GUESS? INC (NYSE:GES) Reports Strong Q3 2026 Earnings, Beating Revenue and EPS Estimates

GUESS? INC (NYSE:GES) Reports Q3 Fiscal 2026 Results, Surpassing Analyst Expectations

Earnings Overview

GUESS? INC has announced its financial results for the third quarter of fiscal year 2026, concluding November 1, 2025. The company delivered a performance that exceeded analyst projections on key top and bottom-line metrics, driven by strength in its European and wholesale operations.

The fashion retailer reported quarterly revenue of $791.4 million, a 7% increase compared to the same period last year. This figure came in above the analyst consensus estimate of approximately $775.6 million. On a constant currency basis, revenue grew 5%.

Adjusted earnings per share (EPS) for the quarter were $0.35, showing a 3% increase from the $0.34 reported in the prior year. This result comfortably surpassed the analyst estimate of $0.26 per share.

Market Reaction and Price Action

Following the earnings release, the market's reaction in after-hours trading was muted, with shares experiencing a slight decline. This subdued movement occurs against the backdrop of the company's pending take-private transaction, which likely limits significant price swings as the stock trades near the proposed acquisition price.

• After-Market Performance: -0.59%
• Recent Performance: The stock has remained relatively flat over the past month, reflecting the market's anticipation of the upcoming transaction closure.

Regional Performance Breakdown

The company's revenue growth was not uniform across its global segments, highlighting a mixed operational landscape.

• Europe: Revenues increased 10% in U.S. dollars (6% in constant currency), with retail comparable sales rising 7%.
• Americas Wholesale: This segment was a standout performer, with revenues surging 28% (26% in constant currency).
• Americas Retail: Revenues decreased 2%, with comparable store sales down 3%.
• Asia: Revenues declined 8% in U.S. dollars (6% in constant currency).
• Licensing: Revenues decreased 6%.

Profitability and Upcoming Transaction

While revenue grew, the company's profitability metrics faced pressure. GAAP earnings from operations decreased to $23.2 million from $42.3 million in the prior year quarter, with the operating margin contracting to 2.9% from 5.7%. The company cited higher expenses, including costs related to the proposed transaction, store costs, restructuring charges, and increased markdowns as primary factors.

The earnings report was released in the shadow of a significant corporate development. On August 20, 2025, GUESS? entered into a definitive agreement for a take-private transaction with Authentic Brands Group. Under the terms, shareholders (excluding certain rolling stockholders) will receive $16.75 per share in cash. The company's stockholders have already adopted the merger agreement at a special meeting held on November 21, 2025. The transaction is expected to close in the fourth quarter of fiscal 2026, pending standard regulatory approvals.

In light of this pending transaction, GUESS? has suspended its practice of providing financial guidance and did not host a conference call to discuss the quarterly results.

Looking Ahead

With the company not providing formal guidance, investor focus shifts to analyst expectations for the coming periods. For the next quarter (Q4 Fiscal 2026), analysts are projecting revenue of approximately $1.02 billion and earnings-focused metrics that will be closely watched. For the full 2026 fiscal year, the sales estimate stands at around $3.23 billion.

For a detailed look at historical earnings, future estimates, and analyst projections for GUESS? INC, you can review the data here.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All data and estimates are subject to change. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.