Financial Performance - For the three months ended November 1, 2025, product sales increased to $760.32 million, up from $705.51 million for the same period last year, representing a growth of 7.7%[13] - Net revenue for the nine months ended November 1, 2025, reached $2.21 billion, compared to $2.06 billion for the same period in the previous year, reflecting an increase of 7.2%[13] - Gross profit for the three months ended November 1, 2025, was $335.98 million, compared to $321.88 million for the same period last year, indicating a growth of 4.4%[13] - The company reported a net earnings of $29.39 million for the three months ended November 1, 2025, compared to a net loss of $20.76 million for the same period last year[13] - Net earnings for the nine months ended November 1, 2025, were $6,438,000, a significant improvement from a net loss of $(13,485,000) in the same period last year, representing a turnaround of approximately 148%[18] - Total net revenue for the three months ended Nov 1, 2025, was $791.427 million, a significant increase from the previous year[108] - For the nine months ended Nov 1, 2025, total net revenue was $2.212 billion, with product sales amounting to $2.130 billion[109] Assets and Liabilities - Total assets as of November 1, 2025, amounted to $3.01 billion, an increase from $2.77 billion as of February 1, 2025, representing a growth of 8.7%[12] - Current liabilities remained stable at $831.91 million as of November 1, 2025, compared to $831.33 million as of February 1, 2025[12] - The company’s long-term debt and finance lease obligations increased to $299.54 million as of November 1, 2025, compared to $150.67 million as of February 1, 2025[12] - Total debt and finance lease obligations as of November 1, 2025, amounted to $326,252, with long-term obligations at $299,542[114] Cash Flow and Investments - Cash flows from operating activities showed a net cash used of $(37,956,000), an improvement compared to $(61,555,000) in the prior year, indicating a reduction in cash outflow by about 38%[18] - Net cash used in investing activities was $(71,795,000), a decrease from $(85,333,000) in the prior year, indicating a 16% improvement in cash management[18] - The company reported a net cash provided by financing activities of $68,777,000, contrasting with a net cash used of $(61,977,000) in the prior year, indicating a positive shift in financing strategy[18] Expenses - Selling, general and administrative expenses for the three months ended November 1, 2025, were $309.03 million, up from $279.39 million for the same period last year, an increase of 10.6%[13] - The company reported depreciation and amortization expenses of $54,762,000, up from $51,114,000, reflecting a 5% increase year-over-year[18] - Advertising and marketing expenses for the three and nine months ended November 1, 2025, were $25.3 million and $76.3 million, respectively, compared to $25.7 million and $68.6 million for the same periods in 2024[51] Shareholder Activities - Dividends paid during the period totaled $43,413,000, down from $167,187,000, representing a reduction of approximately 74%[18] - The cash dividend declared per share for the three months ended November 1, 2025, was $0.225, down from $0.300 in the same period in 2024[90] - The company had remaining authority under the 2024 Share Repurchase Program to purchase approximately $139.8 million of its common stock as of November 1, 2025[89] Acquisitions and Mergers - Guess? announced the acquisition of all operating assets and a 50% interest in the intellectual property assets of rag & bone on April 2, 2024[25] - The company completed the acquisition of rag & bone on April 2, 2024, which included 34 stores in the U.S. and two in the U.K.[59] - A proposed take-private transaction with Authentic Brands Group was announced on August 20, 2025, offering shareholders $16.75 per share in cash[26] - The merger agreement includes a strategic partnership where Authentic would own 51% of the company's intellectual property[27] - The company’s stockholders adopted the merger agreement on November 21, 2025, with certain regulatory approvals still pending[29] Inventory and Receivables - The company's inventories increased to $692.266 million as of November 1, 2025, compared to $562.649 million as of February 1, 2025, representing a rise of about 23.1%[98] - As of November 1, 2025, total accounts receivable amounted to $417.175 million, up from $397.815 million as of February 1, 2025, reflecting a growth of approximately 4.3%[97] - Approximately 43% of the Company's total net trade accounts receivable were subject to credit insurance coverage as of November 1, 2025[49] Legal and Regulatory Matters - The Company is involved in legal proceedings, including a customs tax assessment totaling €9.8 million ($11.3 million) from the Italian Customs Agency, which the Company is appealing[182] Pension and Benefits - The net periodic defined benefit pension cost for the three months ended November 1, 2025, was $1.821 million, with a total cost of $5.329 million for the nine months ended[189] - The foreign pension plans had a total projected benefit obligation of $77.2 million and plan assets of $63.1 million as of November 1, 2025, resulting in a net liability of $14.1 million[188] Market Conditions - The Company continues to monitor macroeconomic conditions, including inflation and consumer spending declines, which are negatively impacting its business[36]

