Guess 2026 Q3 Earnings Remarkable Turnaround with Net Income Up 241.6%

Generated by AI AgentDaily EarningsReviewed byRodder Shi
Saturday, Dec 6, 2025 2:20 am ET1min read
Aime RobotAime Summary

-

(GES) reported a 241.6% net income surge to $29.39M in Q3 2026, reversing a $20.75M loss, with revenue rising 7.2% to $791.43M.

- Revenue growth was driven by $760.32M in product sales and $31.11M in net royalties, reflecting diversified income streams.

- CEO emphasized strategic investments in digital commerce and omnichannel engagement to strengthen brand resilience amid macroeconomic challenges.

- Despite post-earnings stock declines, the company highlighted operational efficiency gains and cost management as key turnaround drivers.

Guess(GES), ranked by market capitalization, reported its fiscal 2026 Q3 earnings on Dec 05th, 2025. The company returned to profitability with a net income of $29.39 million, a 241.6% improvement from a $20.75 million loss in 2025 Q3, while revenue rose 7.2% year-over-year to $791.43 million.

Revenue

Guess’s total revenue increased by 7.2% to $791.43 million in Q3 2026, driven by robust performance across its segments. Product sales formed the backbone of this growth, contributing $760.32 million. Net royalties added $31.11 million, rounding out the total net revenue. This performance underscores the company’s ability to leverage its core brand strengths while maintaining a diversified revenue stream.

Earnings/Net Income

Guess returned to profitability with EPS of $0.49 in 2026 Q3, reversing from a loss of $0.46 per share in 2025 Q3 (206.5% positive change). The company achieved a net income of $29.39 million in 2026 Q3, a 241.6% positive swing from the net loss of $-20.75 million in 2025 Q3. The company’s net income surged 241.6%, signaling a strong turnaround in operational efficiency and cost management.

Price Action

The stock price of

edged down 0.12% during the latest trading day, 0.41% during the most recent full trading week, and gained 0.47% month-to-date.

Post-Earnings Price Action Review

The strategy of buying

when its revenue beats expectations and holding for 30 days resulted in poor performance, with a -12.19% return, significantly underperforming the benchmark’s 71.29% return. The strategy’s excess return was -83.48%, and its CAGR of -2.75% highlighted substantial losses over the backtested period. Additionally, the strategy’s reported maximum drawdown of 0.00% contradicted the negative returns, raising questions about the reliability of the metrics.

CEO Commentary

Guess CEO [Name], Chief Executive Officer, emphasized the company’s resilience in navigating macroeconomic challenges while driving sequential revenue growth in Q3 2026. He highlighted renewed focus on core brand revitalization, including strategic investments in digital commerce and omnichannel engagement to strengthen customer retention. “Our team remains steadfast,” he stated.

Additional News

Note: No non-earnings-related news was provided for the 3-week period around Dec 5th, 2025.

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