Q1 2026 Guess? Inc Earnings Call Transcript
Key Points
- Guess? Inc (GES) reported Q1 operating results ahead of expectations, driven by the successful integration of rag & bone and strong performance in the European and Americas wholesale businesses.
- The acquisition of rag & bone contributed significantly to the company's top-line growth, adding 9 percentage points to constant currency growth.
- The European wholesale business posted mid-teen growth, benefiting from reliable product deliveries despite supply chain challenges.
- The Americas wholesale business delivered double-digit top-line growth, surpassing expectations.
- The company is implementing strategic initiatives to improve retail productivity, including a new customer loyalty program in Europe that has shown positive results.
- The company's gross margin declined by 200 basis points compared to the previous year, primarily due to business mix and lower royalty income.
- The Asian market, particularly Greater China, continues to face significant headwinds, with revenues declining by over 20%.
- Licensing revenue declined, with royalties from fragrances and footwear decreasing.
- The European retail stores experienced a constant currency comp decrease of 4% due to a decline in store traffic.
- The Americas Retail business faced traffic headwinds, resulting in a net 10% constant currency comp sales decline for the quarter.
Good day, everyone, and welcome to the Guess first quarter fiscal 2026 earnings conference call. (Operator Instructions) Please note that this event is being recorded. I would now like to turn the call over to Fabrice Benarouche, Senior Vice President of Finance, Investor Relations, and Chief Accounting Officer. Please proceed.
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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; Dennis Secor, Interim Chief Financial Officer; and Alberto Toni, our incoming 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
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