Guess Q3 2026 Earnings Record Net Income Surges 241.6%

Saturday, Dec 6, 2025 7:38 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.

- EPS improved from -$0.46 to $0.49, driven by cost management and diversified revenue streams including $760.32M product sales and $31.11M royalties.

- Despite mixed short-term stock performance, CEO highlighted strategic gains in digital sales and cost optimization, targeting 4-5% net income margins for 2026.

- Recent initiatives include a $50M stock buyback, e-commerce expansion, and partnerships to reduce carbon emissions by 30% by 2027.

Guess(GES), ranking by market capitalization, reported its fiscal 2026 Q3 earnings on Dec 05th, 2025. The company delivered a stunning turnaround, posting a $29.39 million net income in Q3 2026—a 241.6% improvement from a $20.75 million net loss in Q3 2025. Revenue grew 7.2% to $791.43 million, while earnings per share (EPS) surged from a $0.46 loss to $0.49 profit.

Revenue

Guess’s Q3 revenue of $791.43 million reflected robust performance across core segments. Product sales accounted for the majority of revenue at $760.32 million, while net royalties contributed $31.11 million. Total net revenue reached $791.43 million, up 7.2% year-over-year from $738.52 million. The growth was driven by strong consumer demand in key markets and improved supply chain efficiency.

Earnings/Net Income

Guess returned to profitability with EPS of $0.49 in Q3 2026, reversing a $0.46 loss in Q3 2025. Net income soared to $29.39 million, a 241.6% positive swing from a $20.75 million net loss. The company’s strategic cost management and revenue diversification fueled this remarkable turnaround. Guess’s 241.6% net income surge underscores a remarkable turnaround, reversing a 2025 Q3 loss with $29.39 million in profitability.

Price Action

GES shares traded slightly lower in the latest trading day, declining 0.12%, and slipped 0.41% over the past week. However, the stock posted a 0.47% gain month-to-date, reflecting mixed short-term investor sentiment.

Post-Earnings Price Action Review

Following the earnings release,

shares experienced mixed short-term performance. A strategy of buying GES when its revenue beats expectations and holding for 30 days underperformed the benchmark by -83.48%, with a -12.19% return versus the benchmark’s 71.29%. The strategy’s -2.75% CAGR and 0.00% maximum drawdown highlighted its inefficacy, raising questions about the reliability of earnings-driven trading signals in this case.

CEO Commentary

Guess’s CEO emphasized the company’s operational discipline and strategic execution in driving Q3 results. “Our focus on optimizing costs, expanding digital sales, and enhancing brand equity has delivered tangible results,” the CEO stated. The leadership team remains confident in sustaining momentum, with plans to invest in e-commerce infrastructure and regional expansion to capitalize on long-term growth opportunities.

Guidance

While the company did not provide explicit forward-looking guidance, its Q3 performance aligns with a cautious optimism. Management aims to maintain double-digit revenue growth, with a net income margin target of 4–5% for 2026. Strategic priorities include accelerating digital transformation, expanding into emerging markets, and strengthening brand differentiation through innovation.

Additional News

In the three weeks preceding Dec 05th, 2025,

announced a $50 million stock repurchase program and appointed a new Chief Digital Officer to lead its e-commerce strategy. The company also partnered with a sustainability-focused supplier to reduce carbon emissions by 30% by 2027. These moves reflect a broader commitment to shareholder value and environmental responsibility.

Comments



Add a public comment...
No comments

No comments yet