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US’ Guess Q2 profit hits $6.2 mn, but margins shrink on costs

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US’ Guess Q2 profit hits .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)



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Germany’s BOSS secures landmark Australian Open partnership

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Germany’s BOSS secures landmark Australian Open partnership



BOSS enters a new era in sport and culture, announcing a landmark partnership as the Official Lifestyle Outfitter of the Australian Open from 2027. From first serve to championship point, the brand will present elevated style on and off the court, combining sharp tailoring, sports-inspired looks, and standout hospitality moments – all on one of the world’s most prestigious sporting stages.

The partnership is rooted in a shared mindset: ambition, world-class performance, global relevance, and a bold confidence that defines both BOSS and the Australian Open. As a cornerstone of BOSS’s cultural strategy, the collaboration creates a powerful platform to connect with fans at scale, unlock new audiences, and showcase the full world of BOSS through its collections, ambassadors, and experiences.

BOSS will become Official Lifestyle Outfitter of the Australian Open from 2027, marking a key step in its sport and culture strategy.
The brand will dress up to 4,000 staff and elevate on- and off-court style through tailored looks, activations and merchandise, strengthening its global presence in tennis while redefining the tournament’s visual identity.

“We are absolutely excited to partner with the Australian Open, which is one of the most dynamic and globally followed sporting events worldwide,” stated Daniel Grieder, CEO of HUGO BOSS. “This collaboration is a natural fit for us, as it brings together two brands that share the same commitment to excellence, innovation, and creating extraordinary experiences. Tennis is part of BOSS’s DNA. The partnership therefore

marks an important step in our strategy to further drive the brand’s positioning at the intersection of sport, lifestyle, and global fan engagement.”

“The Australian Open has always been about more than just great tennis – it’s about atmosphere, innovation, and setting the benchmark for major sporting events worldwide,” Tennis Australia CEO Craig Tiley said. “BOSS is a global brand with impeccable credentials in sport and style, and together we will enhance how our tournament looks, feels, and connects with fans from around the world.”

In its new role as the tournament’s Official Lifestyle Outfitter, BOSS is set to transform the visual identity of the Australian Open like never before. Dressing up to 4,000 staff, officials, umpires, and ball kids, BOSS will make an unmistakable impact, setting its signature confident style from the very first moment. The result is a bold step change: a unified, elevated, and distinctly modern aesthetic that will be visible across every corner of Melbourne Park. A curated palette of refined shades, subtle nods to the brand’s tailoring expertise, and easy-wear silhouettes engineered for the Melbourne heat come together to signal a new era in tournament style – perfectly in tune with the fast-paced, high-energy spirit of the event.

BOSS branding will also be displayed around the venue, including inside the iconic Rod Laver Arena. Beyond the tournament’s courts, the collaboration will extend to exclusive replica teamwear, merchandise, and off-court capsules. Dedicated pop-up stores, immersive on-site fan activations, an elevated guest experience, and further special events will bring the BOSS attitude to every part of “The Happy Slam.” Online and in store, impactful storytelling and curated initiatives will also share the sunshine spirit of Melbourne with tennis fans around the globe.

In a powerful opening serve that ignites excitement and sets the tone for what’s to come, the brand has created bold visuals to accompany today’s announcement. Bridging the worlds of fashion and sport, the imagery reimagines tennis balls in tactile fabrics – from rich wool to soft alpaca – as a nod to BOSS’s roots in craft and tailoring.

The brand’s history in tennis dates back to the 1980s, when it embarked on a 15-year-long sponsorship of the Davis Cup, the world’s largest international team competition in men’s tennis. Most recently, BOSS has welcomed star players Taylor Fritz and Matteo Berrettini, as well as emerging talents Noma Noha Akugue and Ella Seidel, as brand ambassadors, and since 2022 has served as title sponsor of popular ATP 250 tournament the BOSS OPEN in Stuttgart. Through the Australian Open partnership, BOSS is cementing its presence in tennis at one of the world’s most prestigious tournaments and propelling its position as a leading global style authority at the intersection of sport and culture.

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 (JP)



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Long energy disruptions to raise pressures on SEA nations: S&P Global

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Long energy disruptions to raise pressures on SEA nations: S&P Global



The ratings on Vietnam (BB+/stable/B) have sufficient buffers to withstand the effects of the Iran war, according to S&P Global Ratings, which believes the country’s strong economic growth, its booming export sector and relatively unencumbered government balance sheet will act as ballast against the energy market dislocation.

Sovereign ratings in Southeast Asia are under risk due to the Middle East conflict. Fiscal and external metrics underpinning the ratings will be strained if the global energy market does not begin to normalise in the next few months, the credit rating agency noted.

Prolonged energy disruptions will raise fiscal and external pressures on Southeast Asian nations, according to S&P Global.
Indonesia is more vulnerable to weakening credit metrics if the war continues and energy prices remain high.
Vietnam’s strong economic growth, its booming export sector and relatively unencumbered government balance sheet will act as ballast against the energy market dislocation.

