Key Takeaways GES posted a Q1 loss of $0.44 per share, narrower than the estimates but wider than last year's $0.27 loss. Q1 revenues rose 9% to $647.8M, driven by rag Guess?, Inc. (GES) reported first-quarter fiscal 2026 results, wherein the top line increased year over year and surpassed the Zacks Consensus Estimate. While the bottom line fared better than the Zacks Consensus Estimate, it declined from the prior-year reported figure. The sales growth was primarily driven by the acquisition of rag & bone ...

Guess? (GES) Q1 2026 Earnings Call June 05, 2025 04:45 PM ET Company Participants Fabrice Benarouche - Senior VP of Finance & Investor Relations and Chief Accounting OfficerCarlos Alberini - CEO & DirectorAlberto Toni - CFODennis Secor - Interim CFOMauricio Serna - Executive Director Conference Call Participants Eric Beder - CEO & Senior Research Analyst Operator Good day, everyone, and welcome to the Guess' First Quarter Fiscal twenty twenty six Earnings Conference Call. At this time, all participants are ...

Guess? (GES) Q1 2026 Earnings Call June 05, 2025 04:45 PM ET Speaker0 Good day, everyone, and welcome to the Guess' First Quarter Fiscal twenty twenty six Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. To participate, you will need to press 11 on your telephone. You will then hear a message advising your hand is raised. Please note that this event is being recorded. I would now like to turn th ...

Exhibit 99.1 GUESS?, INC. REPORTS FISCAL YEAR 2026 FIRST QUARTER RESULTS Carlos Alberini, Chief Executive Officer, commented, "We are encouraged by our first quarter performance, which came in ahead of expectations across key metrics. Revenue grew 9% in U.S. dollars and 12% in constant currency, reflecting the successful integration of rag & bone and continued momentum in our wholesale businesses across Europe and the Americas. Disciplined expense management, combined with the better than expected top-line ...

Key Takeaways GES expects Q1 sales to rise 5.8-7.5%, signaling wholesale gains in Europe and the Americas. Q1 loss is expected for GES despite revenue growth, as cost pressures and price sensitivity weigh. GES maintains a projected net currency headwind for FY26, with Q1 expected to be the most impacted.Guess?, Inc. (GES) is likely to register top-line growth when it reports first-quarter fiscal 2026 earnings on June 5. The Zacks Consensus Estimate for revenues is pegged at $631 million, implying a 6.6% i ...

Group 1 - Guess is set to announce its fiscal first-quarter earnings on May 29, 2025, with analysts forecasting earnings of -69 cents per share and revenue of $631 million, compared to -24 cents per share and $592 million in the previous year [1] - The company has faced challenges in the Americas sector, including elevated stock levels and substantial markdowns, which have adversely affected profitability [2] - Guess's acquisition of Rag & Bone is aiding revenue growth, but profit margins have sharply declined [2] Group 2 - The company is reevaluating its strategy in China, shifting from direct operations to a potential collaboration with a local firm [2] - In North America, Guess plans to shut approximately 20 underperforming stores due to ongoing reductions in foot traffic [2] - The company holds a market capitalization of $574 million, with revenue of $3.0 billion, operational profits of $173 million, and net income of $60 million over the past twelve months [2] Group 3 - Historically, Guess stock has seen an increase 63% of the time following earnings reports, with a median one-day gain of 10.3% and a maximum increase of 26% [1] - There have been 19 earnings data points logged over the last five years, with 12 positive and 7 negative one-day returns recorded [5] - Positive one-day returns occurred approximately 63% of the time, dropping to 55% when considering data from the last 3 years [5]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Guess (GES) despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Guess is expected to report a quarterly loss of $0.51 per share, reflecting an 88.9% decline year-over-year [3]. - Revenue projections stand at $630.96 million, indicating a 6.6% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 15% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for Guess is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -40.59% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [8]. - Stocks with a positive Earnings ESP and a solid Zacks Rank have historically produced a positive surprise nearly 70% of the time [8]. Historical Performance - In the last reported quarter, Guess exceeded earnings expectations with a surprise of +4.96%, reporting earnings of $1.48 per share against an expectation of $1.41 [12]. - Over the past four quarters, Guess has beaten consensus EPS estimates twice [13]. Conclusion - Guess does not appear to be a strong candidate for an earnings beat based on current estimates and rankings, but other factors should also be considered for investment decisions [16].

