Fashion
US’ Guess Q2 profit hits $6.2 mn, but margins shrink on costs
Guess?, Inc has reported results for the second quarter (Q2) of fiscal 2026 (FY26) ended August 2, 2025, returning to profit with GAAP net earnings of $6.2 million compared to a loss of $10.6 million a year earlier, largely due to a $1.1 million unrealised derivative gain against a $40.5 million loss last year on its 2028 convertible notes.
Guess?, returned to profit in Q2 FY26 with GAAP net earnings of $6.2 million versus a $10.6 million loss last year.
Revenue rose 6 per cent to $772.9 million, driven by Europe, but Americas retail, wholesale and Asia weakened.
Operating margins shrank sharply, and H1 showed a $26.7 million loss, highlighting ongoing cost and demand pressures.
GAAP diluted earnings per share stood at $0.12 versus a loss of $0.28 in the same prior-year quarter, with share buybacks and currency providing a combined $0.05 benefit. On an adjusted basis, net earnings fell 40 per cent to $13.8 million, with adjusted diluted EPS dropping to $0.26 from $0.42.
Total net revenue grew 6 per cent to $772.9 million from $732.6 million a year earlier, reflecting strong growth in Europe where revenues advanced 14 per cent in dollars and 9 per cent in constant currency. Europe also delivered an 11 per cent rise in retail comparable sales. The Americas Retail business slipped 1 per cent with comparable sales down 5 per cent, while Americas Wholesale dropped 11 per cent. Asia rose 3 per cent but comparable sales declined 2 per cent, and licensing fell 10 per cent.
Operating income declined sharply as GAAP earnings from operations fell 62.1 per cent to $18.1 million, taking margins down to 2.3 per cent from 6.5 per cent a year ago, mainly due to higher store and advertising expenses, markdowns, a weaker business mix and the absence of a gain on asset sales booked last year, the company said in a release.
Adjusted operating income slid 25 per cent to $28.5 million with margins narrowing to 3.7 per cent from 5.2 per cent. By segment, Europe margins improved to 10.6 per cent, Americas Retail plunged to negative 3.7 per cent, Americas Wholesale improved slightly to 19.6 per cent, Asia weakened to negative 6.8 per cent, and Licensing rose to 95.4 per cent.
“We are pleased with our second quarter performance, as we delivered revenues ahead of our expectations for the period. Our improved revenues were mainly driven by stronger than expected comparable store sales in our European business and in our Americas Retail segment, which showed continued improvement in same store sales versus the prior quarter. During the period we managed margins and expenses well, which, coupled with the revenue growth, led to GAAP earnings per share within our range of expectations and better than expected adjusted earnings per share.” Carlos Alberini, chief executive officer, commented.
For the six months ended August 2, 2025, the company posted a GAAP net loss of $26.7 million compared with net earnings of $2.4 million in the prior-year period, reflecting a $3.2 million unrealised derivative loss versus a $2 million gain last year. Diluted loss per share was $0.53 compared with EPS of $0.04, with buybacks reducing EPS by $0.02 but currency adding $0.12. Adjusted net results showed a loss of $8.5 million against earnings of $9.1 million last year, with adjusted diluted EPS at negative $0.17 versus positive $0.16. Revenues for the half rose 7 per cent to $1.42 billion, supported by growth in Europe and Americas Wholesale but weighed down by a 10 per cent decline in Asia and a 12 per cent fall in licensing.
GAAP operating results swung to a $15.2 million loss from earnings of $27.9 million last year, with margins slipping to negative 1.1 per cent from 2.1 per cent. Adjusted operating income dropped to $2.7 million from $30.3 million, with margin reduced to just 0.2 per cent from 2.3 per cent.
Despite top-line growth in Europe and Wholesale, Guess’s profitability remains under pressure from higher costs, weak Americas retail demand, and significant losses in Asia, signalling a challenging path ahead for restoring margin strength.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (HU)
By
Bloomberg
Published
December 5, 2025
A new crop of Chinese gold jewelry brands are attracting investor interest in the wake of Laopu Gold Co.’s breakout success.
Hangzhou-based Borland, a gold jeweler specializing in traditional Chinese goldsmith technique known as “filigree”, said this week it has raised more than 100 million yuan ($14 million) from investors including Kering Ventures, the startup investment arm of Kering SA, and Shunwei Capital, a top Chinese venture capital firm co-founded by billionaire Xiaomi Corp. chairman Lei Jun.
Kering said the small minority interest in Borland through Kering Ventures enables the company to “participate in the development of a rapidly growing brand in the particularly buoyant 24-karat gold jewelry segment”.
