Guess? Sets the Stage for Q3 Earnings: Things to Watch for GES Stock

Core Insights - Guess?, Inc. (GES) is expected to report a revenue increase of 4.8% year-over-year, with the Zacks Consensus Estimate for revenues at $774 million for the third quarter of fiscal 2026 [1] - The earnings consensus remains unchanged at 23 cents per share, indicating a decline of 32.4% from the previous year [2] - GES has a trailing four-quarter earnings surprise average of 26.7% [2] Revenue Drivers - The anticipated revenue growth for GES is attributed to an expanding brand portfolio, strong international performance, and the integration of recent acquisitions [3] - Strategic initiatives, including the elevation of the core Guess? brand and diversification through rag & bone, are expected to support continued sales growth [3] Profitability Challenges - Despite expected revenue growth, GES may face year-over-year pressure on its bottom line due to margin headwinds, including higher store and advertising expenses, increased markdowns, and weaker profitability in the Americas Retail and Wholesale segments [4] - Cost inflation and integration-related expenses from rag & bone could further constrain profitability [4] Regional Performance - Europe and Asia are strong profit contributors for GES, but softness in the Americas and declining licensing revenues may offset some of that strength, potentially leading to a year-over-year decline in the bottom line [5] Earnings Prediction - Current analysis does not predict an earnings beat for GES, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [6]