Guess Inc. GES, -2.52% shares dropped 4% in after-hours trading Monday after the clothier announced that it will cut its dividend in half and sell $250 million of convertible debt in order to fund stock buybacks. Guess disclosed that it will cut its quarterly cash dividend to 11.25 cents from 22.5 cents and offer $250 million in convertible senior notes for an accelerated share-repurchase program that will seek to purchase $200 million or more in shares. After closing with a 2.5% decline at $16.66, shares dropped below $16 in after-hours trades immediately following the announcement.
Guess? Inc. shares fell $0.39 (-2.34%) in after-hours trading Monday. Year-to-date, GES has declined -18.91%, versus a 16.66% rise in the benchmark S&P 500 index during the same period.
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