Guess Inc.'s first-quarter income grew 34.5 percent partly because of several global factors, including European and Asian tourists who shopped in the U.S. to reap benefits from the falling dollar.
"At tourist destinations, where our stores are in coastal cities, we saw significant increases in our business," Carlos Alberini, president and chief operating officer, said in an interview. "This is one of the benefits of having a truly global brand. Those tourists are coming to us because they recognize the brand from their own markets, but they know that due to strong currencies [overseas] they are getting better value here."
For the three months ended May 3, income was $47.8 million, or 51 cents a diluted share, versus $35.5 million, or 38 cents, in the year-ago quarter. Total revenues rose 29.4 percent to $489.2 million from $377.9 million. Included in revenues was a 30.2 percent spike in sales to $465.7 million from $357.6 million, with the balance from royalties.
Alberini said comparable-store sales were up 7 percent in the quarter, after a 13 percent gain in last year's quarter. He attributed the business gains to strong product and the company's focus on training store associates, customer retention and improving turnover rates.
"It's not all about margins," he said. "While we care a great deal about our margins, at the same time [we have to] provide the level of service that our customers are expecting."
Paul Marciano, vice chairman and chief executive officer, said in an interview that the firm now has showrooms in Barcelona, London, Paris, Düsseldorf, Milan and Florence. Another is to open in the next six to eight months in Lugano, Switzerland. Revenues in Europe, which surpassed $700 million, rose 50 percent in the quarter, and contributed to 68 percent of the firm's operating earnings growth, the ceo said.
Marciano said the firm is two years ahead of its store count plans for Europe. "The plan was supposed to be 250 stores in Europe in 2010, and we are already close to 150. We will be at 220 stores by next year," he said.
In addition, the company plans to triple its e-commerce business over the next three years. It expects to launch e-commerce sites on June 1, 2009, in Italy, Spain, France and the U.K. Currently its site is operational only in the U.S. and Canada.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye