Thursday’s L.A. News RoundupThursday, August 23, 2012
FORECAST LOWERED: Shares of Guess Inc. sank 23 percent on Thursday after the Los Angeles apparel maker cut its annual profit and revenue forecasts. The company, which operates 511 stores in the U.S. and Canada, late Wednesday said comparable-store sales fell 8.5 percent in its fiscal second quarter. The company now expects profit for the year ending Feb. 2 will range between $2.15 and $2.30 a share, compared to earlier guidance of $2.50 to $2.65 a share.
OVERSEAS ACQUISITION: J2 Global Inc. on Thursday said that it acquired the New Zealand business of Zintel Communications, a cloud voice services provider. Chief Executive Hemi Zucker said the deal is part of the company’s effort to expand voice services internationally and particularly in the Asia-Pacific region. In March, J2 acquired Zintel’s Australian business. Terms of the acquisition were not disclosed.
STUDENT CARD: Green Dot Corp. is partnering with student lender Sallie Mae to market a prepaid card to students who do not have a bank account. Under the arrangement, any money left over from a Sallie Mae-issued student loan will be loaded onto the Monrovia’s company’s My Flex prepaid MasterCard that students can use to pay for books and some other expenses. The partnership may help Green Dot counter a loss in sales of its cards at major retailers where it is losing its exclusivity arrangements.