Guess Sets Expansion on International Markets and New Brands
To beef up sales, Guess? Inc. is casting an eye toward expanding in Asia, Europe and South America while working to make its new Marciano stores more competitive in the contemporary womenswear market.
Marciano is a new store concept that Guess developed last year to go beyond its tried-and-true juniors and young contemporary customers.
“We have been experimenting with some brand extensions to reach new markets,” said Carlos Alberini, president of Guess, one of Los Angeles’ largest apparel companies. “This new [Marciano] brand initiative was launched almost a year ago. The initial results of this test have been very encouraging.” Alberini was speaking before a group of stock analysts and investors on June 30 at the 15th annual Wachovia Securities Nantucket Equity Conference in Massachusetts.
Guess, he told the group of investors, is trying to expand its brands, starting with Marciano, a 10-store U.S. chain that carries contemporary women’s clothing. At the end of the year, Guess will decide whether or not it will expand the concept.
“We think our new brand extensions will bring in new customers,” said Alberini, explaining that in the past Guess has targeted the 15- to 29-year-old customer. “With the Marciano brand, we are really reaching a new customer base, an older customer who is more sophisticated and [has] more disposable income.”
Guess also recently launched a small chain of accessories stores that is still in the testing phase.
Currently, Guess owns 298 retail stores in the United States and Canada. Another 253 stores worldwide are owned or operated by licensees and distributors.
Retail sales made up 68 percent of Guess’ revenues, which in the last 12 months totaled $791 million. Wholesale sales to more than 950 department and specialty stores made up nearly 16 percent of revenues.
“We think there is room to expand our wholesale business,” Alberini said. “At one point, we had a presence in 2,400 doors at the height of our wholesale business.”
Alberini talked about expanding Guess’ flagship stores in Europe. Currently, the company is building a new store in London.
The apparel maker also sees growth in China, Japan, Mexico and South America, where it is pursuing joint ventures or business deals with licensees and distributors. —Deborah Belgum