Financial Performance - The company reported a significant increase in revenue, with a year-over-year growth of 15% to $1.5 billion[7]. - The gross margin improved to 45%, up from 42% in the previous year, due to cost-saving initiatives[7]. - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next fiscal year[7]. User Engagement - User data showed a 20% increase in active users, reaching 5 million by the end of the quarter[7]. Product Development - New product launches contributed to a 25% increase in sales in the last quarter, with the introduction of three new product lines[7]. - The company is investing $100 million in research and development for new technologies over the next two years[7]. Market Expansion - The company is expanding its market presence, planning to enter two new international markets by Q3 2024[7]. Strategic Initiatives - A strategic acquisition was completed, enhancing the company's technology capabilities and expected to generate $50 million in annual synergies[7]. - A new sustainability initiative was launched, targeting a 30% reduction in carbon emissions by 2025[7]. - The company aims to reduce operational costs by 15% through efficiency improvements in supply chain management[7]. Risks and Challenges - The company faces various risks including currency fluctuations, which could adversely impact financial condition and results of operations[19]. - The company may be affected by economic sanctions and export controls targeting Russia, which could harm business operations[19]. - The company has experienced slowing in-person customer traffic, potentially reducing sales and increasing pressure on margins[19]. - The company’s Americas Wholesale business is highly concentrated, and a decrease in purchases from any large customer could negatively impact business[21]. - The company is subject to risks related to legal and regulatory matters, which could adversely affect business and financial performance[21]. - The company’s ability to attract and retain key personnel is critical, as failure to do so could harm business operations[21]. - The company may not fully realize expected cost savings from cost-saving initiatives, which could impact profitability[19]. - The company’s reliance on its intellectual property poses risks, as methods of protection may not be adequate[19]. - The company’s stock price may be volatile, influenced by fluctuations in quarterly performance and market conditions[21]. - The company’s co-founders own a significant percentage of common stock, which may lead to differing interests from other shareholders[21].

Core Insights - Guess?, Inc. is expanding its presence in the premium accessories market through a new five-year licensing partnership with Sequel to develop a line of premium watches under the rag & bone brand, with the first collection set to launch in fall 2025 [1][2] - This strategic move aims to leverage Sequel's expertise in high-quality fashion watches, targeting a more upscale consumer base and enhancing rag & bone's product offerings [2][3] - The company is positioned for sustained growth due to strategic acquisitions, strong performance in international markets, and an expanding product portfolio [4] Company Strategy - The partnership with Sequel combines design aesthetics, brand equity, and operational know-how, allowing Guess? to strengthen its footprint in the premium fashion accessories segment [3] - Guess? is focusing on growing direct-to-consumer channels and maintaining disciplined cost management to deliver long-term shareholder value [4] Market Environment - The company acknowledges challenges in the consumer environment, including cautious spending due to inflationary pressures and geopolitical tensions affecting global supply chains [5] - Despite these challenges, Guess? has shown resilience compared to the industry, with its shares losing 24.3% over the past three months, slightly better than the industry's 26.8% decline [6]

Core Insights - Guess?, Inc. (GES) reported fourth-quarter fiscal 2025 results with both net sales and earnings surpassing Zacks Consensus Estimates, although earnings decreased compared to the previous year [1][3] - The sales growth was primarily attributed to the acquisition of rag & bone and modest gains in GES's core operations [1][4] Financial Performance - Adjusted quarterly earnings were $1.48 per share, exceeding the consensus estimate of $1.41, but down 26.4% from $2.01 in the prior-year period [3] - Net revenues reached $932.3 million, a 4.6% year-over-year increase, surpassing the consensus mark of $899 million; on a constant-currency basis, revenues rose 9% [4] - Gross margin contracted to 44.1% from 45.4% in the year-ago quarter, while SG&A expenses as a percentage of sales increased to 32.8% from 29.1% [5] Segment Performance - Americas Retail segment revenues rose 4% in U.S. dollars, but retail comparable sales declined 14% [7] - Americas Wholesale revenues surged 63% on a reported basis, but the operating margin fell to 12.8% due to newly acquired businesses [8] - Europe segment revenues increased 2% on a reported basis, with retail comp sales remaining flat [9] - Asia revenues decreased 15% on a reported basis, with retail comp sales dropping 16% [10] Financial Health - The company ended the quarter with cash and cash equivalents of $187.7 million and long-term debt of approximately $150.7 million [11] - Free cash flow for fiscal 2025 was $29.8 million, with expectations of $55 million for fiscal 2026 [11] Future Outlook - For fiscal 2026, GES anticipates revenue growth of 3.9-6.2% and adjusted EPS of $1.32-$1.76, down from $1.96 in fiscal 2025 [13] - In the first quarter of fiscal 2026, management expects revenue growth of 5.8-7.5% but anticipates a loss of 74-65 cents per share on an adjusted basis [14]