Guess 2026 Q3 Earnings Remarkable 241.6% Net Income Turnaround

Guess (GES) reported fiscal 2026 Q3 earnings on November 25, 2025, delivering a strong performance that reversed a prior-year loss. The company exceeded expectations with a 7.2% revenue increase and a dramatic improvement in net income.

Guess returned to profitability, reporting $0.49 EPS compared to a $0.46 loss in 2025 Q3. Net income surged to $29.39 million, a 241.6% increase from a $20.75 million loss. The company suspended financial guidance due to its pending merger with Authentic Brands Group, shifting focus to transaction execution.

Revenue

Product sales drove the majority of revenue at $760.32 million, complemented by net royalties of $31.11 million. Total revenue reached $791.43 million, reflecting a 7.2% year-over-year increase. The Americas Wholesale and Europe segments were key contributors, while Americas Retail showed cautious optimism amid softness.

Earnings/Net Income

Guess’s return to profitability marked a significant turnaround, with net income rising from a loss of $20.75 million to $29.39 million. This 241.6% improvement underscores effective cost management and strategic alignment with the proposed transaction.

Price Action

The stock remained stable in the latest trading day but gained 1.07% over the past week and 0.59% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Guess shares after earnings releases yielded mixed results over three years. While the 2026 Q3 30-day holding period showed a modest 0.17% gain, prior quarters exhibited extreme volatility—such as a 21.20% gain in 2024 Q4 and a 33.85% decline in 2025 Q1. This inconsistency highlights the high-risk nature of the strategy, with significant short-term losses possible despite long-term potential.

CEO Commentary

CEO Carlos Alberini emphasized 7% U.S. dollar revenue growth and strategic alignment with the merger. He noted cautious optimism in Americas Retail and a focus on leveraging growth drivers amid market challenges.

Guidance

The company suspended financial guidance and conference calls due to the pending transaction. Leadership remains focused on operational execution and regulatory approvals.

Additional News

Guess announced supplemental disclosures for its proposed merger with Authentic Brands Group, signaling regulatory progress. UBS raised its price target to $16.75 from $13.00, citing the take-private deal. Additionally, the company updated shareholder litigation details, reflecting ongoing strategic consolidation efforts.