Strong wholesale demand boosts Guess in Q1
26/05/2022
Revenue from wholesale accounts across the Americas was boosted 50% year on year, partly due to the fulfilment of previous orders impacted by earlier inventory restrictions, according to the company. Retail revenues in the same region grew by 7%.
Meanwhile, the European market delivered top-line gains of 14%, followed by Asia which generated only a 1% increase. Licensing revenues rose 23%.
Chief executive, Carlos Alberini, described a “great start to the year” during an earnings call, but also pointed to the complexities of a “dynamic” macro environment involving higher inbound freight and product costs, a weaker euro and increased wages. He attributed the brand’s performance in Asia to China’s covid-related lockdowns.
Plans for the remainder of the year include opening 60 new stores in Europe and North America, in addition to the remodelling of 370 existing locations between the two regions in line with the brand’s strategy to elevate its positioning across touchpoints. By the end of the current fiscal year, 80% of all Guess stores will have been updated, Mr Alberini added.
Co-founder and chief creative officer, Paul Marciano, stated that the brand remains "highly confident" in its future.
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