Guess Q3: Revenue up, net earnings positive ahead of delisting

Guess, Inc. reported a strong third-quarter performance for the period ended November 1, 2025, posting higher revenue and a return to profitability even as it moves toward a proposed take-private transaction with Authentic Brands Group.

Chief executive officer Carlos Alberini said the company delivered encouraging results, citing 7 percent revenue growth in U.S. dollars and 5 percent in constant currency. “We are pleased with our third quarter performance, driven by a strong performance of our Americas Wholesale and Europe businesses,” Alberini noted. “In our Americas Retail business, despite continued softness, we were encouraged by the continued improvement in same-store sales versus the prior quarter.”

Take-private transaction progressing

On August 20, 2025, Guess announced a definitive agreement under which Authentic Brands Group will acquire 51 percent of the company’s intellectual property, with the remaining 49 percent retained by key existing shareholders, including members of the Marciano family and Alberini.

The Rolling Stockholders will also acquire 100 percent of the company’s operating assets. Upon closing, public shareholders (excluding Rolling Stockholders) will receive 16.75 dollars per share in cash, and Guess will be delisted.

Given the pending deal, Guess has suspended earnings calls and financial guidance.

Third quarter result highlights

Guess reported GAAP net earnings of 25.6 million dollars, a sharp improvement from a 23.4 million dollars GAAP net loss a year ago. Results included a 17.9 million dollars unrealized gain tied to valuation changes in derivatives related to its 2028 convertible notes, compared with a sizable loss in the prior year. GAAP diluted EPS was 48 cents, versus a loss of 47 cents last year, including an estimated 8 cents benefit from currency.

Adjusted net earnings rose 8 percent to 19 million dollars, with adjusted diluted EPS up 3 percent to 35 cents, supported by a 9 cents positive impact from currency.

Total net revenue climbed 7 percent to 791.4 million dollars. Across core markets, revenues in Europe were up 10 percent in USD and 6 percent in constant currency; while retail comps rose 7 percent. Americas retail declined 2 percent and comps fell 3 percent, while Americas wholesale revenue surged 28 percent.

Asia revenue declined 8 percent; while comps fell 5 percent. Licensing revenues were down 6 percent.

GAAP operating income fell to 23.2 million dollars from 42.3 million dollars, reflecting higher expenses related to the proposed transaction, store operations, restructuring charges, markdowns, and impairment costs. Adjusted operating income declined 13.5 percent to 37 million dollars, with adjusted operating margin down to 4.7 percent.

The company also highlighted its growing multi-brand strategy, following the April 2024 acquisition of rag & bone, now fully integrated into its reporting segments.

The company's board approved a 0.225 dollars per share quarterly cash dividend, payable December 26, 2025 to shareholders of record on December 10.