Q3 2025 Guess? Inc Earnings Call Transcript
Key Points
- Guess? Inc (GES) reported a 13% increase in revenues for the third quarter, reaching $739 million, driven primarily by the addition of rag & bone.
- The company delivered earnings at the high end of expectations due to improved expense management.
- European wholesale business showed a mid-single-digit sales increase, with some earlier-than-planned deliveries.
- The company experienced strong performance in the Americas wholesale business, with sales increasing by approximately 25%.
- Guess? Inc (GES) managed expenses well during the quarter, with significant investments in marketing and advertising to build brand awareness.
- Revenue growth was slightly lower than expected due to a stronger US dollar.
- The core Guess business in Asia and America's retail business did not meet expectations, with store traffic under pressure.
- The company faced challenges in the European retail segment, performing at the lower end of expectations.
- Freight costs and currency fluctuations negatively impacted the company's financial outlook.
- Adjusted operating margin declined by 310 basis points to 5.8% due to lower gross margin and higher SG&A expenses.
Good day, everyone, and welcome to the Guess? third-quarter fiscal 2025 earnings conference call. I would like to turn the call over to Fabrice Benarouche, Senior Vice President of Finance, Investor Relations and Chief Accounting Officer. Sir, you may begin.
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Thank you, operator. Good afternoon, everyone, and thank you for joining us today. On the call today with me are Carlos Alberini, Chief Executive Officer; and Dennis Secor, Interim Chief Financial Officer.
During today's call, the company will be making forward-looking statements, including comments regarding future plans, strategic initiatives, capital allocation, and short- and long-term outlooks. The company's actual results may differ materially from current expectations based on risk factors included in today's press release and the company's quarterly and annual reports filed with the SEC.
Comments will also reference certain non-GAAP or
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