Guess Inc. delivered a positive Q3 2026 (calendar year 2026) despite an acute consumer environment, marking a pivotal turn from a Q3 2025 loss to a solid quarterly profit. Revenue rose 7.16% year over year to $791.4 million, supported by a stable gross margin of 42.45% (0.4245) and improving operating leverage, with operating income of $26.96 million and a pre-tax profit of $38.38 million. Net income registered $25.65 million and basic/diluted EPS of $0.50/$0.48, representing substantial YoY and QoQ increases driven by the transition from a loss in the year-ago quarter to profitability in the current quarter (YoY net income up 209.6%; QoQ up 310.9%).
Key Performance Indicators
Revenue
Increasing
791.43M
QoQ: 2.39% | YoY: 7.16%
Gross Profit
Increasing
335.98M
42.45% margin
QoQ: 2.19% | YoY: 4.38%
Operating Income
Decreasing
26.96M
QoQ: 49.04% | YoY: -36.24%
Net Income
Increasing
25.65M
QoQ: 310.89% | YoY: 209.63%
EPS
Increasing
0.50
QoQ: 316.67% | YoY: 180.65%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $791.427 million; YoY +7.16%; QoQ +2.39%.
Gross Profit: $335.982 million; Gross Margin 42.45% (0.4245); YoY +4.38%; QoQ +2.19%.
Operating Income: $26.956 million; Margin 3.40%; YoY -36.24% (pressure from prior-year operating base); QoQ +49.04%.
Net Income: $25.648 million; Net Margin 3.24%; YoY +209.63%; QoQ +310.89%.
EPS (basic/diluted): $0.50 / $0.48; YoY +180.65%; QoQ +316.67%.
EBITDA: $23.183 million; EBITDA Margin ~2.93%.
Cash Flow and Liquidity: Net cash from operating activities is $(39.456) million; capex $(60.278) million; free cash flow $(39.456) million; cash balance $155.056 million; total debt $1.439b; net debt $1.285b; current ratio 1.146; quick ratio 0.513; cash ratio 0.141.
Balance Sheet: Total assets $3.0065 billion; total liabilities $2.4401 billion; equity $1.5671 billion; working capital ~$159.4 million; inventory $692.266 million; accounts receivable $407.778 million.
Capital Allocation: Dividends paid $(32.016) million; net financing activities $30.613 million; overall net cash change $(35.391) million; capex intensity remains high for an apparel retailer transitioning to a more balanced store/DTC model.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
791.43M
7.16%
2.39%
Gross Profit
335.98M
4.38%
2.19%
Operating Income
26.96M
-36.24%
49.04%
Net Income
25.65M
209.63%
310.89%
EPS
0.50
180.65%
316.67%
Key Financial Ratios
Gross Profit Margin
Good
42.50%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
2.93%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Fair
4.70%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.24%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
2.37%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.15
Current ratio meets minimum requirements but limited cushion