Guess?, Inc. Reports Third Quarter Earnings Surge Despite Retail Challenges

2025-11-27 companies

Los Angeles, Thursday, 27 November 2025.
Guess?, Inc. turned a $20.75 million loss into a $29.39 million profit for Q3 2026, a 241.6% increase, thanks to strong performance in the Americas Wholesale and Europe segments.

Significant Financial Turnaround

Guess?, Inc. (NYSE: GES) has reported a remarkable financial turnaround for the third quarter of fiscal year 2026, ending November 1, 2025. The company achieved a net income of $29.39 million, which marks a dramatic 241.6% improvement compared to a prior-year loss of $20.75 million [1][2]. This impressive recovery is largely attributed to robust performances in the Americas Wholesale and Europe segments, where revenues surged by 28% and 10% respectively [3][4].

Revenue Growth and Market Performance

For the third quarter, Guess?, Inc. reported a 7.2% increase in revenue, totaling $791.43 million, surpassing analyst expectations of $775.6 million [1][5]. The earnings per share (EPS) also showed a significant improvement, reaching $0.49, up from a $0.46 loss per share the previous year [6]. This performance underscores the company’s effective cost management and strategic alignment with its proposed merger with Authentic Brands Group [2][7].

Challenges and Strategic Moves

Despite these positive results, Guess?, Inc. continues to face challenges in its Americas Retail segment, where revenues declined by 2% and comparable store sales fell by 3% [3][8]. In response, the company has focused on operational execution and strategic growth drivers, including its pending take-private transaction with Authentic Brands Group, which is expected to close in the fourth quarter of fiscal 2026 [4][9].

Future Outlook and Transaction Details

The proposed transaction with Authentic Brands Group, announced on August 20, 2025, involves a strategic partnership where Authentic will acquire 51% of Guess?’s intellectual property while the Rolling Stockholders will acquire 100% of the company’s operating assets. This deal, valued at $1.1 billion, aims to enhance Guess?’s strategic positioning and long-term growth prospects [1][10]. The company has suspended its financial guidance and conference calls in light of this transaction, focusing instead on regulatory approvals and transaction execution [2][11].

Sources

earnings loss Guess Inc.