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, Baby GUESS, and GUESS by MARCIANO, among others. Its trademark sexy ads, featuring the likes of Claudia Schiffer, are designed in-house. Guess? operates a noteworthy 1,690 stores worldwide. It directly operates more than 830 stores and concessions in the US, Canada, Europe, the Middle East, and Asia. Another 800 stores and concessions are run by licensees in the same markets. To get more bang from its brand, Guess? licenses its name for eyewear, footwear, jewelry, and watches.
Guess? divides its business into five reportable segments: Europe, North American Retail, Asia, North American Wholesale, and Licensing.
The Europe segment comprises its wholesale and retail operations in Europe and the Middle East. The North American 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 North American 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?'s worldwide licensing operations, which have 15 domestic and international licenses.
The company's retail operations in North America account for 42% of its revenue. Guess? is also a wholesaler to major department stores, including Macy's and Dillard's, specialty shops, and upscale boutiques.
Sales and Marketing
Guess? reduced ad spending in 2014, logging $45 million compared to $59 million in 2013.
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.
Guess? revenue shrunk 3% in 2014 (ended February) as compared to 2013 due to decreases from the North American Retail, North American Wholesale, and Europe. Net income for Guess? faded 14% during the same reporting period primarily due to a decrease in revenues as well as restructuring charges resulting from streamlining structure and reducing expenses in Europe, Asia, and North America.
Guess? changed it mix of stores in 2014. Working with partners, the company opened 177 new stores worldwide with 89 in Europe and the Middle East, 67 in Asia, 13 in the U.S. and Canada, and eight in Central and South America. At the same time, the company closed 159 stores worldwide. It shuttered 84 stores in Europe and the Middle East, 38 in Asia, 31 in the US and Canada, and six in Central and South America.
Surprisingly, since it would seem like a natural market for Guess? products, the company opened its first direct store in Japan in the first part of its 2015 fiscal year.
And, in an effort to broaden options for itself and shoppers, Guess? began using VendorNet Omnichannel Technology in 2013 for fulfilling orders by shipping goods from stores. That’s part of the company’s push toward digital-based marketing and fulfillment. Guess? has expanded its efforts in digital advertising platforms including fashion and beauty websites, Facebook, Twitter and global search engines. In 2014 the company went mobile with a smartphone application with e-commerce capability.