Guess Shares Tumbled 17% Amid The Founder'S Sexual Harassment Scandal.

The fourth quarter results were worse than the market's earnings expectations, and coincided with competitors: Levi 's Levi's's parent company Levi Strauss & Co. (NYSE:LEVI) (referred to as LS&Co.) returned to the NYSE, and cowboy Brand Company Guess Inc. (NYSE:GES) shares fell by nearly 17% in early trading on Thursday.

As of the 2019 quarter of February 2nd, Guess recorded a net profit of US $23 million 232 thousand or earnings per share of US $0.28, adjusted by US $EPS0.70, which was 12.9% higher than the 0.62 US dollars in the end of 2018, but worse than the $0.75 expected by Refinitiv.

During the reporting period, Guess also saw a 0.7% decline in the same store sales in the fourth quarter, while the fixed exchange rate increased by 0.4%, while the market expected a 1.5% increase in the same store's sales.

Quarterly earnings of $837 million 100 thousand, an increase of 5.7% over the same period of $792 million 200 thousand in 2018.

In the early February, Victor Herrero, the group's chief executive, Carlos Alberini, said in its performance bulletin that there will be tremendous growth opportunities for brands to connect with young consumers worldwide. He also said he would work closely with the team to make strategic plans.

The group's predecessor, CEO Victor Herrero, stepped down at the end of January, and the beloved professional manager was considered to be the victim of Paul Marciano's involvement in the "MeToo" campaign.

In February last year, Kate Upton, the famous American model Kate Upton, was the victim of Paul Marciano's use of sexual harassment. She once made an advertisement for Guess brand in 2011.

Although Paul Marciano, who was then chairman of the board of directors, denied any wrongdoing on Kate Upton, he withdrew from the group's agenda management, and Guess Inc. set up a special committee to investigate.

Before the end of January, Paul Marciano said it would quit the company completely by the end of January, but before the end of the end of January, the company issued a statement, "under the board of directors", and PaulMarciano "agreed to continue to serve as the chief creative officer", and the term "as he wishes".

In the case of sluggish retail sales in the US, Guess's gross profit margin fell 60 basis points to 36.6% in the fourth quarter and 306 million 100 thousand US dollars in gross profit, which was 3.7% higher than that in the same period in 2018. The adjusted operating profit increased 7.2% to 76 million 921 thousand US dollars. The adjusted operating profit margin was 9.2% percentage points year-on-year improvement of 10 basis points, and the actual operating profit rate 8% fell by an annual basis of 70 basis points.

Guess expects fixed income growth of 4.0- 5% in the current fiscal year, with expected revenue growth of 2.5-3.5% in the first quarter, and EPS 1.09-1.21 in the whole year, while expected loss in the first quarter and -0.29-- $0.25 in EPS.

In the 2019 fiscal year, Guess recorded a net profit of US $14 million 99 thousand or EPS0.16 US dollars. After adjustment, net profit increased by 12.8% to US $58 million 236 thousand, earnings per share increased by 40% to 0.98 US dollars, and 2018 in fiscal year, which was US $0.70.

Guess? Inc. (NYSE:GES) fell close to $19.31 on Thursday, narrowing to 12.51%, which has fallen more than 7% so far this year, while the S & P 500 index has recorded an increase of 13% over the same period.