GES - Earnings call transcript Q3 2018

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone. And welcome to the Guess? Third Quarter Fiscal 2018 Earnings Conference Call.

On the call are Victor Herrero, Chief Executive Officer and Sandeep Reddy, Chief Financial Officer.

During today’s call, the Company will be making forward-looking statements, including comments regarding future plans, strategic initiatives, capital allocation and short and long-term financial outlook. The Company’s actual results may differ materially from current expectations based on risk factors included in today’s press release and the Company’s quarterly and annual reports filed with the SEC.

to call like Herrero. to would I turn over the Victor Now,

Victor Herrero

afternoon, Good everyone.

XX% in quarter e-commerce, today, X% above earnings adjusted you in the of I quality reduced within continued XX% by our As up driven result saw our of release adjusted margin and organization. October share of we from guidance. warm elevate the openings. U.S. made with our sales constant our the range while discuss guidance successful was our for new and year. an and Starting we merchandising the initiatives, came in to earnings you U.S. raising for we constant and quarter implementation progress have that that guidance, heavier currency, increase products. in showing in finished of our and due can are The store sales so despite revenues to grew for AUR including strategic comps, the currency, comp Europe, This seasonally all will our dollar operating initiatives in finished per outerwear better in XX% that growth momentum reported understand by why lower the dollars

Our Zalando. site, by continues as e-commerce business with to Web and in powered our well partnership own Europe grow rapidly Auto as our

operated in in on Europe stores directly a XX XX growing opened in and Russia were we turkey, of basis. quarter, which the our During markets. net fastest

operated Poland our in opened first stores Germany, owned also and in Italy, store and Spain, UK, Greece, Hungary. We

wholesale in The an book strength wholesale the increasing ago on with order European the the of also channel. at season outlined Winter the years acceleration consecutive growth than more digits. reflects progress Fall order from two mid-teens the our business, XXXX double Summit currency, second digit is XXXX book in the now low to business. strategic We in are constant the closed initiative Spring our European increase drill double wholesale of revitalize of which This I

of expected basis related points in the once year year distribution by consecutive fully as cost is this segment by distribution center to operational center for first fully the expansion was a of center margin the us. of be in the startup We to our four main expect planned. distribution of expansion, transition end magnitude contraction new margin to new quarters quarter European and quarter Following is to margin resume margin the this initially the The of Europe next timing Venlo. driver quarter. The contracted XXX the instead behind

to Moving Asia.

constant were new Revenue in revenues growth XX% in and including X% quarter region in e-commerce, was that U.S. and by X% store dollar currency. U.S. constant and Third in openings. driven dollar comps, up the in XX% were by up currency

and Chan-chiang During the Harbin, the and Northeast, We opened basis. directly and opened stores in -- stores and the we east Hangzhou the on northwest, operated Chongqing net Shanghai, west. center [Xian] in in quarter, the XX a in Suzhou Wuhan in in in Xiangdong the Changchun China

In addition we for across store presence a see digital footprint country, potential China. to our strong in the developing big

rapid growing with a is Our pace. marketplace Tmall partnership at

marketplaces we as such all parts connect also also and the VIP.com. about are media marketplace platforms, excited communication consumers WeChat, very of who Weibo. and social with new high through We engage very partnership brand with our Both number our of with country

brand there. have now revenues in prior Australia through this quarter, operate including we the Importantly, recognition we where stores our a market our segment. market are this directly and our beginning Asia distribution from to the Australia began already we strong in is

have experienced the pleased improved are XXX the making points in where basis expansion segment fourth quarter, Asia We the margin in we Asia. especially margins in operating consecutive that the quarter

the see, major XX% U.S. negative a Americas executing business revenues you in the in and Rico. million includes This including Asia. down impact constant e-commerce in Florida comp for As for Puerto XX% in quarter, our XX% can hurricane In U.S. from build X approximately Retail, and on very the well X% to impact dollar on in initiatives -- decreased revenue currency. constant disruptions Comp sales, quarter are XX% strategic and were in and currency. X% we sales Texas, of Dollar

in the and the quarter. in quarter IMUs, point this we on U.S. better in Americas basis lower we branding our a and improvement Jonas, of result margin store in made rent XXX Rocky Importantly, in we Camila profit with to operating the despite very achieved closures presence a partnered be and sales quarter. elevating through with as past continued Joe the brand improving all Meanwhile, great on ASAP markdowns, on progress the activities comp our negotiated of endorsements who Cabello, decline us during celebrities' focused reductions XX%

are just about already we new This partnership out initiated excited Going in we digital present our online store buy This capacity strength on with shipped as associate the the forward, up initiative. quarter all also to gain directly incremental benefit well which past improved rolling This is holiday ship the presence in-store platforms. jed.com of by online further in we order We're pick as J'Lo. Guess store Lopez, addition both positioning Prime to the first to having omnichannel to our graphic very is Amazon initiative. functionality to a the in from season digital Jennifer the customers' access the on building batch, home. buy and us be from store our through place where carrying

influencers strategy. key Snapchat, platforms, Twitter social is of a Instagram, who a with our on digital including multiple strong Facebook, and part partnerships have presence Our core also digital

participate pot great across us month, venue ComplexCon time. melting of the pop ComplexCon Finally, excited a to and earlier culture, showcase and a was this were brands. art, expression the in creative for for we to is really for first talent music our

