Guess Inc. and its former president have become the latest in the fashion world to face the scrutiny of Italian tax authorities.The company said in a Securities and Exchange Commission filing Tuesday that it will “vigorously contest” a $12 million tax assessment for 2008 and 2009 levied by officials in Italy as a prosecutor commenced a review of the actions of three members of its European management team and its former president and chief operating officer, Carlos Alberini.Alberini, who is now chief executive officer of Restoration Hardware Inc., was the signing officer for Guess’ Italian tax filings during the years covered. He left the company to become co-ceo of Restoration Hardware in May 2010.Guess said it could face additional tax assessments for 2010 and 2011, resulting in “similar or even larger assessments.”Deborah Siegel, Guess’ senior vice president, general counsel and secretary, told WWD that only one of the three members of the European management group remains with the company. She declined to identify the individuals or the specifics leading to the dispute. “We do not know the next steps to be taken or the timing involved,” she said.Because the additional tax amount is greater than 2 million euros, or about $2.6 million at current exchange, the matter was automatically referred to a public prosecutor “who may seek to pursue charges or close the matter,” Guess said. According to Italian law, if charges are brought, they would be against individuals affiliated with the company’s Italian subsidiaries rather than against the company or its affiliates. Shares of Guess dropped 44 cents, or 1.8 percent, to $24.52 in New York Stock Exchange trading Tuesday.Calls seeking comment from Alberini at Restoration Hardware’s offices in Corte Madera, Calif., weren’t returned at press time Tuesday. The tax dispute came to light just as Restoration Hardware prepared to float 5.2 million shares at $22 to $24 in an initial public offering. Alberini rose to the ceo post in August after Gary Friedman was ousted as co-ceo over an alleged relationship with an employee and became ceo of the firm’s Hierarchy spin-off.The fashion world has long been a target of Italian tax authorities, with most designers being cleared of any allegations. The latest to be caught up in a tax probe are Domenico Dolce and Stefano Gabbana. The designers were cleared of tax-evasion charges in April 2011 after a three-year probe, only to see the ruling overturned seven months later. The case was reopened in March and is still pending.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim