Guess 2026 Q2 Earnings Strong Performance as Net Income Surges 196%

Guess (GES) reported strong fiscal 2026 Q2 results, exceeding expectations. Revenue rose 5.5% to $772.94 million, while the company returned to profitability with a net income of $8.29 million, a 196% increase from a loss in the prior year. Improved operational efficiency and expense management drove this turnaround.

Revenue
Total revenue for the quarter increased by 5.5% to $772.94 million, up from $732.56 million in the prior year. Revenue breakdown shows that product sales amounted to $746.68 million, while net royalties stood at $26.26 million.

Earnings/Net Income
Guess returned to profitability with EPS of $0.12, reversing from a loss of $0.21 per share in the prior year, a 157.1% positive change. The company achieved a net income of $8.29 million, a 196.0% positive swing from a net loss of $8.64 million in the prior year. This marked a significant turnaround in financial performance.

Price Action
The stock price of Guess has edged down 0.47% during the latest trading day and 0.06% during the most recent full trading week. However, it has surged 22.92% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Guess (GES) shares after its revenue raise quarter-over-quarter on the financial report release date and holding for 30 days resulted in a significant underperformance. The strategy had a return of -42.62%, vastly underperforming the benchmark return of 58.85%. The excess return was -101.47%, and the CAGR was -17.45%, indicating a substantial loss over the 3-year period.

CEO Commentary
Carlos Alberini, CEO, stated that the company delivered second-quarter revenues ahead of expectations, driven by stronger-than-anticipated comparable store sales in Europe and the Americas Retail segment. The CEO noted continued improvement in same-store sales in the Americas Retail versus the prior quarter, alongside effective margin and expense management, resulting in GAAP EPS within expectations and better-than-expected adjusted EPS.

Guidance
The Company has suspended its practice of providing and updating financial guidance for fiscal year 2026 in light of the Proposed Transaction, and will not host a conference call in connection with its quarterly results. No forward-looking guidance on revenue, EPS, or operating performance for future periods was explicitly stated in the report.

Additional News
Guess announced a proposed take-private transaction with Authentic Brands Group, under which Authentic will acquire 51% and the Rolling Stockholders will acquire 49% of substantially all of the Company’s intellectual property, while the Rolling Stockholders will acquire 100% of the Company’s operating assets. Shareholders (other than the Rolling Stockholders) will receive $16.75 per share in cash, with the transaction expected to close in the fourth quarter of fiscal year 2026. Additionally, the Board of Directors approved a quarterly cash dividend of $0.225 per share, payable on September 26, 2025. The Company also acquired the New York-based fashion brand rag & bone in April 2024, expanding its lifestyle fashion portfolio.