GES Overview

One of the nation’s most recognizable name-brand clothing lines, Guess? Inc. (GES), is primarily known for their highly sexualized and risqué advertising campaigns in the 80s and 90s. Guess’ advertising began in 1982, with their iconic black-and-white campaigns debuting in 1985.

Founded by the Marciano brothers, Paul, Maurice, Armand and Georges in 1981, the quartet were born and raised in Morocco, while spending a majority of their lives in the south of France. While in the French region, the brothers were influenced greatly by the culture and the style of the country. In 1977, they moved to California and scrounged for seed capital. They found what they were looking for by way of the Nakash family, owners of the Jordache brand.

The company’s first product introduced was a three-zipper style of jeans named the “Marilyn,” after the well-known bombshell Marilyn Monroe. The jeans, a “stone washed denim” style was a hard sell to department stores at the time. Fashion critics were also skeptical of the new product.

Not until December 1982, did the Bloomingdale family compromise with Georges to stock two dozen pairs of the “Marilyn” jeans in their stores. Within hours, the jeans had sold out, setting the stage for the Marciano’s to continue their fashion careers.

Throughout the 1980s. Guess became one of the most prominent brands of the decade, becoming one of the first companies to create and provide “designer jeans.” By 1983, the company was providing a full-line of jeans, primarily for women. It wasn’t until a year later that Guess would create a product-line for men.

As a designer, marketer, distributor, and licensee of lifestyle collections of apparel and accessories for men, women, and children, Guess’ product-line includes such items as denim and cotton clothing, which encompass jeans, pants, overalls, skirts, dresses, shorts, blouses, shirts, jackets, and knitwear.

Known for clothing that reflects the American lifestyle and European fashion sensibilities, Guess also grants licenses to manufactures and distributors to provide a wide range of products, which include fragrances, footwear, swimwear, handbags, kids' and infants' apparel, watches, leather apparel, eyewear, jewelry, and supplementary fashion accessories. These licenses are provided for the company’s products to be sold in overseas markets including Africa, Asia, Australia, Europe, the Middle East, Mexico, the Caribbean and South America.

With their core customer being a style-conscious consumer primarily between the ages of 18 and 32, Guess sells their products through retail, wholesale, e-commerce and licensing distribution channels under various trademarks. These include Guess, Guess?, Guess U.S.A., Guess Jeans, Guess? and Triangle Design, Question Mark and Triangle Design, a stylized G, Guess Kids, Baby Guess, Yes, G by Guess, Guess by Marciano and Marciano.

As of January 2009, 46.7% of the company’s net revenue was generated from retail operations, 14.2% from wholesale operations, 34.3% from their European operations and 4.8% from licensing operations.

The retail segment includes operations throughout North America, while the wholesale segment includes operations in North America and within the Asian markets. The European division encompasses both the wholesale and retail operations throughout Europe and the Middle East. Lastly, the licensing unit includes the worldwide licensing operations of the company.

Today, Guess Inc itself, operates a total of 425 stores in the United States and Canada and 96 stores outside of North America, with 61 stores in Europe, 24 stores in Asia, and 11 stores in Mexico. Meanwhile, the company’s products are sold directly to consumers from approximately 1,057 locations throughout the U.S. These include more than 370 shop-in-shops, which is defined as a selling area within a department store that offers an array of products, while incorporating the company’s signage and product designs.

Internationally, Guess licensees and distributors operate nearly 600 stores in more than 70 countries, not including almost 70 licensee operated jean and accessory shops located in Asia.

Guess competes with The Gap Inc. (GPS), Abercrombie & Fitch Co. (ANF) and Polo Ralph Lauren Corp. (RL).

By BetterTrades