Shares of Guess Inc. (GES) plummeted as much as 10% in premarket trading on Thursday, setting the stock up for a new 52-week low and its fourth consecutive day of losses. The sharp decline came after the apparel retailer reported mixed second-quarter results and lowered its guidance for the fiscal year 2025, citing a "softer consumer environment".

While Guess beat sales expectations with a 10% increase in net revenue to $732.6 million, it missed profit estimates by a penny per share. The company reported an adjusted profit of $0.42 per share, down 42% from the same quarter last year, as higher expenses, promotional pricing, and the impact of newly acquired businesses weighed on its operating margin.

More concerning for investors was Guess' cautious outlook for the remainder of the fiscal year. The company slashed its earnings guidance for FY25 to a range of $2.42 to $2.70 per share, well below the previous guidance of $2.62 to $3.00 and the consensus estimate of $3.09 per share. Guess also lowered its expected adjusted operating margin to 7.3% to 7.8%, down from 9.2% in FY24.