About Guess , Inc.

Guess? wants you to get in its jeans and other attire and accessories. Founded to make flattering designer jeans, the company manufactures trendy, upscale apparel and accessories for men, women, and children under brands GUESS, GUESS Kids, YES, Baby GUESS, and GUESS by MARCIANO, among others. Guess operates some 1,680 stores worldwide. It directly operates more than 945 stores and concessions in the US, Canada, Europe, the Middle East, and Asia. Another 735 stores and concessions are run by licensees and distributors in the same markets. To capitalize on the power of its brand, Guess licenses its name for eyewear, footwear, jewelry, and watches. The company was founded in 1981.

Operations

Guess divides its business into five reportable segments: Europe, Americas Retail, Asia, Americas Wholesale, and Licensing.

The Europe segment comprises its wholesale and retail operations in Europe and the Middle East. The Americas Retail segment consists of retail and e-commerce operations in North America and its retail operations in Central and South America.

The Asia segment includes the company's wholesale and retail operations in Asia. The Americas Wholesale segment focuses on both wholesale operations in North America and export sales to Central and South America. And lastly, the Licensing segment comprises Guess' worldwide licensing operations, which have 15 domestic and international licenses.

Geographic Reach

Guess directly operates roughly 945 retail stores in the Americas, Europe, and Asia. The company's licensees and distributors operate through roughly 735 additional retail stores in 100 countries worldwide.

Guess' retail operations in the Americas account for more than 40% of its revenue. Europe accounts for around 35% of total net sales.

Sales and Marketing

Besides its brick-and-mortar retail operations, Guess wholesales its apparel and accessories to mass merchandisers (Macy's is its biggest customer), specialty shops, and upscale boutiques worldwide. The company also sells products online and through licensees and distributors in South America, Europe, Asia, Africa, Australia, and the Middle East.

The company's retail website is operational in the US, Canada, Mexico, Europe, South Korea, and China.

Financial Performance

After declining for three straight years, Guess' revenues remained static for 2016 and 2017, hovering around the $2.2 billion mark for both years. The company experienced decreased sales from its Americas Retail (5%), Americas Wholesale (6%), and Licensing (13%) segment. This was offset by sales increases from Europe (9%) and Asia (4%).

Guess' profits plummeted by 72% from $82 million in 2016 to $23 million 2017. As part of its cost-cutting initiatives, this was the result of restructuring charges of $6 million in addition to asset impairment charges of $34 million that were related to certain North American retail locations resulting from under-performance and expected store closures during 2017.

Cash from operating activities also declined from $179 million in 2016 to $71 million in 2017. This was due to unfavorable impact of changes in working capital which involved higher inventory related to retail expansion in Europe and Asia and its lower profits.

Strategy

Amid falling sales, Guess has been changing its mix of stores by opening new stores in what he believes are emerging markets and closing underperforming stores. In 2017, the company opened 165 new stores worldwide, while closing 124. Working with partners, the company opened 73 stores in Asia, 65 stores in Europe and the Middle East, 13 in the US, seven in Canada, and seven in Central and South America.

Guess also unveiled a worldwide cost reduction and restructuring plan in 2017 to better align its global cost and organizational structure with its strategic initiatives. This included the consolidation and streamlining of business processes in addition to a reduction in its global workforce and other expenses. It already plans to close at least 60 stores in the US and Canada during 2018.

Facing a soft retail market and decreased store traffic in the Americas, Guess is looking internationally for growth. It is focused on increasing its store network and ecommerce capabilities in Europe and Asia, particularly in mainland China.

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Guess , Inc.

1444 S Alameda St
Los Angeles, CA 90021-2433
Phone: 1 (213) 765-3100
Fax: 1 (213) 744-7838

Stats

  • Employer Type: Public
  • Stock Symbol: GES
  • Stock Exchange: NYSE
  • CEO and Director: Victor Herrero Amigo
  • Chairman and Chief Creative Officer: Paul Marciano
  • CFO: Sandeep Reddy
  • 2017 Employees: 14,300

