Guess shares climb 15% on forecast

Shares of clothing maker Guess Inc. advanced 15% after the company increased its full-year profit forecast, citing sales that were higher than anticipated.

Guess shares jumped $6.29 to $47.72. The stock has gained 50% this year.

Clothing retailers are discounting prices to boost sales as concern about falling home values, rising fuel bills and dimmer employment prospects caused consumer confidence to fall in October. Guess, known for its jeans, is one of the few retailers that have avoided most price cuts, said Christine Chen, a Needham & Co. analyst in San Francisco.

“Everybody has been concerned about slowing mall traffic, but this is one of the few companies that hasn’t been affected,” Chen said. “Some of their items are discounted right now, but the vast majority are selling at full price.”

Net income for the fiscal year ending Feb. 2 will be $1.85 to $1.90 a share, up from the previous forecast for a high of $1.84, the Los Angeles-based company said. Analysts expect full-year profit of $1.85, according to Bloomberg data.

Sales in the second half of the year have exceeded company forecasts, rising “well over 30%” in the fiscal third quarter, Guess said.