Guess posts $25.6 million Q3 profit despite ‘soft’ retail conditions

Guess black and white — The company also continued integrating Rag & Bone. (Source: Unsplash)

By Kaycee Enerva November 26, 2025

Text Size

Guess posted third-quarter sales gains despite soft retail conditions, with CEO Carlos Alberini noting stronger performance as the company progresses through a planned take-private deal.

“We are pleased with our third-quarter performance, with revenue growth of 7 per cent in US dollars and 5 per cent in constant currency,” Alberini said.

“In our Americas retail business, despite continued softness, we were encouraged by the continued improvement in same-store sales versus the prior quarter.”

The quarter also comes as Guess advances its proposed partnership with Authentic Brands Group.

Under the agreement, Authentic will acquire almost half (51 per cent) of the company’s intellectual property. In contrast, existing shareholders – including Maurice, Paul and Nicolai Marciano and Alberini – will acquire the remaining 49 per cent and take full ownership of Guess’s operating assets.

For the quarter ended November, Guess reported net earnings of $25.6 million, compared with a $23.4 million loss a year earlier. Adjusted net earnings were $19 million, up 8 per cent. Revenue rose 7 per cent to $791.4 million.

Regionally, Europe delivered a 10 per cent increase, while the Americas Wholesale grew 28 per cent. Americas Retail declined 2 per cent, and Asia fell 8 per cent. Licensing revenue decreased 6 per cent.

Adjusted operating income for the quarter was $37 million, down from $42.8 million last year, with operating margin narrowing to 4.7 per cent due to higher expenses and markdowns.

Segment margins declined in Europe, Americas retail, Americas wholesale and Asia, while licensing posted a slight improvement.

For the nine months, adjusted net earnings were $10.5 million, compared with $26.8 million a year earlier. Revenue rose 7 per cent to $2.21 billion. Operating income and margins weakened across most segments, reflecting higher costs, softer comparable sales in key markets and lower revenues in Asia.

The company also continued integrating Rag & Bone, a New York–based fashion brand it acquired last year with WHP Global.

Guess took ownership of all operating assets and liabilities, while a 50–50 joint venture with WHP now holds Rag & Bone’s intellectual property.

Over the past year, Rag & Bone has been folded into the company’s reporting structure, citing the brand as a key element of its broader portfolio strategy and future growth plans.