Guess? Q3 Earnings Beat Estimates, Revenues Increase 7% Y/Y

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].