Back to core business: Guess plans affordable denim
Back to core business: Guess plans affordable denim
 

26 Mar. 2013

Guess bets on affordable denim

Guess has recently announced plans to focus more on its historical core business: young-minded denim products at more affordable prices.

This is what emerged from recent comments by Paul Marciano, CEO Guess, while expressing his satisfaction on the company's fourth quarter results, despite the general slowing down in sales and the difficult worldwide economic situation.

In addition to the announcements of the revenue results from the last quarter, the company expects to close the 2013 fiscal year registering -1% global revenues at USD 2.7 billion. Asian revenues showed a 16% increase, European revenues decreased 7% and North American retail revenues remained flat at USD 1.1 billion. A -34% was registered within adjusted operating earnings.

Marciano's comment on the situation was: "Despite a difficult environment we were able to deliver fourth quarter financial results that were at the high end of our expectations. We continue to direct our expansion efforts towards newer international markets, growing revenues in the double digits, in key markets such as Korea, Germany, Greater China, Mexico and Russia. In North America, lower traffic and the promotional environment continued to impact our business, while in Southern Europe the weak economic conditions continue to impact consumer confidence."

He also added: "I strongly believe that the heritage of Guess is rooted in denim, and the Guess? girl looks to us for iconic sexy styles. Expect to see more on-trend fashion presented in the sexy, iconic Guess? style coupled with timeless pieces that deliver the quality and value that our customers expect from Guess?." He also added that Guess had focused too heavily on retail prices above USD100, and that future plans will see an increase of the USD75-USD95 price range products in order to better serve the younger female demographic.

In addition to this, two new managers were recently hired as head of design and of overseeing merchandising, more details on which to be announced soon.

Maria Cristina Pavarini

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