Guess? (NYSE: $GES), a contemporary clothing brand, released its fourth quarter fiscal 2025 results on Thursday, April 4, 2025, after markets closed. Here is a deep dive into the results.
Guess? Q425 Results
For the fourth quarter of fiscal 2025, Guess? reported revenue of $932.3 million, beating estimates of $906.2 million by 2.9% and up 4.6% YoY. It reported an adjusted EPS of $1.48, beating estimates of $1.38.
Segment Performance
Guess? saw European revenue rise 2%, while retail comparable sales were relatively flat. The inclusion of e-commerce sales positively impacted retail comparable sales percentage by 1%.
Americas retail revenue was up 4% YoY, while retail comparable sales, including e-commerce were down 14% YoY. The inclusion of e-commerce sales negatively impacted the retail comparable sales percentage by 1%.
Americas wholesale revenue was up 63% YoY, while Asia revenue was down 15% YoY. The inclusion of e-commerce sales negatively impacted the retail comparable sales in Asia by 2%. Licensing revenue was up 18% YoY.
Other Q4 Highlights
In Q4 Guess? reported an 18.2% decline in adjusted earnings from operations to $106.5 million, while the adjusted operating margin fell to 11.4% from 14.6% the previous year, primarily due to higher ad expenses, higher expenses, and store costs.
The Europe segment saw a decline in operating margin to 15.4% from 18% the previous year. Guess? also saw the Americas Retail segment saw operating margin decline to 8.9% from 15% the previous year.
Its Americas Wholesale segment saw the operating margin decline to 12.8% from 28.5% the previous year, while the Asia segment saw the operating margin decline to 1.3% in Q4 compared to 4.8% the previous year. Guess? reported that the Licensing segment’s operating margin rose to 94.8% from 92.7% the previous year, mainly driven by lower expenses.
Full-Year Highlights
Full-year revenue rose 8% YoY to $3 billion, with revenue growth reported in all segments. Guess? reported a 29.5% YoY decline in full-year earnings from operations to $179.5 million, while full-year adjusted operating margin fell to 6% from 9.2% in fiscal 2024. It reported a decline in the operating margin across all segments for the full year.
Dividends And Share Buyback
The board approved a dividend of $0.30 for Q4’25. Guess? bought back $60.3 million worth of shares in fiscal 2025, leaving a capacity of $139.8 million under the $200 million share buyback program approved on March 25, 2024.
Guess? Outlook
The company expects revenue of $631.3 million in Q126 at the midpoint, beating estimates of $626 million by 0.8% at the midpoint. It expects an adjusted EPS of $1.54 at the midpoint, below estimates of $2.07.
Guess? (GES) Market Performance
Following the revenue and earnings beat, GES shares soared 1.39% during the early morning trading session on April 4, 2025 to $10.18 per share as of 9:53 AM EDT. However, GES is down 27.60% YTD, and down 48.74% in the past six months. The stock has dipped 67.14% in the past 12 months.
Its current price is below both the 50 and 200-day moving averages of $11.67, and $16.96. Short sellers hold 25.99% of the float, and 18.32% of the shares outstanding.
Analysts give GES a hold rating, forecasting an average price of $13, which is a $28.33% upside based on the most recent price. They offer a narrow range of forecasts, with a high of $14, and a low of $12.
Should You Add GES To Your Portfolio In 2025?
During the earnings call, management said that they would focus on optimizing their business and portfolio, which could unlock around $30M in operating profit by fiscal 2027. They also plan to focus on growing direct-to-consumer sales productivity, while also improving profitability via business optimization.
While the outlook missed estimates, the company still expects growth in the next quarter. That signals that Guess? is still worth adding to your watchlist for a potential turnaround in the medium term.
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