Guess? Stock

Guess?, Inc. designs, markets, distributes and licenses lifestyle collections of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities.

The company’s apparel is marketed under numerous trademarks, including GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS (GbG), GUESS by MARCIANO and Gc. The lines include full collections of clothing, including jeans, pants, skirts, dresses, activewear, shorts, blouses, shirts, jackets, knitwear and intimate apparel. In addition, the company selectively grants licenses to design, manufacture and distribute a broad range of products that complement its apparel lines, including eyewear, watches, handbags, footwear, kids’ and infants’ apparel, outerwear, fragrance, jewelry and other fashion accessories. The company also grants licenses to certain wholesale partners to operate and sell its products through licensed retail stores.

The company’s products are sold through direct-to-consumer, wholesale and licensing distribution channels. The company’s core customers are style-conscious consumers consists of three target consumer groups: Heritage, Millennials and Generation Z. The company’s Heritage customers, typically aged 40 years and older, are very loyal and have been shopping with it for years. The company appeals to these customers through GUESS and specialty product lines that include MARCIANO, a more sophisticated fashion line targeted to women and men. The company’s Millennial customers are typically between the ages of 25 to 39 and Generation Z customers are typically between the ages of 10 to 24 years old. These two target consumer groups shop streetwear and vintage inspired trends, viewing GUESS as accessible luxury.

Business Segments

The company operates through five segments: Americas Retail, Americas Wholesale, Europe, Asia and Licensing.

The Americas Retail segment includes the company’s retail and e-commerce operations in the Americas.

The Americas Wholesale segment includes the company’s wholesale operations in the Americas.

The Europe segment includes the company’s retail, e-commerce and wholesale operations in Europe and the Middle East.

The Asia segment includes the company’s retail, e-commerce and wholesale operations in Asia and the Pacific.

The Licensing segment includes the company’s worldwide licensing operations.

Americas Retail segment

In its Americas Retail segment, the company sells its products direct-to-consumer through a network of directly operated retail and factory outlet stores and e-commerce sites in the Americas.

Retail Stores and Concessions: The company’s Americas Retail stores and concessions are comprised of a mix of GUESS? retail stores, GUESS? factory outlet stores, G by GUESS (GbG) stores, GUESS? Accessories stores and MARCIANO stores. In 2021, the comopany integrated its G by GUESS brand into its Factory business over time in order to drive further efficiencies. The company directly operated its retail stores and concessions in Mexico and Brazil through its majority-owned joint ventures.

e-Commerce: The company’s Americas Retail segment also includes its directly operated retail and other marketplace websites in the U.S., Canada, Mexico and Brazil. These websites operate as virtual storefronts that, combined with the company’s retail stores, provide a seamless shopping experience to the consumer to sell its products and promote its brands. They also provide information about fashion trends and a mechanism for customer feedback while promoting customer loyalty and enhancing the company’s brand identity through interactive content online and through smartphone applications. The company’s U.S. and Canadian online sites are fully integrated with its customer relationship management (CRM) system and loyalty programs. Omni-channel initiatives that the company has already deployed in the U.S. and Canada include buy online, pick-up in stores or buy online, return in stores and order from store, as well as mobile-optimized commerce sites and smartphone applications. In the U.S. and Canada, e-commerce orders may be fulfilled from the company’s distribution centers, or from its retail stores, or both.

Americas Wholesale segment

In its Americas Wholesale segment, the company sells its products through wholesale channels throughout the Americas and to third-party distributors based in Central and South America, as well as licensed retail locations operated by its wholesale partners. The company’s Americas Wholesale business generally experiences stronger performance from July through November. The company’s Americas Wholesale customers consist primarily of department stores, select specialty retailers, upscale boutiques, as well as select off-price retailers. The company offers a wide array of its products and incorporating GUESS? signage and fixture designs. These shop-in-shops, managed by the department stores, allow the company to reinforce the GUESS? brand image with its customers. Many department stores have more than one shop-in-shop, with each one featuring women’s, men’s or kids’ apparel or handbags. The comopany also sells product to licensed retail stores and concessions operated by certain wholesale customers.