Company the our is confident Sandeep. concluded revenue growth One future for there to we of why to company X.X% long goal control this overall a of this Company, margin achieve excited the And we future expect Europe -- really combination quarter, of to see; and Americas next is point, digit in improvement repurchased and we double of and I operating of what profitability cost our left aim so term XXX,XXX cost the disciplined should continue peek cost. runway I'm into the Asia, recent a margin lot reduction and growth from year. million in roughly is The initiative. benefit continue I in by revenue control a So of $X the shares our and as into of last

Sandeep Reddy

good you, and Thank Victor afternoon.

to Please metrics. on During this comments conference reference GAAP certain reconciliations today's non-GAAP or for of release earnings call, our such measures. descriptions adjusted refer

like of Third compensation. Total in in quarter higher of basis based I consecutive Company IMUs, XX.X%, X% percentage constant to driven by of prior revenues would impact dollars points basis were and mainly versus sales, the a increased $XXX partially million, European costs distribution offset with XXX X% new higher the XX start-up highlight from of increased this driven by reset in currency revenue SG&A, performance fifth center as Venlo. was logistics occupancy year. points up gross mainly by our negative related deleverage our that margin to to U.S. growth. of quarter

asset charges impairments. third $X to related recorded quarter of we the fiscal During impairment of million non-cash XXXX, store

with the as for improve charges; in as quarter, landlord by America; the agreement rerecorded profit our driven them, an in of efforts cash North of termination advanced our America well future Additionally, $XX restructure part $XX to million rent. on as primarily during North to agreements our lease million we XXth lease

of this our less performance our than last profit operating additional primarily driven the finished release million basis XX outlay today minimal press payback versus margins from margin by operating operating for three the compensation. down expect refer we impact call, was X.X% Please XX% currency. third million cash As discussed aforementioned by and segment. and years. to Adjusted information points on in year, Adjusted adjusted at cash from for profit the last for quarter the declined based $XX $XX on on reset operating

as rate lower down above in last guidance finished per year’s third our increase high Adjusted third earnings last $X.XX This compared diluted of was quarter The quarter share earnings X% quarter. year, was the represents higher experienced end share per at countries. to adjusted tax of and tax Our in $X.XX. of adjusted earnings minimum. currency diluted XX%, in impact earnings we the in XX% share per from

inventory versus European plans sheet. and quarter. $XXX Asia is constant and in in X% on the currency, the constant partially growth last Accounts growth million, U.S. in in same versus currency and in where the to primarily position significantly by our and the U.S. Inventories the XX% million, improvement is Europe dollars time. driven wholesale balance year prior sequential Americas, dollars to receivable marked increase X% in X% currency revenues. year. up than $XXX in revenue This support healthier by driven Moving decline constant were another inventory at up in their The last inventory by in offset is was

key since cash at repurchase forward year had free million. million, year’s sales of prior the compared the $XX payments last of previously was having mind the We the in free board. of approved shareholders the well third cash good $XXX quarter. $X and to million primarily million cash quarter, equivalents debt third to million with repurchases $XXX we plan a Cash we holiday as the was dividends $XXX $XX versus cash negative year. quarter $XXX align the that positioned this the North and to compared share This to entering share American progress million the million Through million quarter, end made the $XXX with cash our still by in landlord $XXX year’s receipts million $XX expectations, is returned after available in quarter in have We Keep last the includes end discussed. $XXX year. previously flow less ended flow last million quarter of and of better throughout to Adjusted year. during million are

our in the on to for quarter adjusted guidance any included $X.XX $X.XX the we I EPS. charges. results supplemental the quarter, for the fourth updated the on should into adjusted the in outlook EPS range year segment impairment $X.XX point first raising Moving for attached of guidance our far our Also, to revenues and the are XXXX comp have to fourth to our that $X.XX the guidance. we a in for so in asset by the earnings of sales an fiscal company of and table not nine range is total does out release. and to the visibility from months Based year assume of

guidance our the XX% Europe than adjusted improvement and offset operating the of of end top weakness the more the margin in the is in to as Americas expected for year basis impacts, and currency Asia adjusted Excluding business. XX business Retail EPS points growth reflects strength