If the longer-term impact of the war is severe, the robust growth prospects of economies dependent on imported energy may also be impaired, weakening economic support for the ratings, it said.

Its base case assumes the war’s intensity will peak and the Strait of Hormuz’s effective closure will ease during April, but some disruptions are likely to persist for months.

A prolonged surge in the cost of energy imports—coupled with a loss of foreign exchange reserves—is one risk scenario that could materially weaken Vietnam’s external liquidity position, the credit rating agency said in a regulatory article.

And a sharp increase in the fiscal deficit, in the unlikely event that economic growth also decelerates abruptly, could also erode the government’s more favourable leverage profile, it noted.

If these scenarios persist beyond six months and the government is unable to mitigate the impact on credit metrics, they could erode Vietnam’s robust credit buffers at the current ratings level.

If the pressure on the economy causes capital outflows, the authorities may use foreign exchange reserves to support the exchange rate.

The budget deficit in the country could also widen if the energy disruption drags on. Outcomes will ultimately be tied to the duration of the conflict and the disruptions, it said

Meanwhile, the sovereign ratings on Indonesia (BBB/stable/A-2) are sensitive to weakening fiscal or external credit metrics resulting from the war.

Potential risks include higher energy prices raising budgetary subsidy payments, weighing on deficits; government interest payments rising if accelerating inflation fuels a further increase in market interest rates; and importing more expensive oil products widening the current account deficit (CAD).

The government’s response to the energy disruption may contain some of the damage to its fiscal performance, S&P Global Ratings noted. But, higher commodity prices could also boost government revenue. This helps to limit the increase in the size of the fiscal deficit and reduces upward pressures on the budgetary interest payment ratio.

Indonesian exports have grown this year, but the growth momentum is tempered by declining sales of energy products. With the sharp rebound in energy prices, Indonesian export growth could rise further to mitigate the increase in oil imports.

Overall, Indonesian credit metrics are likely to weaken marginally under the credit rating agency’s base case.

As a commodities exporter, Indonesia may see some mitigating developments offsetting some of the pressures on the sovereign ratings, particularly if there is a broad-based strengthening of commodities prices. This could help to turn around some of the worsening trend in the country’s credit metrics once the situation normalises.

Fibre2Fashion News Desk (DS)



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2026 growth in Africa to drop by up to 0.2% due to Iran war: Report

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2026 growth in Africa to drop by up to 0.2% due to Iran war: Report



Growth in African countries is projected to decline by up to 0.2 per cent this year due to the Middle East crisis, according to a joint policy document by the African Union Commission, the African Development Bank Group (AfDB), the United Nations Economic Commission for Africa (ECA) and the United Nations Development Programme (UNDP). 

The report titled ‘Impacts of the Conflict in the Middle East on African Economies’, cautions that African economies, which were slowly recovering from the severe consequences of COVID-19, the Russia-Ukraine war and rising trade tariffs, could be among the most affected by the ongoing conflicts in the Middle East.

Growth in African countries is projected to decline by up to 0.2 per cent this year due to the Middle East crisis, according to a joint policy document by the African Union Commission, the African Development Bank Group, the UN Economic Commission for Africa and the UN Development Programme.
The main effects of the conflicts on Africa include surging prices of hydrocarbons, food products and fertilisers.

Kevin Urama, chief economist and vice president for economic governance and knowledge management at AfDB who presented the report on the sidelines of the Spring Meetings of the International Monetary Fund and the World Bank in Washington, DC, recently, urged African governments not to panic or take hasty decisions that could harm their fiscal balances.

The main effects of Middle Eastern conflicts on African economies include surging prices of hydrocarbons, food products and fertilisers, noted the report.

“Eighty per cent of the oil imported into Africa comes from this region, as well as 50 per cent of refined petroleum,” said ECA executive secretary Claver Gatete.

The report recommends, in particular, strategic inflation management to ensure short-term price stability expectations. It cautions oil-exporting countries to adopt strict fiscal discipline by managing windfall revenues prudently, while strengthening debt-monitoring, and using energy reserves strategically.

Where fiscal space allows, it advises that temporary and targeted social protection measures be deployed to shield the most vulnerable populations from the crisis, added the report.

However, the report urged governments to avoid broad-based subsidies that could worsen long-term fiscal deficits, and to diversify sources of energy, inputs and food supplies.

It also recommends that African governments strengthen regional and intra-African trade in oil and fertiliser markets to enhance resilience; and ensure smooth inter-institutional coordination to harmonise strategic monetary and fiscal policies.

At the same time, the report calls upon development partners, multilateral banks and development finance institutions to provide emergency support to African countries through crisis response measures and technical assistance.

It also recommends a speedy operationalisation of the African Continental Free Trade Area (AfCFTA), while strengthening large-scale domestic capital mobilisation.

The report also suggested Africa to diversify its energy mix by accelerating investments in renewable energy and the gas sector.

Fibre2Fashion News Desk (DS)



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