The company’s Americas Wholesale merchandising strategy is to focus on trend-right products supported by key fashion basics. The company has sales representatives in New York, Los Angeles, Toronto, Montreal, Mexico City and Vancouver who coordinate with customers to determine the inventory level and product mix that should be carried in each store. Additionally, the company uses merchandise coordinators who work with the stores to ensure that its products are displayed appropriately.

Europe segment

In its Europe segment, the company sells its products through direct-to-consumer and wholesale channels throughout Europe and the Middle East.

European Direct-to-Consumer: The company’s European direct-to-consumer network is comprised of brick-and-mortar retail stores and concessions and e-commerce sites.

Retail Stores and Concessions: The company’s European retail stores and concessions are primarily comprised of a mix of directly operated GUESS? retail and outlet stores, MARCIANO retail stores, GUESS? Accessories retail and outlet stores, GUESS? Footwear stores and GUESS? Kids stores.

e-Commerce: The company’s Europe segment also includes its directly operated retail and other marketplace websites. In Europe, similar to the Americas, its e-commerce sites operate as virtual storefronts that, combined with its retail stores, provide a seamless shopping experience to the consumer to sell its products and promote its brands. The company has deployed omni-channel initiatives in its European markets, including buy online, ship from store and buy in store, deliver by e-commerce. The company offers interactive content online and via mobile, and are planning to expand to smartphone applications.

European Wholesale Distribution: The company sells its products both through wholesale distribution channels and through licensed retail stores and concessions operated by its wholesale partners throughout Europe and the Middle East. The company’s European wholesale business generally relies on a large number of smaller regional distributors and agents to distribute its products primarily to smaller independent multi- brand boutiques. The company’s products are also sold directly to large, well-known department stores like El Corte Inglès, Galeries Lafayette and Printemps. The type of customer varies from region to region depending on both the prominence of the GUESS? brand in each region and the dominance of a particular type of retail channel in each region. In countries where the brand is well known, it operates through showrooms where agents and distributors can view its line and place orders. The company has showrooms in key cities, such as Barcelona, Düsseldorf, Lugano, Munich, Paris, Lisbon, Florence, Moscow and Warsaw. The company sells both its apparel and certain accessories products under its GUESS? and MARCIANO brand concepts through its wholesale channel, operating primarily through two seasons, Spring/Summer and Fall/Winter. Generally, the company’s Spring/Summer sales campaign is from April to September with the related shipments occurring primarily from November to April. The Fall/Winter sales campaign is from November to April with the related shipments occurring primarily from May to October. Revenues from sales to the company’s wholesale licensed stores are also recognized as wholesale sales within its European wholesale operations.

Asia segment

In its Asia segment, the company sells its products through direct-to-consumer and wholesale channels throughout Asia and the Pacific.

Asian Direct-to-Consumer: The company’s Asian direct-to-consumer network is comprised of brick-and-mortar retail stores and concessions and e-commerce sites.

Retail Stores and Concessions: The company’s Asian retail stores and concessions include a mix of directly operated GUESS?, GUESS? Footwear, GUESS? Accessories, GUESS? Kids and MARCIANO stores.

e-Commerce: The company also has e-commerce sites throughout Asia, which operate as virtual storefronts that, combined with its retail stores, provide a seamless shopping experience to the consumer to sell its products and promote its brands.

Asian Wholesale Distribution: The company’s Asian wholesale customer base is comprised primarily of a small number of selected distributors with which it has contractual distribution arrangements and licensed stores and concessions operated by its wholesale partners.

Licensing segment

Licensing segment includes the company’s worldwide licensing operations. The desirability of the GUESS? brand name among consumers has allowed the company to selectively expand its product offerings and global markets through trademark licensing arrangements, with minimal capital investment or on-going operating expenses. The company has various domestic and international licenses that include eyewear, watches, handbags, footwear, kids’ and infants’ apparel, outerwear, undergarments and sleepwear, fragrance, jewelry and other fashion accessories; and include licenses for the design, manufacture and distribution of GUESS? branded products in markets which include Africa, Asia, Australia, Europe, the Middle East, Central America, North America and South America.