Major Office Locations

  • Los Angeles, CA

Other Locations

  • Leeds, AL
  • Anthem, AZ
  • Scottsdale, AZ
  • Tempe, AZ
  • Tucson, AZ
  • Alpine, CA
  • Arcadia, CA
  • Bakersfield, CA
  • Barstow, CA
  • Beverly Hills, CA
  • Brea, CA
  • Cabazon, CA
  • Calexico, CA
  • Camarillo, CA
  • Canoga Park, CA
  • Carlsbad, CA
  • Cerritos, CA
  • Commerce, CA
  • Concord, CA
  • Costa Mesa, CA
  • Culver City, CA
  • Downey, CA
  • Fairfield, CA
  • Folsom, CA
  • Fresno, CA
  • Gilroy, CA
  • Glendale, CA
  • Lakewood, CA
  • Manteca, CA
  • Modesto, CA
  • Montclair, CA
  • Montebello, CA
  • National City, CA
  • North Hollywood, CA
  • Northridge, CA
  • Ontario, CA
  • Orange, CA
  • Palmdale, CA
  • Pismo Beach, CA
  • Rancho Cucamonga, CA
  • Redondo Beach, CA
  • Riverside, CA
  • Roseville, CA
  • San Bruno, CA
  • San Diego, CA
  • San Francisco, CA
  • San Jose, CA
  • San Leandro, CA
  • San Mateo, CA
  • San Ysidro, CA
  • Santa Monica, CA
  • Sherman Oaks, CA
  • Tejon Ranch, CA
  • Torrance, CA
  • Visalia, CA
  • West Covina, CA
  • Castle Rock, CO
  • Lakewood, CO
  • Littleton, CO
  • Rehoboth Beach, DE
  • Aventura, FL
  • Boca Raton, FL
  • Brandon, FL
  • Cutler Bay, FL
  • Destin, FL
  • Doral, FL
  • Ellenton, FL
  • Estero, FL
  • Fort Lauderdale, FL
  • Fort Myers, FL
  • Hialeah, FL
  • Miami, FL
  • Miami Beach, FL
  • Naples, FL
  • Orlando, FL
  • Pembroke Pines, FL
  • Saint Augustine, FL
  • Sunrise, FL
  • West Palm Beach, FL
  • Atlanta, GA
  • Commerce, GA
  • Dawsonville, GA
  • Lawrenceville, GA
  • Woodstock, GA
  • Waipahu, HI
  • Aurora, IL
  • Gurnee, IL
  • Oak Brook, IL
  • Skokie, IL
  • Edinburgh, IN
  • Michigan City, IN
  • Louisville, KY
  • Simpsonville, KY
  • Gonzales, LA
  • New Orleans, LA
  • Boston, MA
  • Cambridge, MA
  • Holyoke, MA
  • Peabody, MA
  • Wrentham, MA
  • Bethesda, MD
  • Hagerstown, MD
  • Hanover, MD
  • Queenstown, MD
  • Silver Spring, MD
  • Auburn Hills, MI
  • Birch Run, MI
  • Byron Center, MI
  • Howell, MI
  • Novi, MI
  • Sterling Heights, MI
  • Albertville, MN
  • Hazelwood, MO
  • Saint Louis, MO
  • Charlotte, NC
  • Concord, NC
  • Atlantic City, NJ
  • Cherry Hill, NJ
  • Edgewater, NJ
  • Edison, NJ
  • Elizabeth, NJ
  • Jackson, NJ
  • Jersey City, NJ
  • Paramus, NJ
  • Tinton Falls, NJ
  • Santa Fe, NM
  • Henderson, NV
  • Jean, NV
  • Las Vegas, NV
  • Sparks, NV
  • Bay Shore, NY
  • Central Valley, NY
  • Deer Park, NY
  • Elmhurst, NY
  • Huntington Station, NY
  • Lake Grove, NY
  • New York, NY
  • Niagara Falls, NY
  • Riverhead, NY
  • Staten Island, NY
  • Victor, NY
  • Waterloo, NY
  • West Nyack, NY
  • Cleveland, OH
  • Monroe, OH
  • Oklahoma City, OK
  • Bethlehem, PA
  • King Of Prussia, PA
  • Philadelphia, PA
  • Pottstown, PA
  • Tannersville, PA
  • Washington, PA
  • Bluffton, SC
  • Charleston, SC
  • Gaffney, SC
  • Myrtle Beach, SC
  • Lebanon, TN
  • Nashville, TN
  • Allen, TX
  • Arlington, TX
  • Canutillo, TX
  • Cypress, TX
  • Dallas, TX
  • El Paso, TX
  • Fort Worth, TX
  • Grapevine, TX
  • Houston, TX
  • Katy, TX
  • Laredo, TX
  • Mcallen, TX
  • Mesquite, TX
  • Midland, TX
  • San Antonio, TX
  • San Marcos, TX
  • Sugar Land, TX
  • Texas City, TX
  • Leesburg, VA
  • Mc Lean, VA
  • Williamsburg, VA
  • Bellevue, WA
  • Olympia, WA
  • Tukwila, WA
  • Vancouver, WA
  • Pleasant Prairie, WI
  • Saint-Bruno, Canada
  • Taoyuan City, Taiwan
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