For XXXX, the by driven we for Americas in X% expect by an expected the fiscal X to on to expected will the currency fourth growth At Asia, in percentage X% we expect in revenue up rates, decline constant the exchange and strong partially currency, prevailing the business. Europe growth consolidated quarter a be offset quarter. Retail point roughly revenues for tailwind the be of quarter

center to Our gross IMU temporary performance move compared due expected be our cost distribution initiatives, last the pressure be Europe. to primarily from new to to supply to from reset compensation. up up rate chain to based by partially the related a year, offset to distribution due of The our SG&A is margin is in expected improvement

X% share of an per to with planning from tailwind and point $X.XX basis share per buybacks. operating does and the planned any quarter assume $X.XX an for margin share share are the between range is further currency. not We Earnings per in XX X%

top currency, XX% our basis for increase Excluding guidance in quarter end the XX for EPS reflects increase of adjusted the quarter. points adjusted and margin in the operating

XX%. quarter the be for fourth rate tax estimated is to adjusted Our

X expected should be rates, revenues consolidated and tailwind in between stores percentage constant that Americas. expect up consolidated we point we currency. the roughly prevailing closing increase in be after noted many year for estimate in on year. It the X.X% will currency revenue even revenues that to At We for growth the X% be exchange

$XX and be to is gross the in rate improvement is based year, million is in new IMU expected be margins cost the by full partially reset year improved to SG&A increase move to distribution for for up offset previously. expect performance this compensation. million the the Americas announced IMUs related up to temporary improvement due the to in distribution the The due to of $XX Europe. But both center incentive a the For to we in Europe. The year from updated we

adjusted year XX%. the Our to be tax is for rate estimated

per an planning impact Adjusted points tailwind earnings of XX X.X%, our foreign estimating rates. the roughly operating margin Company's XX, to in remain are and the $XX as We including basis $X.XX million to term and from XXXX. The technology $X.XX remarks your between the guidance Europe questions. is Directors of currency share expected open per X.X% invest of per currencies that, the $X.XX adjusted is roughly for $XX share roughly planned per in and of expansion the assumes the growth. the year infrastructure of share to payable in a guidance earnings the range per to for on of and will currency CapEx The range to tailwind up support includes Board share. quarterly $X.XXX our to call shareholders Asia, that has and million I of continue and our record at conclude dividend With we retail long December approved close of business share.

Operator

Kernan question you like comes and from John go Thank our And Instructions]. Company. from it Please [Operator ahead. Cowen looks first

John Kernan

below there guiding the a basis you're any And high third constant it on acceleration in and in just shift am significant third quarter showed guidance currency Europe, I Is a it you there start your like on quarter. there? to teens Europe, to the constant for came looks little in I basis, versus were currency going in a where growth that. pretty believe

I'm wondering And and cost for there the fourth about should the just then European Thank we think operating anything given you. the So was around? moving how margin if quarter moving distribution?

Sandeep Reddy

hot a from all, margin of out it think a the was European first because month drivers was in particularly was of October remarks John, tough Europe. called one in prepared unseasonably perspective, his that key I Victor

a saw a that Fall Winter as product, So impacted and we carry result outerwear downturn and comp. in the our which significant a sale of AUR higher

look October. impacted were year end sales have reason. were at it the So But during quite was the quarter, that related. weather of we actually since when really significantly for Temperatures specifically cooled the full where things really at, and

expecting at we margins look we're where next to And just we is from because margins center margin year, and of be us. during impact in if other couple we is what super there're that going book starting book covered if that We've so consecutive to the more just was distribution we think the talked when QX. seasons Spring have 'XX, QX 'XX. anything And maybe a feel that But there a Spring Summer to the that don't from I we look quarter accelerating quarter digit a center and now, wholesale you, into there should sales the trouble we expansion course happened at we feel it's of there's go to move retail we through confident the startup distribution about; also back look remarks. costs new specifically the again the prepared growth perspective, into confident ended And past impact. you get double Europe. the incur much for bit And pretty transition of our got were timing QX is you in we up, we're forward to in our in timing going Venlo, that one like is a at where Summer QX ships that to and impacted once overall, just getting remind that is two of things;

quarter for week, our because to impact things so XXrd to the It bit together, in QX to the that revenues as our timing acceleration of pretty you help that of the And in like we in a the little acceleration it includes wholesale the include think well; some expectations business a relative long Europe QX. the trajectory retail and feel fourth material reflective where have a from includes so going term all we book. QX that’s very put is. And are that's also quarter on of

