Guess? Stocks Fall on Plans to Shake-Up Operations in China and North America

Key Takeaways

• Guess? Guess?
• The fashion clothing and accessories maker's outlook was below analysts' estimates.
• Guess? The company posted a better-than-expected quarter profit and sales.

Guess? The shares of (GES) fell in early trading after the fashion clothing and accessory maker announced lower-than expected guidance, as it planned to shake-up operations in China and North America.

The company expects adjusted earnings per share (EPS), for the full fiscal year 2026, to range from $1.32 to $2.76. Revenue is expected to increase by 3.9% to 6.2%. Visible Alpha’s analysts expected revenue to increase 8.3% and adjusted earnings per share (EPS) of $1.97.

Guess? CEO Carlos Alberini said that Guess! will be focusing "on increasing direct-to-consumer sales productivity globally and improving profitability through business and portfolio optimization." To do that, it will end its direct operations in Greater China, which will instead be "directly developed and managed by a local, highly experienced partner."

In addition, Alberini said that in North America the company will "streamline our Guess full price store portfolio by exiting non-strategic, unprofitable locations, and to reduce costs by consolidating some of our infrastructure supporting this business."

Q4 Results Top Estimates

The news was offset by strong results for the fourth quarter of fiscal 2025. The adjusted EPS was $1.48, and revenue increased 5% to $932.33 million. Both exceeded Visible Alpha’s forecasts. 

Guess? Alberto Toni has been appointed as CFO.

Shares of Guess? The shares of Guess?