A view of a Guess store logo sign in Munich, Germany.
Guess Inc. continues to look abroad for growth while focusing on cost cuts at home.The Los Angeles-based company said net losses for the quarter tallied $2.9 million, or 4 cents a share, down from earnings of $9.1 million, or 11 cents, a year earlier. Adjusted earnings, which factor out losses on lease terminations and asset impairment charges, rose 8.1 percent to $10.4 million, or 12 cents a share, in line with analyst estimates.Revenues for the three months ended Oct. 28 inched up 3.3 percent to $528.2 million.Victor Herrero, chief executive officer, said, “We continue to see good momentum in Europe and Asia, where our revenues were up 19 percent and 17 percent, respectively, mainly driven by new store openings, wholesale growth and positive comp sales.”In the Americas region, Guess’ retail sales fell 13.4 percent, but the business’ operating margins improved by 240 basis points — to a decline of 2.5 percent from a drop of 4.9 percent a year earlier. Herrero attributed this to the company’s efforts to manage markdowns, higher initial mark-ups, negotiated rent reductions and the closure of unprofitable stores.“Overall, as I peek into the future of our company, I believe that Europe and Asia still offer a lot of opportunity and should continue to grow double-digits next year,” Herrero said. “I expect the profitability in the Americas to continue to benefit from our cost reduction and margin improvement initiatives.”On a conference call with analysts, the ceo added that this is the first holiday season Guess will be sold through Amazon Prime, which will bring incremental traffic to the brand.Abroad is where Guess is looking for its real growth.“There is a lot of runway left in Europe and Asia, so I expect a double-digit revenue growth [there] to continue into next year,” Herrero said. “The profitability of the Americas will continue to benefit from our cost reductions and margin improvement initiative, And we aim to achieve our long-term goal of 7.5 percent overall company operating margin by a combination of revenue growth and disciplined control of cost.”The company closed 45 stores this year so far, leaving it with a total of 411 doors, and plans to eventually trim the store base down to 300 in the U.S.Sandeep Reddy, Guess’ chief financial and chief accounting officer, told analyst the company has been “very aggressively renegotiating rents” and that a number of landlords are offering better rates.“Where we couldn't get rents that made sense, we just closed the stores," Reddy said.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)