Separately, Dayone Capital in recent days announced a strategic investment worth more than 100 million yuan in Lamchiu, a maker of hand-crafted bespoke pieces based in the northwest Chinese city of Lanzhou.
China’s high-end gold jewelry boom has been fueled by the surprise rise of Laopu, which has defied the weak performance seen among Western luxury rivals in China. Laopu’s revenue in the first half of 2025 soared more than 250% year-on-year to 12.4 billion yuan, on top of 168% sales growth the year before.
“Laopu has shown the market that this niche sector can continue to break out, and rising gold prices also help lift the overall buzz,” said Richard Lin, a consumer analyst with SPDB International Holdings Ltd. “The rising investment and financing enthusiasm for the heritage gold segment is clearly driven by confidence in the category’s long-term growth potential.”
Heritage gold jewelry refers to gold pieces rooted in Chinese culture and traditional goldsmith techniques, including filigree work. With stores in top-tier malls, Laopu’s clientele overlaps — and increasingly threatens — stalwarts from Hermès International SCA to Richemont-owned Cartier.
Still, while Borland and Lamchiu have official stores on e-commerce platforms like Alibaba Group Holding Ltd.’s Tmall and JD.com Inc., both have a limited physical presence — Borland operates just three mall outlets and Lamchiu, despite more than 1 million followers on ByteDance Ltd.’s TikTok-like Douyin, has only one Lanzhou storefront.
Borland said it will use the new funding to expand distribution and boost supply chain resilience. Dayone has formed a team to help Lamchiu with similar tasks.
The average November price settled at BRL 3.4505 (~$0.65) per pound, 1.91 per cent lower than in October 2025 and 12.5 per cent below November 2024. Over the month, the Index slipped 0.23 per cent and remained below export parity, signalling little support from external markets.
Brazil’s cotton prices fell in November, hitting their lowest real level since September 2009 as strong supply, weak domestic demand and softer global quotes pressured the market.
The CEPEA/ESALQ Index stayed below export parity, with buyers taking minimal volumes and sellers accepting lower prices to clear stocks.
ABRAPA reported 81.73 per cent of the 2024-25 crop processed by November 27.
Market participants are preparing for the year-end period, buying only small volumes. Sellers under cash pressure or looking to clear inventories have shown greater price flexibility, adding to the downward momentum, CEPEA said in its latest fortnightly report on the Brazilian cotton market.
Beyond ongoing shipments under term contracts, traders are already negotiating new deals for early 2026 deliveries and for cotton from the next season. According to Brazilian Cotton Producers Association (ABRAPA), 81.73 per cent of Brazil’s 2024-25 crop had been processed by November 27, with progress at 79 per cent in Mato Grosso and 92 per cent in Bahia.
Fibre2Fashion News Desk (KD)
Fashion
‘Made in Italy’: Yves Saint Laurent, Givenchy named among 13 luxury giants suspected of exploiting Chinese workers
By
AFP
Published
December 5, 2025
Thirteen further leading luxury brands, including Gucci, Versace and Yves Saint Laurent, are suspected of having used subcontractors in Italy who exploited Chinese workers, according to a request issued on Thursday by the Italian judicial authorities.
In a request for information seen by AFP, a prosecutor in Milan said they had found bags, wallets and garments from these brands during searches of Italian workshops employing ‘Chinese labour in severely exploitative conditions’.
Thursday’s proceedings concern brands from the French group Kering (Gucci, Yves Saint Laurent and Alexander McQueen), Givenchy (LVMH group), as well as Prada and its new acquisition, Versace, along with Ferragamo, Pinko, Dolce & Gabbana, Missoni, Off-White, leather goods maker Coccinelle, and the sportswear giant Adidas.
The Milan prosecutor is asking the brands, which are presumed innocent, to provide documents on their supply chains promptly, such as internal audits.
Other leading names have already been singled out by the Italian judiciary in similar cases: Dior, LVMH’s second-largest brand, the leather goods houses Tod’s and Alviero Martini, as well as an Armani subsidiary and cashmere specialist Loro Piana.
Poverty pay, workers sleeping in the workshop to produce items sold for thousands of euros: investigations carried out by the Milan public prosecutor’s office have revealed a serious lack of oversight across supply chains.
Under Italian law, companies can be held liable for violations committed by authorised suppliers. Advocates for fashion workers have been denouncing such abuses for decades.
The Italian government has gone on the offensive to defend its brands, with the Minister for Industry and ‘Made in Italy‘, Adolfo Urso, declaring that their reputation was ‘under attack’.
Tod’s, after denying any irregularities, was given an 11-week period by a Milan judge on Wednesday to strengthen its system for monitoring suppliers.
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