Nov 02, 2024

Guess? Q3 2025 Earnings Report

Revenue increased driven by rag & bone acquisition, offset by challenges in North America and Asia.

Key Takeaways

Guess?, Inc. reported a 13% increase in revenue to $739 million for Q3 2025, driven by the rag & bone acquisition and modest growth in core businesses. However, the company experienced a GAAP loss per share of $0.47, with adjusted EPS at $0.34. The company lowered its full fiscal year 2025 outlook due to persistent slow customer traffic in North America and Asia.

Revenues increased by 13% to $739 million, or 14% in constant currency.

GAAP loss per share was $0.47, while adjusted EPS was $0.34.

Operating margin was 5.7%, with an adjusted operating margin of 5.8%.

Full fiscal year 2025 outlook lowered, expecting revenue increase between 7.1% and 8.1%.

Total Revenue
$739M
Previous year: $651M
+13.4%
EPS
$0.34
Previous year: $0.49
-30.6%
Gross Profit
$322M
Previous year: $291M
+10.5%
Cash and Equivalents
$141M
Previous year: $244M
-42.3%
Free Cash Flow
-$105M
Previous year: -$24.1M
+337.8%
Total Assets
$2.79B
Previous year: $2.48B
+12.7%

Guess?

Guess?

Guess? Revenue by Segment

Guess? Revenue by Geographic Location

Forward Guidance

The Company’s expectations for the fourth quarter and full fiscal year 2025 are as follows: Expects Revenue Increase between 7.1% and 8.1% in U.S. Dollars. Expects GAAP and Adjusted Operating Margins between 6.1% and 6.4% and 6.2% and 6.5%, Respectively. Expects GAAP EPS between $0.70 and $0.82 and Adjusted EPS between $1.85 and $2.00

Positive Outlook

  • Expects Revenue Increase between 7.1% and 8.1% in U.S. Dollars
  • Expects GAAP operating margin 12.2% to 13.0%
  • Expects Adjusted operating margin 12.2% to 13.0%
  • Expects GAAP diluted EPS $1.10 to $1.22
  • Expects Adjusted diluted EPS $1.37 to $1.52

Challenges Ahead

  • Consumer sentiment
  • Slow customer traffic in North America
  • Slow customer traffic in Asia
  • Currencies
  • Freight costs and taxes

Revenue & Expenses

Visualization of income flow from segment revenue to net income