Guess 2026 Q2 Earnings Strong Performance with 196% Net Income Surge

Generated by AI AgentAinvest Earnings Report Digest
Friday, Sep 5, 2025 11:06 pm ET2min read
GES--
Aime RobotAime Summary

- Guess (GES) reported Q2 2026 earnings with $772.94M revenue, a 5.5% YoY increase, driven by $746.68M product sales and $26.26M royalties.

- The company turned a $8.64M net loss into $8.29M profit (196% swing) and achieved $0.12 EPS, reversing last year's $0.21 loss per share.

- CEO Mickey Marciano emphasized denim/lifestyle categories and digital innovation, while maintaining cost discipline amid fluctuating demand.

- Shares surged 30.19% month-to-date post-earnings but dipped 0.12% recently, reflecting mixed investor sentiment toward fashion retail sector dynamics.

- Guess prioritizes profitability and cash flow optimization in 2026, with strategic investments in brand revitalization and global market expansion.

Guess(GES) reported its fiscal 2026 Q2 earnings on Sep 05th, 2025. The company delivered results that far exceeded expectations, returning to profitability and posting a significant net income turnaround. The report highlights a robust revenue growth and a strong shift from a prior year loss to a profit, signaling improved operational and strategic execution.

Guess posted a 5.5% year-over-year increase in total revenue, reaching $772.94 million in Q2 2026 compared to $732.56 million in Q2 2025. Product sales accounted for the majority of this growth, contributing $746.68 million, while net royalties added $26.26 million to the overall revenue. The company maintained a strong presence across its key markets and continues to leverage its brand positioning in fashion-forward categories such as denim and lifestyle apparel.

The company returned to profitability with EPS of $0.12 in Q2 2026, reversing from a loss of $0.21 per share in the same period last year. This represents a 157.1% positive change in earnings per share. On the net income front, Guess posted $8.29 million in Q2 2026, a dramatic turnaround from the $8.64 million net loss in Q2 2025, representing a 196.0% positive swing. These results underscore the company’s effective cost management and operational improvements.

Guess’s stock price has shown a strong month-to-date performance, surging 30.19% since the start of the month. However, it has edged down slightly in the latest trading day and the most recent full trading week, down 0.12% and 0.18%, respectively. The mixed near-term price action reflects investor digestion of the earnings report and ongoing assessments of the fashion retail sector.

CEO Maurice "Mickey" Marciano emphasized the company’s resilience amid ongoing challenges in the fashion retail sector, noting that brand visibility and core product categories such as denim remain key growth drivers. He highlighted the importance of reinforcing Guess’s identity as a lifestyle brand rooted in Western-inspired design, while adapting to evolving consumer preferences through digital innovation and omnichannel strategies. Marciano acknowledged the need for cost discipline and operational efficiency, particularly in response to fluctuating demand and inventory management pressures. Despite these hurdles, he expressed a cautiously optimistic outlook, underscoring the potential for long-term value creation through strategic investments in product quality and brand storytelling.

The company guided to continued focus on profitability and cash flow optimization for the remainder of 2026, with no explicit quantitative targets provided. Management expects to maintain disciplined capital allocation and invest selectively in digital transformation and brand revitalization initiatives. While not disclosing specific revenue or EPS projections, the CEO expressed confidence in the brand’s ability to deliver stable performance by leveraging its heritage and expanding its global presence through targeted market strategies.

Additional News
Recent Nigerian news featured a tragic incident in Benue state where families of slain security operatives received N380 million in support. Also highlighted was the commendable achievement of a six-year-old Kwara prodigy who won a gold medal in scrabble. Meanwhile, the Nigerian Basketball Federation (NBF) seeks compensation after being excluded from the World Championship. These events reflect broader societal and sporting developments in Nigeria around the time of Guess’s earnings release.

Get noticed about the list of notable companies` earning reports after markets close today and before markets open tomorrow.

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