Guess Inc. has set a new $500 million stock repurchase program.
The buyback authorization follows a $250 million repurchase provision set in March 2011, $19 million of which remains available. Guess said the $231 million already spent had been used to buy 8.2 million shares, including 5 million shares during the current second quarter of its fiscal year. That works out to an average price of $28.17 a share.
Guess disclosed details of the authorization after the close of the markets Tuesday. During the trading day, shares rose 17 cents, or 0.6 percent, to $28.30. Their 52-week high, reached July 7, was $44.89, and the corresponding low, touched on May 22, was $24.23.
Guess said it would draw from the new authorization “from time to time and as market and business conditions warrant.” Both the 2011 and 2012 programs can be discontinued without notice at any time.
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At the end of the first quarter on April 28, Guess had 89.5 million shares of common stock outstanding. In the first quarter, net income dropped 37.6 percent, to $26.6 million, while revenues declined 2.2 percent to $579.3 million and gross margin fell 130 basis points to 40.6 percent of sales.