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.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)