Traders work on the floor of the New York Stock Exchange (NYSE) after the opening bell in New York on December 3, 2025.After shaking off some of the weakness at the start of the month, markets seemed to be ready to board Santa's sleigh, and rode into a second straight day of gains this week. Wednesday's rally was on the back of surprisingly weak private jobs data, with payrolls processing firm ADP's November report showing 32,000 job losses, sharply missing the 40,000 gain expected by economists polled by D ...

Company Overview - Guess (NYSE:GES) is a prominent brand in the fashion industry, focusing on clothing and accessories within the Consumer Discretionary sector, currently ranked 12 in the Zacks Sector Rank based on earnings estimates and revisions [1] Stock Performance - The current stock price of Guess is $17.07, reflecting a slight increase of $0.01 or about 0.06%. The stock has experienced a low of $17.03 and a high of $17.08 today, with a yearly high of $17.43 and a low of $8.48, indicating volatility [3][5] - Guess has a market capitalization of approximately $890.2 million, calculated by multiplying the current stock price by the total number of outstanding shares. Today's trading volume is 163,250 shares, showing investor interest and activity [4][5] Analyst Ratings - UBS has updated its rating for Guess to Neutral, advising investors to hold the stock, while the Zacks Rank system assigns Guess a rank of 2 (Buy), suggesting an expectation for the company to outperform the market in the short term, over the next one to three months [2][5]

Group 1 - Guess (GES) is currently outperforming its peers in the Consumer Discretionary sector, with a year-to-date gain of approximately 21.3% compared to the sector average of 0.5% [4] - The Zacks Rank for Guess is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 3.4% increase in the consensus estimate for full-year earnings over the past quarter [3] - Within the Textile - Apparel industry, which has seen an average loss of 16.2% this year, Guess is performing significantly better [5] Group 2 - The Consumer Discretionary group includes 265 companies, with Guess ranked 12 in the Zacks Sector Rank [2] - Another notable performer in the Consumer Discretionary sector is Naspers Ltd. (NPSNY), which has gained 50.3% year-to-date, while its industry, Cable Television, has declined by 33.4% [4][6] - The Textile - Apparel industry, to which Guess belongs, is currently ranked 69 in the Zacks Industry Rank [5]

Core Viewpoint - Guess (GES) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements [4][6]. - Rising earnings estimates for Guess suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10]. Earnings Estimate Revisions for Guess - For the fiscal year ending January 2026, Guess is expected to earn $1.65 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 3.4% over the past three months [8].

Core Insights - Momentum investing contrasts with the traditional "buy low and sell high" strategy, focusing instead on "buying high and selling higher" to capitalize on fast-moving stocks [1] - Identifying the right entry point for momentum stocks can be challenging, as they may lose momentum if future growth does not justify their high valuations [1] Group 1: Momentum Investing Strategy - Investing in bargain stocks that have recently shown price momentum can be a safer approach [2] - The Zacks Momentum Style Score is effective in identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced fast-moving stocks [2] Group 2: Case Study - Guess (GES) - Guess (GES) has shown a price increase of 0.1% over the past four weeks, indicating growing investor interest [3] - GES has gained 1.4% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [4] - The stock has a beta of 1.28, suggesting it moves 28% higher than the market in either direction [4] Group 3: Valuation and Earnings Estimates - GES has a Momentum Score of A, indicating a favorable time to invest based on momentum [5] - An upward trend in earnings estimate revisions has contributed to GES earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [6] - GES is trading at a Price-to-Sales ratio of 0.28, meaning investors pay 28 cents for each dollar of sales, indicating a reasonable valuation [6] Group 4: Additional Opportunities - GES is not the only stock that meets the 'Fast-Paced Momentum at a Bargain' criteria; there are several other stocks worth considering [7] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [8]

