Q4 2025 Guess? Inc Earnings Call Transcript
Key Points
- Guess? Inc (GES) reported a 5% increase in Q4 revenues, reaching $932 million, with a significant contribution from the acquisition of rag & bone.
- The company's European Wholesale business showed strong performance with mid-single-digit growth despite currency headwinds.
- Guess? Inc (GES) successfully launched Guess? Jeans globally, targeting a younger demographic with sustainable and affordable denim.
- The licensing business exceeded revenue expectations, growing 18% in Q4, driven by strong performance in footwear, fragrances, handbags, and eyewear.
- The company entered a joint venture with Chalhoub Group to manage its Middle East business, expected to contribute meaningfully to growth.
- The Guess? Retail business in the Americas did not meet revenue expectations, with a 14% constant currency comp decline in the US and Canadian stores and e-commerce.
- The Guess? Asia business underperformed, with revenue declines in the upper teens, particularly in South Korea and China due to challenging retail traffic.
- Total company gross margin was below expectations at 44.1%, impacted by higher margin pressure and unfavorable currency effects.
- Adjusted SG&A expenses increased by 11%, driven by the addition of rag & bone and increased marketing investments.
- The company anticipates a challenging consumer environment in fiscal 2026 due to inflationary pressures and unresolved geopolitical issues, impacting growth prospects.
Good day everyone and welcome to the Guess? fourth-quarter fiscal 2025 earnings conference call. I would like to turn a call over to Fabrice Benarouche, Senior Vice President of Finance, Investor Relations, and Chief Accounting Officer. The floor is yours.
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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' actual results that may differ materially from current expectations based on risk factors included in today's press release and the company's quarterly and annual reports signed with the SEC. Comments will also reference certain non-GAAP or
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