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May 03, 2025
Guess? Q1 2026 Earnings Report
Guess? reported a net loss in Q1 2026 despite solid revenue growth led by the integration of rag & bone and strong wholesale gains.
Key Takeaways
Guess? delivered stronger-than-expected top-line results in Q1 FY26, supported by growth across most regions and successful integration of rag & bone. However, increased expenses, unfavorable currency impact, and asset impairments led to a net loss.
Revenue rose 9% year-over-year to $647.8 million, with strong growth in Americas Wholesale and Europe.
The company posted a GAAP net loss of $32.9 million and an adjusted net loss of $22.3 million.
Operating income declined due to higher expenses and currency impacts, resulting in a GAAP operating loss of $33.3 million.
Guess? continues to invest in strategic initiatives including expanding rag & bone, Guess Jeans, and Athleisure lines.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Guess? expects moderate growth in FY26, driven by brand expansion and operational improvements, while remaining cautious about cost pressures and macroeconomic risks.
Positive Outlook
- Revenue growth expected between 5.5% and 7.4% in U.S. dollars for FY26.
- Adjusted EPS forecasted between $1.32 and $1.64.
- rag & bone integration and expansion expected to boost top-line performance.
- Continued focus on direct-to-consumer sales productivity.
- Mitigation strategies in place for tariff-related impacts, limited to under $10 million.
Challenges Ahead
- GAAP EPS forecast range remains modest at $0.87 to $1.11.
- Operating margins remain under pressure from store costs and marketing expenses.
- Asia performance declined significantly in Q1 and may remain challenged.
- Negative retail comparable sales in Americas Retail segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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