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.
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)
@badgalriri’s @fentybeauty launch in September was a massive success on social media, powering $72.9 million of earned media value, according to Tribe Dynamics. The brand’s foundation offering sparked conversations about diversity in beauty, launching the growth of emerging influencers and propelling the brand’s support on social media. Today, #fentybeauty won Launch of the Year at the WWD #BeautyIncAwards. (📷: Chema Moya/EPE-EFE)
@marianna_hewitt has become one of the most influential content creators in the beauty space, with almost 800,000 Instagram followers and a newly launched skin care line called @SummerFridays. Today, she was awarded Influencer of the Year at the WWD #BeautyIncAwards. (📸: @sophiachabbott )
As shopping behaviors evolve, the retail experience must follow. Head over to retail experts @colliersinternational’s Knowledge Leader series to read more about the shift in our shopping era. #colliersretail #lovecolliers
@prada opened a pop-up club, called Prada Double Club, in collaboration with German artist Cartsen Höller at @artbasel Miami. Last night, guests – including @youngparis, @ritaora and even Miuccia Prada herself – gathered in a former ice factory where the pop-up is housed for a performance from @wyclefjean. Go to WWD.com for full coverage on all the exhibits, parties and more at #ArtBaselMiami. #wwdeye (📷: @lexieblacklock)
@louboutinworld and @disney are making magic once again, creating a set of shoe designs for the release of “Star Wars: The Last Jedi.” Louboutin designed a pair of shoes for each of the film’s four female leads: Rey (@daisyridrey), Vice Admiral Amilyn Holdo (@lauradern), Captain Phasma (Gwendoline Christie) and Rose Tico (@kellymarietran). The shoes will debut on Saturday at the L.A. premiere of the latest episode. #wwdfashion
Today at the #BeautyIncAwards 2017, WWD will be joined by beauty leaders from around the world as we honor this year's most innovative people, products, brands and places. Follow along here and on Twitter for live coverage from the exclusive event. #wwdsummits (📷: @elizaflorendo)
Exclusive: Beauty superinfluencer @marianna_hewitt is launching her first-ever skin care brand with her business partner @laurengores. Their new line Summer Fridays, which will be sold exclusively at summerfridays.com starting in January, is launching with just one product – a hydrating cream Jet Lag Mask. “We wanted to focus on one product that was amazing,” said Hewitt. Read the full interview on WWD.com. Link in bio. #wwdbeauty #wwdnews
Michelin star-rated chef PJ Calapa marks his first solo endeavor with today’s opening of @scampinyc –– the new Southern Italian restaurant located in Manhattans’ Flatiron District. The upscale yet welcoming environment matches the menu, which includes two types of scampi: traditional Italian langoustines in butter and the Americanized version with shrimp over pasta 🍤 - pictured here. #wwdeye (📷: George Chinsee)