Core Insights - Guess?, Inc. reported third-quarter fiscal 2026 results with both revenue and earnings exceeding Zacks Consensus Estimates and showing year-over-year growth [1][11]. Financial Performance - Adjusted earnings were 35 cents per share, surpassing the Zacks Consensus Estimate of 23 cents, and increased by 3% from 34 cents in the same quarter last year [4]. - Net revenues reached $791.4 million, a 7% increase year over year, exceeding the consensus estimate of $774 million. On a constant-currency basis, revenues rose by 5% [4]. - Adjusted earnings from operations were $37 million, down 13.5% from $42.8 million in the prior year, with an adjusted operating margin of 4.7%, down from 5.8% [5]. Segment Performance - Europe segment revenues increased by 10% on a reported basis and 6% at constant currency, with retail comparable sales rising by 7% [6]. - Americas Retail segment revenues decreased by 2% in U.S. dollars, with retail comparable sales declining by 3% [7]. - Americas Wholesale revenues surged by 28% on a reported basis and 26% at constant currency, although the operating margin decreased to 22.8% [8]. - Asia revenues declined by 8% on a reported basis and 6% at constant currency, with retail comparable sales falling by 5% [9]. Financial Health - The company had cash and cash equivalents of $154.2 million and long-term debt of approximately $299.5 million [12]. - Free cash flow for the nine months ended Nov. 1, 2025, was negative $103.3 million [12]. - A quarterly dividend of 22.5 cents per share was declared, payable on Dec. 26, 2025 [12].

Core Insights - Guess (GES) reported revenue of $791.43 million for the quarter ended October 2025, marking a year-over-year increase of 7.2% and an EPS of $0.35, up from $0.34 a year ago, exceeding Zacks Consensus Estimate of $774 million by 2.25% and delivering an EPS surprise of 52.17% compared to the consensus estimate of $0.23 [1] Revenue Breakdown - Net revenue from Americas Retail was $170.04 million, slightly below the average estimate of $173.61 million, reflecting a year-over-year decline of 1.6% [4] - Net revenue from Americas Wholesale reached $126.15 million, surpassing the estimated $103.39 million, showing a significant year-over-year increase of 27.6% [4] - Net revenue from Asia was $60.07 million, below the average estimate of $63.72 million, representing a year-over-year decrease of 8.3% [4] - Net revenue from Europe amounted to $404.06 million, exceeding the estimated $391.4 million, with a year-over-year growth of 9.7% [4] - Net revenue from Licensing was $31.11 million, falling short of the estimated $35 million, indicating a year-over-year decline of 5.8% [4] Stock Performance - Shares of Guess have returned -0.4% over the past month, compared to a -1.2% change in the Zacks S&P 500 composite, with the stock currently holding a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Guess (GES) reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing a slight increase from $0.34 per share a year ago, resulting in an earnings surprise of +52.17% [1] - The company achieved revenues of $791.43 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.25% and increasing from $738.52 million year-over-year [2] - Guess shares have increased approximately 20.3% year-to-date, outperforming the S&P 500's gain of 14% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.53 on revenues of $1.01 billion, and for the current fiscal year, it is $1.60 on revenues of $3.2 billion [7] - The estimate revisions trend for Guess was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Textile - Apparel industry, to which Guess belongs, is currently ranked in the top 33% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Duluth Holdings (DLTH), is expected to report a quarterly loss of $0.56 per share, reflecting a year-over-year decline of -36.6% [9]

