Record Full-Year and Best-Ever Fourth Quarter Sales
Consolidated 2025 sales reached a record $1.49 billion; fourth quarter sales were a company-best $386 million. Reported Q4 growth was +7% and organic Q4 growth was +3%.
Record Net Income and EPS
Full-year net income reached a record $168 million and diluted EPS was $5.24, a +2% increase versus 2024. Q4 net income was $28 million, or $0.88 per diluted share, a +16% increase year-over-year.
Strong Brand Performance (Multiple Brands)
Notable brand growth: Cavalli +33% (Q4 and full year), MCM +40% (Q4) and +17% (full year), Lacoste +23% (Q4) and +28% (full year, reaching $108 million), Coach +5% (Q4) and +15% (full year), Jimmy Choo +6% (full year), Montblanc +22% (Q4). GUESS and Donna Karan returned to Q4 growth of +7% and +8% respectively.
Successful New Product Launches & Portfolio Expansion
Launched several high-profile rollouts including proprietary ultra-luxury Solferino (10 scents), new extensions for Cavalli, MCM, Coach and others. New/existing license activity includes Longchamp, Off-White, Goutal, David Beckham and Nautica; GUESS license extended 15 years through 2048.
Solferino Direct-to-Consumer Momentum
Solferino reached 40 doors worldwide by year-end 2025; planned expansion of +50 doors in H1 2026 with a long-term target of up to 500 doors. Entered U.S. via Bloomingdale's (online + 7 stores).
Travel Retail & E-commerce Strength
Travel retail sales grew +6% in 2025 and accounted for ~7% of net sales. E‑commerce channels like Amazon and early TikTok Shop activity showing strong engagement and growth potential.
Inventory and Working Capital Improvements
Year-end inventory down 6% versus 2024; inventory days decreased to 244 from 259 (lowest since 2022). Full-year operating cash flow rose to $215 million (up $27 million), representing 103% of net income.
Tariff Mitigation and Cost Savings Examples
Operational changes (e.g., moving production for three GUESS lines to Italy and diverting components shipments from China to Europe) yielded tariff savings of $3.5 million and demonstrated ability to capture savings through supply-chain shifts.
Balance Sheet Strength & Capital Returns
Cash, cash equivalents and short-term investments totaled $295 million; the company repurchased $14 million of shares in 2025 and maintained an annual dividend of $3.20 per share.
Geographic and Channel Positives
Solid Q4 performance across both U.S. and European operations (Europe Q4 sales +9% with 4% organic and 4% FX benefit). Early 2026 sell-through and reorders noted as healthy in many regions; Latin America and Australia performing well.