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LOS ANGELES - Guess?, Inc. (NYSE:GES) reported better-than-expected second quarter results on Thursday, with revenue increasing 6% to $772.9 million, surpassing analyst estimates of $758.72 million. The fashion retailer posted adjusted earnings per share of $0.26, significantly exceeding the consensus forecast of $0.16.
Guess? shares were relatively unchanged following the results, trading down 0.2% after the announcement.
The revenue growth was primarily driven by stronger-than-expected comparable store sales in the company’s European business, which increased 14% in U.S. dollars and 9% in constant currency.
The Americas Retail segment also showed improvement in same-store sales compared to the previous quarter, though it still experienced a 5% decline YoY. Overall, total revenue rose 3% in constant currency compared to the same period last year.
"We are pleased with our second quarter performance, as we delivered revenues ahead of our expectations for the period," said Carlos Alberini, Chief Executive Officer. "During the period we managed margins and expenses well, which, coupled with the revenue growth, led to GAAP earnings per share within our range of expectations and better than expected adjusted earnings per share."
Despite the revenue beat, adjusted operating margin decreased to 3.7% from 5.2% in the same quarter last year, primarily due to higher expenses including store costs and advertising, unfavorable business mix, and higher markdowns.
The company’s European segment was the standout performer with operating margin increasing to 10.6% from 9.8% in the prior-year quarter. Meanwhile, the Americas Retail segment saw its operating margin decline to -3.7% from 1.5% a year earlier.
Guess? also announced a quarterly cash dividend of $0.225 per share, payable on September 26 to shareholders of record as of September 10.
The company is currently in the process of a take-private transaction with Authentic Brands Group, expected to close in the fourth quarter of fiscal 2026, and has suspended providing financial guidance.
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