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LOS ANGELES - Guess?, Inc. (NYSE:GES) reported better-than-expected third quarter results, with revenue increasing 7% to $791.4 million, exceeding analyst estimates of $767.9 million. The fashion retailer posted adjusted earnings per share of $0.35, surpassing the consensus forecast of $0.25.
However, the company’s shares slipped 1% following the announcement.
The company’s revenue grew 5% in constant currency compared to the same period last year, driven primarily by strong performance in its Americas Wholesale and Europe businesses. Americas Wholesale revenues surged 28%, while Europe revenues increased 10% in U.S. dollars.
"We are pleased with our third quarter performance, with revenue growth of 7% in U.S. dollars and 5% in constant currency, driven by a strong performance of our Americas Wholesale and Europe businesses," said Carlos Alberini, Chief Executive Officer. "In our Americas Retail business, despite continued softness, we were encouraged by the continued improvement in same store sales versus the prior quarter."
The company reported GAAP earnings of $25.6 million, or $0.48 per share, compared to a loss of $23.4 million, or -$0.47 per share, in the same quarter last year. Adjusted operating margin decreased to 4.7% from 5.8% in the prior-year period, primarily due to higher expenses and increased markdowns.
Regional performance was mixed, with Americas Retail revenues declining 2% and comparable sales decreasing 3%. Asia revenues fell 8% in U.S. dollars, while licensing revenues dropped 6%.
Guess? announced that its Board of Directors approved a quarterly cash dividend of $0.225 per share, payable on December 26, 2025, to shareholders of record as of December 10, 2025.
The company is in the process of being taken private through a transaction with Authentic Brands Group, which was approved by stockholders on November 21, 2025. Under the agreement, public shareholders will receive $16.75 per share in cash. The transaction is expected to close in the fourth quarter of fiscal 2026.
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