Executive Summary
Guess Inc reported QQ2 2026 revenue of $772.9 million, up 5.5% versus the prior-year quarter and up 19.3% quarter-over-quarter. The company delivered a robust gross margin of 42.5%, with gross profit of $328.8 million, and generated positive operating earnings of $18.1 million and net income of $6.2 million. Diluted earnings per share stood at $0.26, while basic EPS was $0.12, reflecting a split between operating performance and the company’s capital structure. Free cash flow was solid at $96.8 million, supported by $74.9 million of operating cash flow and modest capital expenditures of $21.9 million, leaving Guess with ~$()1.20 billion of net debt on a consolidated basis and cash balance of approximately $189.6 million at period-end.
Key Performance Indicators
QoQ: 154.30% | YoY:-62.14%
QoQ: 118.96% | YoY:158.87%
QoQ: 118.46% | YoY:157.14%
Key Insights
Revenue: $772.9M, YoY +5.51%, QoQ +19.32%; Gross Profit: $328.8M, YoY +2.76%; Gross Margin: 42.54%; Operating Income: $18.1M, YoY -62.14%, QoQ +154.30%; Net Income: $6.24M, YoY +158.87%, QoQ +118.96%; EPS (basic/diluted): $0.12 / $0.26, YoY +157.14% / +118.46%; EBITDA: $23.17M; EBITDA Margin: 2.99%; Free Cash Flow: $96.82M; Operating Cash Flow: $74.91M; Capex: $21.91M; Cash at End: $190.45M; Net Debt: $1.20B; Total Debt: $1.61B; Total Assets: $2.98B; Stockholders’ Equity: $1.59B; Inventory: $6...
Financial Highlights
Revenue: $772.9M, YoY +5.51%, QoQ +19.32%; Gross Profit: $328.8M, YoY +2.76%; Gross Margin: 42.54%; Operating Income: $18.1M, YoY -62.14%, QoQ +154.30%; Net Income: $6.24M, YoY +158.87%, QoQ +118.96%; EPS (basic/diluted): $0.12 / $0.26, YoY +157.14% / +118.46%; EBITDA: $23.17M; EBITDA Margin: 2.99%; Free Cash Flow: $96.82M; Operating Cash Flow: $74.91M; Capex: $21.91M; Cash at End: $190.45M; Net Debt: $1.20B; Total Debt: $1.61B; Total Assets: $2.98B; Stockholders’ Equity: $1.59B; Inventory: $668.38M; Working Capital drivers include favorable change in working capital of $75.18M versus prior year.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
772.94M |
5.51% |
19.32% |
| Gross Profit |
328.77M |
2.76% |
27.20% |
| Operating Income |
18.09M |
-62.14% |
154.30% |
| Net Income |
6.24M |
158.87% |
118.96% |
| EPS |
0.12 |
157.14% |
118.46% |
Management Commentary
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Forward Guidance
No formal forward guidance was disclosed in the provided data. Based on QQ2 2026 outcomes, investors should monitor: (1) Direct-to-Consumer (DTC) growth and mix shift (DTC margin improvement potential), (2) ongoing inventory discipline and supply-chain costs, (3) international exposure and FX headwinds, (4) leverage and debt service capacity given the sizable net debt position, and (5) seasonality and promotional activity that could impact QoQ momentum. Management commentary, when available, should shed light on target long-term margin expansion, capex cadence, and potential licensing pipeline.