Guess 2026 Q3 Earnings 241.6% Net Income Surge Drives Profitability

Guess (GES) reported fiscal 2026 Q3 earnings on Nov 25, 2025, delivering a strong performance with a 241.6% year-over-year net income increase, reversing a prior loss. The company exceeded expectations with a $0.49 EPS, compared to a $0.46 loss in 2025 Q3. Suspended guidance reflects pending take-private negotiations with Authentic Brands Group, which remains subject to regulatory approvals.

Revenue

Guess’s total revenue rose 7.2% year-over-year to $791.43 million, driven by robust product sales. Product sales led the revenue growth with $760.32 million, supplemented by net royalties of $31.11 million, contributing to the total net revenue of $791.43 million. The Americas Wholesale and Europe segments were key contributors, while Americas Retail faced softer demand.

Earnings/Net Income

The company returned to profitability with a $29.39 million net income, a dramatic turnaround from a $20.75 million loss in 2025 Q3. This 241.6% swing underscores improved operational efficiency and cost management. The significant turnaround in EPS and net income highlights strong operational improvements and effective cost management.

Post-Earnings Price Action Review

The strategy of buying Guess shares after its revenue raise and holding for 30 days yielded mixed results over three years. While the overall return was 14.76%, performance varied quarterly, with notable gains in Q3 2025 (35.97%) but no movement post-Q1 and Q3 2026 reports. The 30-day hold period proved insufficient for capturing long-term gains, especially after strong reports like Q1 2026. Market reactions to revenue raises remained volatile, emphasizing the need for extended holding periods or refined trading strategies to maximize returns.

CEO Commentary

CEO Carlos Alberini highlighted 7% U.S. dollar revenue growth, driven by Americas Wholesale and Europe, while noting improved same-store sales in Americas Retail. The tone balanced optimism with caution, acknowledging ongoing challenges in specific markets.

Guidance

Financial guidance was suspended due to the pending take-private transaction with Authentic Brands Group. No forward-looking metrics were provided, pending regulatory approvals.

Additional News

1. Take-Private Deal: Guess’s proposed merger with Authentic Brands Group advanced, with supplemental disclosures filed, though regulatory approvals remain pending.

2. Analyst Price Target Hike: UBS raised its price target to $16.75, citing the take-private deal, while maintaining a Neutral rating.

3. Dividend Resilience: Guess has raised its dividend for four consecutive years, with a current yield of 5.3%, despite market volatility.