Guess? to Post Q2 Earnings: Essential Insights Ahead of the Report

Guess?, Inc. GES is likely to register top-line growth when it reports second-quarter fiscal 2026 earnings on Aug. 27. The Zacks Consensus Estimate for revenues is pegged at $757.1 million, implying a 3.4% increase from the prior-year quarter’s reported figure.

However, Guess? is likely to register a bottom-line decline in the fiscal second quarter. The consensus mark for the bottom line has remained unchanged in the past 30 days at 14 cents per share, projecting a deterioration from 42 cents reported in the year-ago quarter. GES has a trailing four-quarter earnings surprise of 4.2%, on average.

Things to Know Ahead of GES’ Q2 Earnings

Guess?’s second-quarter results are likely to be supported by strategic acquisitions, robust wholesale momentum across Europe and ongoing investments in digital innovation, influencer collaborations and loyalty programs. The company is further strengthening its direct-to-consumer channels while optimizing global operations to improve efficiency.

Guess? leverages a diversified multi-channel distribution network that includes retail stores, e-commerce, wholesale partnerships and licensing agreements. This balanced approach helps mitigate risks tied to any single channel while expanding the company’s market reach and consumer accessibility. Aforesaid efforts are likely to have aided GES’ performance in the quarter under review. On its last earnings call, management had expected revenue growth of 2.9-4.7% for the second quarter of fiscal 2026. It had also projected Q2 revenues to gain from currencies to the tune of roughly one point.

On the flip side, the company is operating in a complex consumer environment, characterized by ongoing economic pressures and evolving purchasing behaviors. Macroeconomic factors, including inflation and broader economic uncertainty, have been leading consumers to prioritize value over premium offerings. This change in behavior has been placing pressure on GES’ premium pricing strategy and contributing to weaker performance, particularly in key markets like North America and Asia. The Zacks Consensus Estimate for revenues in Asia is pegged at $53 million, down 8.6% on a sequential basis.

Adding to these challenges, Guess? has been witnessing higher selling, general & administrative (SG&A) expenses, largely due to increased marketing investments and infrastructure spending. These higher costs have been further pressuring margins. Management had envisioned the adjusted operating margin between 2.5% and 3.3% and adjusted earnings per share (EPS) of 11-21 cents for the quarter under review.

Earnings Whispers for GES Stock

Our proven model does not conclusively predict an earnings beat for Guess? this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Guess? currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.

Stocks With the Favorable Combination

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Abercrombie & Fitch ANF currently has an Earnings ESP of +2.62% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $1.2 billion, which indicates an increase of 4.5% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for ANF’s quarterly EPS of $2.27 implies a decline of 9.2% from the year-ago quarter. The consensus mark has increased a penny in the past 30 days. ANF has a trailing four-quarter earnings surprise of 11.2%, on average.

American Eagle Outfitters AEO currently has an Earnings ESP of +5.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2025 EPS is pegged at 20 cents, which implies a 48.7% plunge year over year. The consensus mark has increased a penny in the past seven days.

The consensus mark for AEO’s quarterly revenues is pegged at $1.23 billion, which indicates a drop of 4.8% from the figure reported in the prior-year quarter. AEO delivered a negative trailing four-quarter earnings surprise of 0.3%, on average.

DICK'S Sporting Goods DKS currently has an Earnings ESP of +0.62% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $3.6 billion, which indicates a rise of 3.6% from the figure reported in the year-ago quarter. 

The Zacks Consensus Estimate for DKS’ quarterly EPS of $4.29 implies a decline from $4.37 reported in the year-ago quarter. The consensus mark has gone up three cents in the past 30 days. DKS has a trailing four-quarter earnings surprise of 5.6%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research