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Guess? Sets the Stage for Q3 Earnings: Things to Watch for GES Stock

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Key Takeaways

  • GES expects Q3 revenue support from brand expansion, global strength and recent acquisitions.
  • Higher expenses, markdowns and integration costs may pressure profitability for GES.
  • Strong Europe and Asia results may be offset by softness in the Americas and licensing revenues for GES.

Guess?, Inc. (GES - Free Report) is likely to register an increase in the top line when it reports third-quarter fiscal 2026 earnings on Nov. 25. The Zacks Consensus Estimate for revenues is pegged at $774 million, implying a 4.8% increase from the prior-year quarter’s reported figure. 

The consensus mark for earnings has remained unchanged in the past 30 days at 23 cents per share, which, however, indicates a decline of 32.4% from the figure reported in the year-ago quarter. GES delivered a trailing four-quarter earnings surprise of 26.7%, on average.

Guess?, Inc. Price, Consensus and EPS Surprise

Guess?, Inc. Price, Consensus and EPS Surprise

Guess?, Inc. price-consensus-eps-surprise-chart | Guess?, Inc. Quote

Things to Know About GES’ Upcoming Results

Guess?’s third-quarter revenues are likely to have been supported by its expanding brand portfolio, strong international performance and the integration of recent acquisitions. The company’s strategic initiatives, particularly the elevation of the core Guess? brand, diversification through rag & bone and investments in direct-to-consumer channels, position it well for continued sales growth. 

Despite the expected revenue growth, Guess?’s bottom line may face year-over-year pressure due to ongoing margin headwinds. In recent quarters, the company has contended with a mix of challenges such as higher store and advertising expenses, increased markdowns, and weaker profitability in Americas Retail and Wholesale. Cost inflation, ongoing store optimization efforts and integration-related expenses related to rag & bone could further constrain profitability. 

While Europe and Asia remain robust profit contributors, softness in the Americas and declining licensing revenues may have offset some of that strength, ultimately leading to a year-over-year decline in the bottom line.

Earnings Whispers for GES

Our proven model does not conclusively predict an earnings beat for Guess? this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here. 

Guess? has a Zacks Rank #3 and an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Some Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +2.67% and a Zacks Rank of 2. The consensus mark for quarterly revenues is pegged at $1.32 billion, which indicates growth of 2.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for American Eagle’s quarterly earnings per share (EPS) is pegged at 43 cents, which implies a 10.4% decrease year over year. AEO delivered a trailing four-quarter earnings surprise of 30.3%, on average.

lululemon athletica (LULU - Free Report) currently has an Earnings ESP of +0.56% and a Zacks Rank of 3. The consensus estimate for lululemon’s quarterly revenues is pegged at $2.49 billion, which indicates 3.8% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for lululemon’s upcoming quarter’s EPS is pegged at $2.22, which implies a 22.7% decrease year over year. LULU delivered a trailing four-quarter earnings surprise of 5.3%, on average.

Victoria's Secret (VSCO - Free Report) currently has an Earnings ESP of +3.33% and a Zacks Rank of 3. The consensus estimate for quarterly revenues is pegged at $1.41 billion, which indicates 4.5% growth from the figure reported in the prior-year quarter. 

The Zacks Consensus Estimate for Victoria's Secret’s upcoming quarter’s bottom line is pegged at a loss of 60 cents per share compared with a loss of 50 cents recorded in the year-ago period. VSCO delivered a trailing four-quarter earnings surprise of 47.2%, on average.

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