The US clothing company Guess Inc. was able to achieve a strong increase in sales in the third quarter of the 2025/26 financial year and return to profitability. This emerges from an interim report that was published on Tuesday evening.
Meanwhile, the takeover by fashion and media group Authentic Brands Group LLC (ABG), announced in August, continues to progress after Guess shareholders approved the transaction plans last week. As part of the takeover, which is scheduled to be completed in the fourth quarter of the current financial year, the company will withdraw from the stock market.
CEO Carlos Alberini said Guess had recently delivered “encouraging results”. He pointed to sales growth of seven percent in US dollars and five percent at constant exchange rates. “We are pleased with our performance in the third quarter, which was driven by strong performance in our Wholesale Americas and Europe businesses,” Alberini emphasized in a statement. “In our Americas retail business, we experienced encouraging improvement in comparable sales compared to the previous quarter, despite continued weakness.”
The company returns to profitability
In the third quarter, ended November 1, revenue was $791.4 million (€759.7 million). This corresponded to an increase of seven percent compared to the same period last year. Adjusted for exchange rate changes, revenue increased by five percent.
Growth in the core markets contributed to this. In Europe, the company achieved an increase of ten percent (currency-adjusted +6 percent) to 404.1 million US dollars; in North America, wholesale sales rose by 28 percent (currency-adjusted +26 percent) to 126.1 million US dollars. This was enough to more than offset losses in North American retail (-2 percent) and in Asia (-8 percent, -6 percent at constant currencies) and in global license revenue (-6 percent).
Operating profit, which was $42.3 million in the same quarter last year, fell to $23.2 million. This was due not least to one-off charges from costs for the upcoming takeover, value adjustments and restructuring expenses. Adjusted for special items, operating profit fell by 13.5 percent to $37.0 million.
The bottom line was a net profit attributable to the shareholders of 25.6 million US dollars (22.2 million euros). In the same period last year, the company had to accept a corresponding loss of $23.4 million. The big difference was largely due to a revaluation of derivatives. Adjusted for special items, the quarterly profit attributable to shareholders increased by eight percent to $19.0 million.
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