Financial Performance - Total net revenue for Q3 FY2026 increased 7% to $791 million from $738.5 million in the same prior-year quarter, with a 5% increase in constant currency[8]. - GAAP net earnings for Q3 FY2026 were $25.6 million, compared to a GAAP net loss of $23.4 million for the same prior-year quarter[5]. - Adjusted net earnings for Q3 FY2026 were $19.0 million, an 8% increase from $17.7 million for the same prior-year quarter, with adjusted diluted EPS increasing 3% to $0.35[7]. - For the nine months ended November 1, 2025, total net revenue increased 7% to $2.21 billion from $2.06 billion in the same prior-year period[16]. - Net revenue for the nine months ended November 1, 2025, was $2.21 billion, up 7.2% from $2.06 billion in the prior year[38]. - Total net revenue for the three months ended November 1, 2025, was $791,427, a 7% increase from $738,518 in the same period last year[47]. Margins and Expenses - GAAP operating margin for Q3 FY2026 decreased to 2.9%, down from 5.7% in the same prior-year quarter, primarily due to higher expenses[9]. - Adjusted operating margin for the nine months ended November 1, 2025 decreased to 1.8%, down from 3.5% in the same prior-year period[20]. - Selling, general and administrative expenses increased to $904.15 million, representing 40.8% of net revenue for the nine months ended November 1, 2025[38]. - Total selling, general and administrative expenses for the three months ended November 1, 2025, were $309,026, an increase of 10.6% from $279,389 in the same period last year[42]. - Corporate overhead increased by 39% to $(50,946) for the three months ended November 1, 2025[47]. Acquisitions and Transactions - The proposed take-private transaction with Authentic Brands Group involves Authentic acquiring 51% of the company's intellectual property, with shareholders receiving $16.75 per share in cash[2]. - The proposed transaction is expected to close in Q4 FY2026, pending regulatory approvals[3]. - The Company completed the acquisition of rag & bone on April 2, 2024, acquiring all operating assets and assuming related liabilities, with a joint venture for intellectual property[24]. - The company incurred $5,607 in proposed transaction costs for the three months ended Nov 1, 2025, compared to no costs in the same period last year[42]. - The company has incurred transaction costs related to the acquisition of rag & bone, which are excluded from adjusted results[60]. Cash Flow and Assets - Free cash flows are calculated as cash flows from operating activities minus purchases of property and equipment, providing insight into cash generation for discretionary items[30]. - Cash and cash equivalents at the end of the period were $155,056, compared to $142,322 at the end of the previous year[53]. - The total assets of the company as of November 1, 2025, amounted to $3,006,496, up from $2,794,661 a year earlier[51]. - Free cash flow for the nine months ended November 1, 2025, was $(103,308), an improvement from $(130,391) in the previous year[55]. Store Operations - As of November 1, 2025, the Company operated 1,058 retail stores directly and an additional 507 stores through partners and distributors across approximately 100 countries[31]. - As of November 1, 2025, the total number of stores operated by the company is 1,565, with 1,058 directly operated and 507 partner-operated stores[57]. - The Americas region has a total of 430 stores, with 414 directly operated and 16 partner-operated[57]. - In Europe and the Middle East, there are 781 total stores, with 587 directly operated and 194 partner-operated[57]. - The Asia and Pacific region has 354 total stores, with 57 directly operated and 297 partner-operated[57]. - The company is undergoing restructuring, including planned exits of certain retail stores in North America and Greater China[60]. Risks and Forward-Looking Statements - Forward-looking statements regarding the Proposed Transaction highlight potential risks, including regulatory approvals and business relationship impacts[32][33]. - The Company is subject to various risks, including changes in tax policy, economic conditions, and cybersecurity threats, which may affect future performance[34]. Earnings and Tax Rates - The effective income tax rate for the three months ended November 1, 2025, was 23.4%, compared to an effective tax rate of (128.9%) in the same period last year[38]. - Adjusted effective income tax rate for the nine months ended November 1, 2025, was 49.3%, compared to 35.7% in the prior year[42]. Other Financial Metrics - Other income for Q3 FY2026 was $21.2 million, compared to other expense of $45.8 million for the same prior-year quarter, primarily due to a net unrealized gain of $17.9 million[13]. - Product sales for the three months ended November 1, 2025, reached $760.32 million, a 7.8% increase from $705.51 million in the same period last year[38]. - Gross profit margin decreased to 41.7% for the nine months ended November 1, 2025, compared to 43.1% in the same period last year[38]. - Earnings from operations decreased by 45% to $23,183 compared to $42,276 in the prior year[47]. - The Americas Wholesale segment experienced a significant growth of 28% in net revenue, reaching $126,147[47]. - The Americas Retail segment reported a 2% decrease in net revenue, totaling $170,037[47].