For the second quarter of the 2026 financial year, Guess Inc. reported a sales increase of six percent to $ 772.9 million (708.77 million euros). In the same period last year, sales had $ 732.6 million (672.28 million euros). The growth is primarily due to a strong performance in Europe and North America and takes place against the background of a planned privatization of the company.
The income of the company based in Los Angeles exceeded expectations in the second quarter. Drivers were above all the higher comparable branch sales in European business and a persistent improvement in the US retail segment. In the event of constant exchange rates, net sales increased by three percent.
Planned privatization
On August 20, 2025, Guess announced a final agreement with the Authentic Brands Group (Authentic) for planned privatization. As part of the agreement, certain existing shareholders will work with Authentic to acquire the intellectual property and resources of the company.
The transaction requires the approval of the shareholders: inside and is expected to be completed in the fourth quarter of the 2026 financial year. After that, Guess’s ordinary shares are no longer traded on a public stock exchange. The shareholders: Inside, $ 16.75 (15.37 euros) per share receives in cash. Due to the upcoming transaction, the company has suspended its practice to provide and update financial forecasts for the 2026 financial year.
European segment drives performance ahead
Europe turned out to be a central growth driver. The income rose by $ 14 percent and nine percent with constant exchange rates. The comparable retail sales, including e-commerce, increased by eleven percent in US dollars.
In contrast, retail sales in the America region, which include North and South America, fell by one percent, while the comparable sales decreased by five percent. Wholesale sales in Americas fell by eleven percent, while sales in Asia increased by three percent. The license revenue decreased by ten percent in both US dollars and constant exchange rates.
Profitability and margins declined
Despite the growth of sales, the result from the operational business according to the US GAAP, the generally recognized accounting principles of the United States, fell by 62.1 percent to $ 18.1 million (EUR 16.62 million) for the quarter; Compared to $ 47.8 million (43.88 million euros) in the previous year. The operative margin according to US GAAP for the quarter fell to 2.3 percent; Compared to 6.5 percent in the same period last year.
The decline in the operational margin was attributed to higher expenses. This includes branch costs and advertising, costs in connection with the planned transaction, an unfavorable business mix and higher discounts.
The net profit for the quarter was $ 6.2 million (5.69 million euros). This is a significant improvement compared to a net loss of $ 10.6 million (9.72 million euros) in the same period last year. The diluted net profit per share according to the US US GAAP was twelve cents (eleven cents).
In his statement, Alberini said that the company had managed margins and expenses well. Coupled with sales growth, this led to a profit per share according to US GAAP as part of expectations.
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