Guess?’s loss figure for Q1 reflect a net unrealised loss of $4.3m, in stark contrast to a net unrealised gain of $38.5m reported in the same quarter of the prior year.
The company’s GAAP diluted net loss per share stood at $0.65 for the first quarter of fiscal 2026, a downturn from the GAAP diluted net earnings per share (EPS) of $0.23 reported in the equivalent quarter of the previous year.
Go deeper with GlobalData
Guess? also disclosed an adjusted net loss of $22.3m for the first quarter of fiscal 2026, marking a 61% rise from an adjusted net loss of $13.8m in the same quarter last year.
“We had a very good first quarter. And this was on top of a year or the ten months that we own the business, where we exceeded our expectations. We had, I think, very high expectations for this year coming in, and we were able to really do better than that in the first quarter,” Guess? chief executive officer Carlos Alberini said during an earnings conference call.
Guess? key metrics in Q1 FY26
Revenue from Europe saw an 8% rise, although retail comparable sales, inclusive of e-commerce, declined by 4%.
In the Americas retail sector, revenues climbed by 9% and 12% in constant currency, despite retail comparable sales falling by 11% in US dollars.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataAsia faced a downturn with revenues decreasing by 20% in US dollars and 16% in constant currency; retail comparable sales also fell by 24% in US dollars.
GAAP loss from operations for Guess? surged by 67.5% to $33.31m in Q1 FY26, up from $19.89m recorded during the same period last year.
GAAP operating margin for the first quarter dropped by 1.7% to negative 5.1%, compared to negative 3.4% for the corresponding quarter of the previous year. This was largely due to an unfavourable business mix, increased asset impairment charges, and negative currency impact, which were partially mitigated by newly acquired businesses, noted the company.
Guess? outlook for second quarter and fiscal 2026
In the second fiscal quarter, Guess? anticipates consolidated net revenue growth ranging between 2.9% to 4.7%.
Projected GAAP earnings from operations are expected to lie between $19m to $26m, with EPS estimated to range from $0.11 to $0.18.
The anticipated GAAP operating margin is projected to be between 2.5% to 3.3%.
For the full fiscal year, Guess? forecasts revenue growth between 5.5% to 7.4%, with GAAP earnings from operations predicted to be between $124m to $148m.
Diluted EPS for the full year is expected to range from $0.87 to $1.11.
“As we look into the rest of the year, we continue to expect solid revenue growth driven by the expansion of rag & bone, the ongoing development of Guess Jeans and the new joint venture with the Chalhoub Group in the Middle East. On the cost side, we have taken proactive measures to manage tariff exposure and protect margins, limiting this year’s net impact to less than $10m based on current conditions, which we have incorporated into our outlook. We remain focused on executing our strategic initiatives to increase our direct-to-consumer sales productivity and improve our profitability through business and portfolio optimisation,” Alberini concluded.
In March this year, WHP Global, a partner of Guess? on the Rag & Bone acquisition, submitted a proposal to acquire Guess? for $13.00 per share in cash the outstanding shares of Guess?.
