Guess shares take a beating due to investigation concerns.GUESS INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. .'S fourth-quarter results--should have been cause for celebration. The Los Angeles-based retailer beat analysts' estimates with revenues that jumped 23 percent and earnings that rose 73 percent from the same quarter a year earlier. The numbers capped a stellar year that saw Guess shares skyrocket 200 percent and top $37. But instead of uncorking the champagne, investors took a hammer to Guess shares. After opening at $47.19 on Jan. 16, the day the fourth-quarter results were announced, the stock has sunk nearly 28 percent and settled in around $37 as of early last week. What has investors spooked? The matter of Carlos Alberini, Guess president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , and the Securities and Exchange Commission is clearly part of the equation. The SEC is considering an investigation of Alberini in connection with his tenure at Mahwah, N.J.-based Footstar Inc., where he was chief financial officer prior to joining Guess. Although Alberini maintains that an SEC probe is unnecessary, the possibility has investors concerned that he'll take his eye off Guess should he face an investigation. The turnaround specialist's cost-cutting efforts have been credited with helping push Guess' operating margins to nearly 11 percent last fiscal year, ahead of the company's planned pace. There is also Guess' underwhelming un·der·whelm tr.v. un·der·whelmed, un·der·whelm·ing, un·der·whelms To fail to excite, stimulate, or impress: projection of first-quarter same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. , a crucial measure in the retail industry. During a conference call, Alberini said March same-stores sales would be flat and, for the second quarter, the increase would be around 10 percent, below loftier expectations. Perhaps sensing that the lukewarm projection signals a comedown come·down n. 1. A decline to a lower status or level. 2. a. A feeling of disappointment or depression. b. A cause of disappointment or depression. , some institutional investors may be running from Guess. They are betting the stock has already peaked after rising 10-fold in the last two years. Sellers are following the lead of founders and co-chief executives Paul and Maurice Marciano, who have offloaded at least 775,000 shares of common stock since last year and could sell up to 4.9 million more, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a document filed with the SEC. Staff reporter Rachel Brown Rachel Brown (born July 2 1980) is an English footballer, currently playing as goalkeeper for Everton Ladies and England Women. After a long spell out with injury, Brown returned to the England team against Sweden in the last group game of Women’s Euro 2005. can be reached at (323) 549-5225, ext. 224, or at rbrown@labusinessjournal.com. |
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