Guess? (GES) Q4 2025 earnings summary

Executive summary

• Q4 revenue grew 5% to $932 million (9% in constant currency), with full-year revenue up 8% to $3 billion, driven by the Rag & Bone acquisition and core business growth; all segments grew except Asia.

• Completed the first brand acquisition (Rag & Bone), launched Guess? Jeans globally, and expanded distribution in India and the Middle East.

• Renewed and expanded key licensing agreements, internalized previously licensed businesses, and sold a US warehousing facility to free up capital.

• Navigated external challenges including the Red Sea crisis, inflation, currency headwinds, and persistent retail traffic declines.

Financial highlights

• Q4 adjusted operating profit was $107 million with an adjusted operating margin of 11.4%; adjusted EPS was $1.48 (down 26% YoY).

• Full-year adjusted operating profit reached $180 million, with a 6% margin and adjusted EPS of $1.96 (down 38% YoY).

• Q4 gross margin was 44.1%, down 130 basis points year-over-year due to higher costs and currency impacts; FY25 gross margin was 43.4%.

• Adjusted SG&A for Q4 increased 11% to $305 million, mainly from Rag & Bone integration and higher marketing spend.

• Ended the year with $188 million in cash and $588 million in available liquidity.

Outlook and guidance

• Fiscal 2026 revenue growth expected between 3.9%-6.2%, adjusted operating margin of 4.5%-5.4%, and adjusted EPS of $1.32-$1.76.

• Q1 revenue growth projected at 5.8%-7.5%, with an expected operating loss margin of 5.6%-4.7%.

• Guidance excludes impact from newly announced US tariffs; 75% of business is outside the US, mitigating tariff risk.

• Free cash flow for the year expected to be about $55 million; quarterly dividend of $0.30 per share approved.

• $200 million share repurchase program authorized; $60.3 million in shares repurchased in FY25.