to the second quarter, to range between $13.8 billion and $14.2 billion. This lagged analysts' estimates of $14.85 billion.
For 2013 the company said it expected to earn at least $1.70, compared to the previous estimate of $2.13.
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Apart from Competition from Asian manufacturers which are offering cheaper laptops and desktop computers, the growing popularity of tablets with more powerful computing power is also a threat to traditional PCs.
Dell's Chief Financial officer commented that the muted outlook for the third quarter was due to lower delayed purchases by distributors as they were waiting for Microsoft's new Windows 8 operating system that will be released in October.