Guess, Inc. GES and its partner, global brand management firm WHP Global, co-owners of the New York-based fashion brand rag & bone, have entered a five-year licensee partnership with Signal Brands. 

This agreement focuses on expanding rag & bone’s handbags and small leather goods category, leveraging Signal Brands’ extensive expertise in fashion accessories and its global distribution network.

GES Stock Past Three-Month Performance

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GES Plays Integral Role in rag & bone’s Global Expansion

This new partnership marks a significant step in rag & bone’s global expansion. By working with an experienced partner, the brand aims to strengthen its presence in the luxury accessories market. The collaboration is expected to bring fresh, innovative designs while maintaining the brand’s signature craftsmanship and quality.

With a growing demand for premium handbags and leather goods, this initiative will allow rag & bone to tap into a broader consumer base. The expansion of its product offerings is set to enhance its appeal among fashion-conscious shoppers while reinforcing its position in the global fashion industry.

Guess Recognizes Value of Signal Brands’ Expertise

For over three decades, Signal Brands has managed a portfolio of globally recognized fashion brands licensed for handbags, small leather goods, luggage and travel accessories. 

As a longstanding partner of Guess, Signal Brands extended its collaboration with the brand for an additional 15 years, reinforcing its expertise in managing handbag lines worldwide. With its extensive industry knowledge and skilled design team, Signal Brands is well-positioned to support rag & bone’s growth in the accessories market. 

The inaugural collection launches in Spring 2025 and will be available through select retail partners and online channels, bringing rag & bone’s aesthetic to the luxury accessories market.

Other Key Factors of GES

Guess showcases strong global retail potential through acquisitions, international expansion and brand elevation. The company’s 13% year-over-year revenue growth in the third quarter of fiscal 2025, driven by the rag & bone acquisition and core business gains, highlights its scalability. With a growing product portfolio, direct-to-consumer expansion and disciplined cost management, Guess is well-positioned for long-term value.

Wholesale remains a key driver, with European revenues rising on early shipments and demand, while Americas wholesale soared 79% year over year in the fiscal third quarter, benefiting from internalized operations and expanded off-price shipments. The Zacks Rank #3 (Hold) company continues to strengthen its brand portfolio through influencer collaborations, targeted marketing and global expansion of rag & bone, reinforcing its multi-brand leadership.

Despite its growth initiatives, Guess faces significant challenges in key markets, particularly in North America and Asia. Alongside announcing its fiscal third-quarter results, the company lowered its fiscal 2025 earnings and revenue outlook due to external challenges, including currency fluctuations, elevated freight costs and increased taxes.

For fiscal 2025, Guess expects revenues of or slightly below $3 billion, indicating growth of 7.1%-8.1%, down from the previously stated 9.5-11%. Management forecasts fiscal 2025 adjusted earnings per share between $1.85 and $2, down from the earlier mentioned $2.42-$2.70. Notably, it reported $3.14 in fiscal 2024.

GES shares have lost 31.2% in the past three months compared with the industry’s decline of 16.5%.

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Some better-ranked stocks are The Gap, Inc. GAP, Deckers Outdoor Corporation DECK and Urban Outfitters Inc. URBN.

The Gap is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products. It flaunts a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for The Gap’s fiscal 2025 earnings and revenues indicates growth of 7.7% and 1.5%, respectively, from the fiscal 2024 reported levels. GAP delivered a trailing four-quarter average earnings surprise of 77.5%.

Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for DECK’s fiscal 2025 earnings and revenues implies growth of 21% and 15.6%, respectively, from the year-ago actuals. Deckers delivered a trailing four-quarter average earnings surprise of 36.8%.

Urban Outfitters is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home décor and gift items. It has a Zacks Rank of 2 at present. The company delivered a 16.9% earnings surprise in the last reported quarter.

The consensus estimate for URBN’s fiscal 2025 earnings and revenues indicates growth of 11.8% and 6%, respectively, from the fiscal 2024 reported levels. URBN delivered a trailing four-quarter average earnings surprise of 28.4%.

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