Guess? Inc.

Sector: Apparel and footwear Countries of operation: Sells offline in approximately 100 countries including China, the UK and the US, and online in 55 countries Key product categories: Accessories, apparel and footwear Annual Metrics [caption id="attachment_150266" align="aligncenter" width="700"] Fiscal year ends January 30 of the same calendar year
*Trailing twelve months ended on April 30, 2022[/caption]   Summary Founded in 1981 and headquartered in Los Angeles, California, Guess? is a global lifestyle brand that designs, distributes, licenses and markets contemporary apparel and accessories for men, women and children. The company’s product lines offer comfortable apparel and accessories—split into key product categories (activewear, denim, handbags, knits and outerwear) with a focus on essentials. As of April 30, 2022, the company operates 1,638 retail stores in the Americas, Asia and Europe. The company’s partners and distributors operate 558 additional retail stores worldwide. As of April 30, 2022, its products are sold in over 100 countries, through its own stores, its partners and distributors. Company Analysis Coresight Research insight: Since 2018, Guess? has reported fluctuating revenue, particularly in fiscal 2021 due to the pandemic, but we saw strong recovery in fiscal 2022, as illustrated by the company’s 36.8% year-over-year revenue growth. While the company did not disclose its e-commerce penetration, we believe it is still making efforts to expand its online commerce capabilitiesWe expect the company’s revenue to continue to grow in fiscal 2023, driven by the recovery of the occasionwear market and its investment into improving its omnichannel capabilities.

Tailwinds	Headwinds
Opportunities for optimizing store portfolios through store closures Opportunities to boost sales growth under its current e-commerce, inventory and technology strategies The scale and resources related to its global distribution The current trend toward more casual fashion The recovery of the occasionwear and formal apparel categories	Challenges caused by lower store traffic in the Asia market due to the pandemic Elevated competition from online young-fashion brands such as Champion Supply chain delays and cost pressures, particularly in freight and labor, due to the pandemic

  Strategy Guess? updated its “Fiscal 2025 Strategic Plan” in March 2021, which includes the following key focus areas for meeting customers’ expectations and futureproofing the group: 1. Develop its organization and culture

• Emphasize global functional responsibilities and capitalize on local market expertise and accountability.
• Develop each market with an omnichannel approach and place accountability on one team to develop all channels in the market—instead of using a traditional approach with separate accountability by channel and business unit.

2. Optimize brand relevance

• Optimize brand architecture to target three consumer groups: heritage, millennials and Generation Z.
• Engage more effectively with a younger and broader audience by leveraging celebrity and influencer partnerships and collaborations.
• Increase full price selling and reduce promotional activity.

3. Focus on customer experience

• Implement processes and platforms to provide customers with a seamless omnichannel experience—with a focus on four key areas: increased use of customer data collection and analysis; knowledge of customer segments, journeys and preferences; the creation of a seamless customer experience using world-class tools; and the optimization of customer engagement and brand loyalty programs.

4. Expand global footprint

• Continue to expand the brand reach by optimizing the current footprint’s productivity and profitability as well as expanding distribution channels.

5. Ensure product excellence and increase range of offerings

• Extend product offerings to provide customers a range of products for differing occasions and lifestyles.
• Seek to address local product needs more effectively.
• Focus more on product quality, styling and assortment.

6. Improve functional capabilities

• Drive long-term material operational improvements—in logistics, sourcing, product development and production, inventory management and overall infrastructure.

Revenue Breakdown (FY22)   Company Developments

Date	Development
May 5, 2022	Guess? announces the return of global music superstar and fashion icon, J Balvin, for the GUESS Originals x J Balvin Amor Collection.
April 20, 2022	Guess? launches an in-store customer recycling program in partnership with certified social enterpreise Homeboy Recycling.
March 16, 2022	Guess? announces that Dennis Secor has been appointed Interim Chief Financial Officer for Guess?, effective April 1, 2022.
January 11, 2022	Guess? launches a special edition capsule of watches to celebrate the 2022 Lunar New Year.
November 3, 2021	Guess? furthers its sustainability commitment by signing an open letter to G20 leaders, urging them to fulfill their obligations as outlined in the Paris Agreement.
September 27, 2021	Guess? launches a collection in collaboration with American model, actor and television personality Anna Nicole Smith.
July 20, 2021	Guess? releases its fiscal year 2021 Sustainability Report, which covers the three pillars of the company’s sustainability strategy: operating with integrity, empowering people and protecting the environment.
April 7, 2021	Guess? launches a new collection in collaboration with Los Angeles-based art collective FriendsWithYou.
June 11, 2020	Guess? announces the permanent closure of 100 stores in North America and China as its leases are near expiration.
April 14, 2020	Guess? partners with organizations to donate funds and encourage blood donations during the Covid-19 crisis.
March 16, 2020	Guess? reveals its Guess x J Balvin Colores Capsule Collection.
January 14, 2020	Guess? announces the return of Jennifer Lopez as the face of Guess? and Marciano worldwide.
December 4, 2019	Guess? joins Ellen MacArthur Foundation’s program for innovative sustainable denim.
December 3, 2019	Guess? unveils its fiscal 2025 strategic plan.
November 6, 2019	Guess? announces the appointment of Katie Anderson as Chief Financial Officer.
March 22, 2019	Guess? introduces the Guess Eco Collection for spring 2019.
January 28, 2019	Guess? announces the appointment of Carlos Alberini as CEO.
January 14, 2019	Guess? partners with global music star J Balvin to launch a capsule collection.

  Management Team

• Maurice Marciano—Chairman and Director
• Carlos Alberini—CEO
• Dennis Secor —CFO
• Paul Marciano—Chief Creative Officer and Director

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Source: Company reports/S&P Capital IQ