Guess’s financial results for the first quarter draw a mixed picture. Strategic acquisitions and wholesalers ensured growth, but at the same time the losses rose. Despite a net loss, sales exceeded expectations. This is primarily due to the successful integration of RAG & Bone and the strong development of the wholesale business in Europe and North and South America.
Total net sales rose by nine percent in the first quarter to $ 647.8 million (596.8 million euros) or twelve percent in constant currency.
Carlos Alberini, Chief Executive Officer (CEO) from Guess, the sales growth reflects “the successful integration of RAG & Bone and the continued dynamics in our wholesale business in Europe and America,” said Guess CEO Carlos Alberini. He also emphasized disciplined cost management as a factor for reducing the quarterly loss.
Most important results of Guess in the first quarter
Guess recorded a net loss of $ 32.9 million in the first quarter. In the comparison quarter of the previous year, the company had achieved a net profit of $ 13 million. Adjusted, net loss rose by 61 percent to $ 22.3 million.
Regarded regionally, sales in Europe increased by eight percent (nine percent in constant currency). However, comparable retail sales in the region declined by four percent (three percent in constant currency). In Nod and South America, retail sales increased by nine percent (twelve percent in constant currency). However, the comparable retail sales in this segment decreased by eleven percent (nine percent in constant currency). Wholesale sales in Nod and South America recorded strong growth of 63 percent (70 percent in constant currency). However, sales in Asia fell by 20 percent (16 percent in constant currency). The comparable retail sales decreased by 24 percent (20 percent in constant currency). The license revenue also decreased by 14 percent.
For the second quarter of the 2026 financial year, Guess predicts an increase in the consolidated net turnover between 2.9 and 4.7 percent. The adjusted operational margin is expected to be between 2.5 and 3.3 percent. This corresponds to a forecast-made result from the operational business between $ 19 and $ 26 million.
For the entire 2026 financial year, the company expects consolidated net sales growth of 5.5 to 7.4 percent, an operational margin between 3.9 and 4.6 percent and adjusted operational margin between 4.4 and 5.1 percent. The result from the operational business for the year as a whole is forecast at $ 124 to $ 148 million and the adjusted result from the operational business to $ 139 to $ 163 million.
Guess Plant expansion from RAG & Bone into new markets
Paul Marciano, co -founder and Chief Creative Officer from Guess, emphasized the strength of the company’s diversified business model. This includes 25 product categories, several global markets and various consumers: internal channels.
The company plans to use this extensive platform to promote future sales growth. This includes the expansion of RAG & Bone into new markets and product categories, the expansion of the distribution of the Guess Athleisure line and the increase in the market share of the Guess Jeans brand among younger consumers.
Alberini expects continued growth in sales for the rest of the 2026 financial year. This is powered by the expansion of RAG & Bone, the further development of Guess Jeans and a new joint venture with the Chalhoub Group in the Middle East.
Proactive measures were taken to cope with the burden of tariffs. The aim is to limit the net effects to less than $ 10 million for the year.
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