The company strategically repositions its existing licensing portfolio by monitoring and evaluating the performance of its licensees worldwide. For instance, between 2005 and 2013, the company acquired several of its European apparel licensees. The company directly manages its adult and children’s apparel businesses in Europe.

Strategic Partnerships

The company evaluates opportunities for strategic acquisitions and alliances and pursues those that will support and contribute to its overall strategic initiatives and/or will leverage its global infrastructure and network of licensees and wholesale partners. As of January 28, 2023, the comopany had majority-owned joint ventures in Brazil, the Canary Islands, Mexico, Portugal, Russia and a minority-owned joint venture in South Africa.

Global Sourcing and Supply Chain

To support and ensure its social compliance, the company communicates its expectations to its partners through its Global Suppliers Code of Conduct (Guess CoC), which sets the minimum requirements for all factories where Guess branded items are manufactured.

Advertising and Marketing

The company’s advertising, public relations and marketing strategy is designed to promote a consistent high impact image which endures regardless of changing consumer trends. While its advertising promotes products, the primary emphasis is on brand image.

The company deploys a variety of media focused on national and international contemporary fashion/beauty, lifestyle and celebrity outlets. The company has also expanded its efforts into influencer marketing, digital advertising with leading fashion and lifestyle websites and advertising on social media platforms, including YouTube, Facebook, Instagram, Twitter, Pinterest, Reddit, Snapchat, TikTok and global search engines. The company’s smartphone applications provide a unique mobile media experience by combining fashion, e-commerce, personalized product recommendations, targeted promotions and social loyalty rewards to drive mobile brand engagement.

The company also requires its licensees and distributors to invest a percentage of their net sales of licensed products and net purchases of GUESS? products in Company-approved advertising, promotion and marketing. By retaining control over its advertising programs, the company is able to maintain the integrity of its brands while realizing substantial cost savings compared to outside agencies.

The company will continue to regularly assess and implement marketing initiatives. The company plans to further strengthen communications with customers through an emphasis on digital marketing, and through its websites, loyalty programs, direct catalog and marketing mailings. The company also plans to strengthen communities on various social media platforms, which enable it to provide timely information in an entertaining fashion to consumers about its history, products, special events, promotions and store locations, while allowing it to receive and respond directly to customer feedback.

As part of these initiatives, the company has loyalty programs in North America, Europe and Asia covering all of its brands. The company’s Guess List loyalty program has experienced growth in its overall member engagement numbers through the introduction of experiential rewards and unique member content. The programs are also used to promote new products to the company’s customers which in turn increases traffic in the stores and online. The loyalty programs generate substantial repeat business that might otherwise go to competing brands. The company continues to enhance its loyalty program offerings by understanding its members’ interests and needs by strategically marketing to this large and growing customer base.

Trademarks

The company owns numerous trademarks, including GUESS, GUESS?, GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design, MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby GUESS, YES, G by GUESS, GbG, GUESS by MARCIANO and Gc. As of January 28, 2023, the company had over 5,100 trademarks in the U.S. and internationally registered trademarks or trademark applications pending with the trademark offices in over 175 countries around the world, including the U.S. The company considers its trademarks to have significant value in the marketing of its products and act aggressively to register and protect its trademarks worldwide.

Seasonality

The company’s business is impacted by the general seasonal trends characteristic of the apparel and retail industries. The retail operations in the Americas and Europe are generally stronger during the second half of the fiscal year (year ended January 28, 2023), and the wholesale operations in the Americas generally experience stronger performance from July through November. The European wholesale businesses operate with two primary selling seasons: the Spring/Summer season, which ships from November to April and the Fall/Winter season, which ships from May to October.

History

Guess?, Inc., a Delaware corporation, was founded in 1981. The company was incorporated in 1993.