Guess? (GES) Stock Forecast & Price Target

Guess Inc. has demonstrated a robust financial performance, highlighted by a total sales increase of 7.2% year-over-year to $791 million, surpassing analyst expectations. The company experienced significant growth in its wholesale segment in the Americas, achieving a remarkable 26.5% increase year-over-year, alongside a 7% rise in retail comp sales in the same region. Additionally, Guess's European market contributed positively, with total sales up 9.7% year-over-year to $404.1 million, reinforcing the company's strong positioning in both domestic and international markets.

The financial analysis of Guess Inc. indicates a concerning trend, as the operating margin for Q3 2025 declined by 110 basis points to 4.7%, despite performing better than initial consensus expectations. Additionally, the gross margin contracted by 110 basis points to 42.5%, which fell short of market forecasts, while retail comparable sales experienced a 3% year-over-year decline primarily driven by eCommerce. Furthermore, the company reported a decrease in cash and cash equivalents from the previous quarter, suggesting potential liquidity challenges amidst rising costs and continuous markdown pressures.