Guess 2026 Q3 Earnings Profitability Returns with 241.6% Net Income Surge

Guess (GES) reported fiscal 2026 Q3 earnings on Nov 25, 2025, delivering a significant turnaround with net income of $29.39 million—a 241.6% improvement from a $20.75 million loss in 2025 Q3. Revenue rose 7.2% year-over-year to $791.43 million, exceeding expectations. The company suspended financial guidance due to pending transaction-related uncertainties, while CEO Carlos Alberini highlighted operational progress amid strategic ambiguity.

Revenue

Guess’s total revenue climbed to $791.43 million in Q3 2026, a 7.2% increase from $738.52 million in the same period last year. Product sales dominated the top line at $760.32 million, while net royalties contributed $31.11 million. The performance was driven by strong Americas Wholesale and Europe segments, with Americas Retail showing cautious optimism despite softer demand.

Earnings/Net Income

The company returned to profitability with an EPS of $0.49, reversing a $0.46 loss in 2025 Q3. Net income surged to $29.39 million, reflecting a dramatic 241.6% turnaround. The EPS outperformance marked a significant operational improvement, reversing a year-ago deficit.

Price Action

Guess’s stock showed muted daily movement (0.00%), but gained 1.07% weekly and 0.59% month-to-date. The post-earnings price action remained volatile, with historical backtests showing mixed outcomes tied to quarterly reporting cycles.

Post-Earnings Price Action Review

The strategy of buying GES shares after a revenue beat and holding for 30 days yielded inconsistent results over three years. A 15.50% gain in 2024 contrasted with a 36.50% loss in 2025, followed by a 35.50% rebound in 2026. Volatility clustered around earnings reports, with 2025’s sharp decline underscoring the risks of post-earnings exposure. Success depended on market sentiment and broader economic conditions.

CEO Commentary

Carlos Alberini emphasized 7% revenue growth in U.S. dollars and 5% in constant currency, driven by Americas Wholesale and Europe. He noted “continued improvement in same-store sales” in Americas Retail despite “softness.” The CEO reiterated the pending Authentic Brands Group merger as a strategic focus but acknowledged suspended guidance due to regulatory uncertainties, balancing optimism with caution.

Guidance

Guess suspended financial guidance, citing the pending transaction’s regulatory and strategic complexities. Forward-looking risks include delays in closing the deal, macroeconomic pressures, and market volatility. The company prioritizes executing the transaction over issuing forecasts, leaving outcomes contingent on external developments.

Additional News

1. M&A Activity: Guess announced supplemental disclosures for its proposed $1.1 billion merger with Authentic Brands Group, pending regulatory approvals. The deal aims to take the brand private, with UBS raising its price target to $16.75 on the transaction.

2. Dividend Stability: The company maintained its 5.3% dividend yield, with a 4-year growth streak and a payout ratio of 1.4%. Analysts noted the yield’s appeal amid sector underperformance.

3. Strategic Uncertainty: Shareholder litigation updates and delayed guidance highlighted the transaction’s risks, including potential regulatory hurdles and market volatility.