Guess 2026 Q3 Earnings Strong Turnaround with 241.6% Net Income Surge

Guess (GES) reported fiscal 2026 Q3 earnings on Nov 25, 2025, delivering a sharp reversal to profitability. The company posted a $0.49 EPS, a dramatic 206.5% improvement from a $0.46 loss in the prior year, while net income surged to $29.39 million—a 241.6% positive swing from a $20.75 million deficit. Guidance was suspended due to the pending take-private transaction with Authentic Brands Group.

Revenue

Guess’s total revenue rose 7.2% year-over-year to $791.43 million, driven by robust performance in product sales and royalties. Product sales accounted for the lion’s share at $760.32 million, reflecting strong demand across core markets. Net royalties added $31.11 million, contributing to the overall growth. The company’s Americas and Europe segments were key drivers, with U.S. dollar revenue up 7% and constant currency growth of 5%.

Earnings/Net Income

Guess returned to profitability with a $0.49 EPS, a dramatic 206.5% improvement from a $0.46 loss in the prior year. Net income reached $29.39 million, reversing a $20.75 million deficit. The turnaround underscores operational progress amid strategic shifts.

Post-Earnings Price Action Review

The strategy of purchasing GES shares on earnings releases with revenue growth and holding for 30 days showed mixed results. While the 14.79% annualized return lagged the SPY by 1.99 percentage points, the strategy stabilized in Q3 2026 after earlier losses in early 2025. Investors seeking conservative exposure might consider this approach, though market underperformance remains a caution.

CEO Commentary

CEO Carlos Alberini highlighted 7% U.S. dollar revenue growth and 5% constant currency gains, attributing success to Americas Wholesale and Europe. Improved same-store sales in Americas Retail, despite softness, signaled optimism. The proposed merger with Authentic Brands Group was framed as a strategic pivot to long-term value creation.

Guidance

Financial guidance and conference calls were suspended pending the take-private deal, expected to close in Q4 2026. The company emphasized transparency challenges during this transitional phase.

Additional News

Guess’s proposed merger with Authentic Brands Group remains a focal point, with supplemental disclosures released Nov 13. UBS raised its price target to $16.75 on the take-private deal, maintaining a Neutral rating. Meanwhile, the company’s stock surged 65% from February’s Fair Value signal, outperforming sector peers amid broader apparel sector volatility.

Additional Metrics

• Market Cap: $881.76M

• P/E Ratio: 48.82

• Dividend Yield: 5.30%

• 52-Week Range: $8.48–$18.07

Analyst Outlook

Neutral consensus with a $16.75 price target, reflecting mixed technical indicators and sector underperformance.

Key Risks

• Pending merger regulatory hurdles

• Retail market volatility in Americas and Asia

• Earnings strategy underperformance vs. benchmarks

Investor Takeaway

Guess’s Q3 turnaround highlights strategic progress, but investors must weigh near-term uncertainty from the pending transaction against long-term value creation potential.