Authentic Brands Group (ABG) plans to acquire a 51 per cent stake in Guess's intellectual property, with the founding Marciano family members and Carlos Alberni, CEO, retaining a 49 per cent stake. This new structure is similar to the one used in the 2024 acquisition of Rag & Bone, where intellectual property was separated from a company's operating assets. As part of the deal, Guess will be taken private, with minority shareholders receiving $16.75 per share in cash. The transaction is expected to close in the fourth quarter of fiscal 2026.

Despite this strategic move, Guess’s recent financial results were mixed. The company reported a 6 per cent increase in Q2, FY26 sales to $772.9 million, but its operating income declined sharply to $18.1 million from $47.8 million the previous year. This resulted in a lower operating margin of 2.3 per cent compared to 6.5 per cent last year. Alberini notes, revenues exceeded expectations due to strong momentum in Europe and US retail.

In H1, FY26, Guess’ sales increased by 7 per cent to $1.42 billion. However, the company reported a net loss of $26.7 million, a stark contrast to a profit of $2.4 million in the same period last year. It’s operating income in H1, FY25 declined to $15.2 million as against $27.9 million reported in the corresponding period last year.

Europe remained a strong performer, with sales rising 11 per cent to $742.9 million. The company’s retail sales in North America grew by 3 per cent to $336.0 million, and wholesale sales increased by 21 per cent to $176.6 million. However, sales in Asia declined by 10 per cent to $113.9 million.

Europe was the main driver of the company’s operating profit in the first half of the year, followed by US wholesale. The US retail division posted a loss, which was attributed to rising rents and operational costs. Globally, Guess currently operates 1,589 stores.