Guess?, Inc. (GES.N) reported a mixed set of financial results for the third quarter of fiscal 2025, as revenue grew but margins slipped. The company also revised down its full-year guidance, citing ongoing challenges in key markets.

For the third quarter ended November 2, 2024, the fashion retailer saw a 13% jump in revenue, reaching $739 million, thanks in part to its acquisition of the rag & bone brand. However, the company also faced declining sales in North America and Asia, which led to a GAAP loss per share of $0.47, a sharp drop from last year’s $0.82 profit per share.

In its earnings statement, Guess? attributed the increase in revenue to its rag & bone acquisition, which helped boost results. Comparable sales, which include e-commerce, were up 8% in Europe but fell 14% in the Americas, with slower foot traffic and fewer sales in the company’s North American and Asian retail locations.

Despite the challenges, Guess? maintained that its investments in new products and marketing were resonating with customers, particularly with the launch of its rag & bone and Guess Jeans brands. CEO Carlos Alberini said the company had managed margins and expenses well during the quarter, but acknowledged the environment was tougher in some regions, especially in North America and Asia.

Looking ahead, the company has lowered its fiscal 2025 guidance, now expecting revenue growth between 7.1% and 8.1% in U.S. dollars, down from previous expectations. It also forecasts a GAAP earnings per share range of $0.70 to $0.82 and adjusted EPS between $1.85 and $2.00.

The company’s performance by region showed mixed results. Europe posted a 7% revenue increase, while Asia saw a more modest 2% rise. In contrast, Americas retail sales took a hit, falling 14%, though wholesale revenue surged by 79%.

Guess? said the disappointing performance in Asia and North America could be partly due to slower consumer traffic and higher costs. For the rest of the year, the company expects the trend to continue, with challenges from currency fluctuations and higher operating expenses.

Despite the downward revision to its outlook, the company is staying focused on its long-term growth strategy, particularly with its expanding global brand presence.