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Benjamin Fitzgerald Published
November 23, 2025
Guess Inc. announced on Tuesday both its revenue and earnings dipped during the third quarter, with its U.S. and Europe sale dropping, partially offset by its operations in Asia and its licensing segment.
The Los Angeles-based company said total net revenue for the third quarter ending October 29 decreased 2% to $633.4 million. In constant currency, net revenue increased by 10%.
The fashion label's Americas retail revenues dipped 2% in U.S. dollars and 1% in constant currency, while retail comp sales, including e-commerce, decreased 1% in U.S. dollars, and Americas wholesale revenues plunged 10% in U.S. dollars.
Internationally, Europe revenues decreased 2% in U.S. dollars but increased 17% in constant currency. Retail comp sales, including e-commerce, decreased 8% in U.S. dollars and increased 9% in constant currency.
Asia revenues increased 10% in U.S. dollars and 28% in constant currency, while retail comp sales, including e-commerce, decreased 2% in U.S. dollars and increased 13% in constant currency.
Finally, licensing revenues increased 4%, said the company.
Hit by unfavorable currency exchange and lower full price selling, net earnings fell 27% to $21.8 million, from $29.9 million for the same prior-year quarter.
“We are pleased with our third quarter financial results, which exceeded our revenue and operating profit expectations in a challenging retail environment," said Carlos Alberini, chief executive officer.
"Our revenues decreased by almost 2% in U.S. dollars but grew 10% in constant currency, driven primarily by the strength of our business in Europe. For the period, we managed the business well and delivered an 8.6% operating margin and $55 million in operating profit. Lower performance-based compensation helped us partially offset the gross margin pressure we experienced as a result of the adverse currency impact associated with the strong U.S. dollar and lower full price selling.”
For the fourth quarter of fiscal 2025, Guess said it expects revenues to be down around 3.5% in U.S. dollars (up 3.5% in constant currency). For the full fiscal, it expects revenues to be up around 2% in U.S. dollars (10.5% in constant currency).