company_name: GUESS? (GES) ticker: GES quarter: Q2 Financial Results Summary

# Guess?, Inc. (GES) Q2 2026 Financial Results Summary

**Release Date:** August 27, 2025

Guess?, Inc. (NYSE: GES) reported its financial results for the second quarter of fiscal year 2026, ending August 2, 2025. Key highlights from the report include:

### Financial Performance
– **Total Net Revenue:** Increased to **$772.9 million**, reflecting a **6% increase** in U.S. dollars and a **3% increase** in constant currency compared to the same period last year.
– **GAAP Net Earnings:** Reported at **$6.2 million**, compared to a GAAP net loss of **$10.6 million** a year ago.
– **GAAP EPS:** Achieved **$0.12**, contrasting with a GAAP diluted net loss of **$0.28** in the previous year.
– **Adjusted Net Earnings:** Registered at **$13.8 million**, down **40%** from **$23.0 million** year-on-year.
– **Adjusted EPS:** Decreased **38%** to **$0.26** from **$0.42** in the same prior-year quarter.

### Revenue Breakdown by Segment
– **Europe:**
– Revenue rose **14%** in U.S. dollars and **9%** in constant currency.
– Retail comparable sales up **11%** in U.S. dollars and **5%** in constant currency.

– **Americas Retail:**
– Revenue down **1%** in both U.S. dollars and constant currency.
– Retail comparable sales decreased **5%** in both U.S. dollars and constant currency.

– **Americas Wholesale:**
– Declined by **11%** in U.S. dollars and **10%** in constant currency.

– **Asia:**
– Revenue increased **3%** in U.S. dollars and **2%** in constant currency.
– Retail comparable sales decreased **2%** in both U.S. dollars and constant currency.

– **Licensing Revenue:**
– Decreased by **10%** in both U.S. dollars and constant currency.

### Earnings and Margins
– **Earnings from Operations:**
– GAAP earnings from operations decreased **62.1%** to **$18.1 million** from **$47.8 million** year-on-year.
– Adjusted earnings from operations fell **25%** to **$28.5 million** from **$37.9 million**.

– **Operating Margin:**
– GAAP operating margin decreased to **2.3%**, down **4.2%** from **6.5%** in the prior year.
– Adjusted operating margin decreased to **3.7%**, down **1.5%** from **5.2%** in the previous year.

### Transaction Update
– **Proposed Take-Private Transaction:** On August 20, 2025, Guess? announced a definitive agreement for a partnership with Authentic Brands Group, offering other shareholders **$16.75 per share** in cash, pending approval expected to be completed in Q4 of fiscal year 2026.

### Dividends
– The Board of Directors approved a quarterly cash dividend of **$0.225** per share, payable on **September 26, 2025**, to shareholders of record as of **September 10, 2025**.

### Non-GAAP Adjustments
– The company provided non-GAAP financial measures, reflecting adjustments for:
– Professional service and legal fees
– Proposed transaction costs related to the merger discussions
– Acquisitional costs related to rag & bone
– Separation and restructuring charges

The measures are set out to better represent the underlying performance of the business without the impact of these unique costs.

### Conclusion
In the second quarter of fiscal 2026, Guess?, Inc. encountered varied financial dynamics across its segments, showing a mix of revenue growth in Europe while experiencing declines in other markets. In light of the potential take-private transaction, the company has suspended its practice of providing regular financial guidance for the remainder of the fiscal year, leading to a significant strategic shift in the company’s outlook.

### Condensed Consolidated Statements of Income
(in thousands)

—

### Selected Condensed Consolidated Balance Sheet Data
(in thousands)