Guess? (GES) Stock Forecast & Price Target

Guess?, Inc. demonstrated strong financial performance with total sales increasing by 5.5% year-over-year to $773 million, surpassing both consensus estimates and guidance expectations. The company's European segment, accounting for 57% of second-quarter sales, experienced a notable year-over-year sales growth of 14%, highlighting its resilience in the market despite previous concerns. Additionally, Guess's licensing segment showcased robust profitability, as evidenced by a significant 210 basis points increase in margin, underscoring the company's effective cost management and strategic positioning in the contemporary apparel industry.

Guess? Inc experienced a significant decline in its operating margin during the second quarter of 2025, which fell by 150 basis points to 3.7%, indicating ongoing profitability challenges. The company's Americas wholesale segment, contributing 10% of total sales, saw a 10.9% year-over-year revenue drop, coupled with a gross margin contraction of 120 basis points, further exacerbating financial pressures. Additionally, the overall retail comparable sales declined by 5% year-over-year, largely due to weakened eCommerce performance and an unfavorable business mix, raising concerns about the company's growth trajectory and operational stability.