Victor Herrero

to all that this less in now in that mean want market, I add more our other European they we're the XX optimistic to markets moment. where I quarter, market lease And assuming I'm about line performance future was at the they others. very this the were in market. or on worse in or comes third not performing in There doing than is the

performance consistent the So has markets. quite been other in

marketplace good have with I think we they’ve performing Zalando As and well, well. been Auto very a there that

open And e-commerce XX XX performing markets. to we Our year Europe. for also around also be this been And we has stores of open stores going during -- five significantly those will well. us are channel out new in

it's European year. the next of build extremely I’m markets performance the in So going optimistic how in to our

John Kernan

in Clearly, a Asia there lot is and of Europe. momentum

North on Just down the good despite it’s America. shifting see losses to in comp. you decrease town down year-over-year, store to fact, the American were retail see the It’s business North to the good count came

wondering of store into profitability about next should powerful we year? these losses it’s pretty should for closures wondering, Just little magnitude how Company’s how close I’m stores. door ’XX? control into just fiscal overall overall more to the think closures about think more we bit Obviously, and

Sandeep Reddy

think inflect. we talked the where sale door expected about count future count about really we’ve when and trajectory to we talked if XXX John, get I door to, doesn’t

think that don’t is there I to a change number. So

should Canada are, quarter we where south only this because we’ve U.S. and have year. so stores expectations XXX the given ended and with up XXX the closed far stores So we end that XX year, we we this of the in

that leases optionality plan next like not closer so and And we have, just in all we of year. year coming up optionality lot have this are we a the will store have because

is stores landlords. to a And We’ve recent store those in next of have that margins it’s of on bit we’re perspective negotiating operating the profitability. year gotten if in them. and reductions, close the But last early with really year most it’s many we’ll the pretty it that’s the saw where actually call the Star stores hard target is out very for quarter. what’s got John those we how We’ve a playing And hadn’t little have moving see the different negotiations rent closed bit been you exactly the rent that we’d because in But good of North process where too part you reductions having with half closures. so, from stores. number

We’re for been go going other profitability sure whether IMU matter improve make what and to into closures that in improvements and and where and the that very a Americas. ourselves two is inventories drivers, we seeing store the we’ve our negotiations but with we’ve talking we’ve clean no the along rental importantly, about actually are gotten year which all the most been position,

and as lot that exit confident lower we And margin quarter position lot much which into of came continue markdowns holiday we are find ourselves the of clean-up. because or really move is quarter a the this you past a season. we So And year. the improvement a the and is saw this we tailwind as QX, in from to a markdowns, expansion so that be end we’re

John Kernan

one just can more sector. I to it Asia relates in question sneak as If

You given obviously lot your of relates to it knowledge have a experience. that as unique market

you, next improved head and Asian seeing, being you’re the you’re profitability. wondering just the seeing Asia is that how confident top-line we in as inning here how and year? are brand in acceleration in both into the positioned I’m market Guess what in are the and and we What So

Victor Herrero

same Yes, Europe. in attitude

next for optimistic year I'm performance in our about Now, very the Asia. coming

is be may that know think a we'll surprises -- as and Korea mature we Going and oversee you been seeing a market stable. more we've quite don't don't we any specifically, lot. and

have stores in XX Chinese, during actually those bit going you So we let the Basically, all are tier China. me or taking our in in than stores we And a will first we -- opened cities, And now little representation basically, quarter. cities four are are tier be in or in on XX as or above more stores considered tier to my cities and XX -- you tier mean, those concentrate call China. proving cities; Shanghai X not third XX million Mainland I consideration I'm told Shanghai, even in open Beijing, into only fluent that but second they only those cities not right that are cities people. Beijing cities are that considered I

footprint brand in So all is more things to in order the important are to market and this strong very relevance. have achieve a

we've the e-commerce partnership In have that, the years channel addition and half. to last channel. two Tmall with e-commerce in been for we And

we a I have great partnership them. think with

will and future. good This the partnership XXXX, and very the for quarter continue the next we have experience I for is And with think I very them. coming that it think was us and partnership them strong for we

with As the actually an well us that this in is China are China have another we helping we brand is this imagine exposure important to VIP.com and thing. of and But them. happy the as marketplace well quite partnership elevate is in

want I a very we that about building over say that China there. infrastructure strong thing are Another is to

mentioned need I that develop. pervious you my call And China in a to order think I people very develop or this in we have and thing, talent place. to the right right mean are to market, important the the the really I Chinese is As in because in

are to well big digital also trying that I WeChat, some strategies local to we we portion working endorsement celebrity doing we we working endorsement. are Weibo, want with you with also really a As are or celebrity and tell are

mentioned been at why in the successful a we've foreseeing So following for basically and story following initiatives before moment And on consistent we I China. us in those several as China reason are because basically I great initiatives. is this very think I we are

Operator

question Please from Our comes Omar Evercore from ISI. Saad ahead. next go

Omar Saad

stores? is we Sandeep on improved looks think but U.S. as unprofitable with an then can reductions the there still chunk And about margin, U.S. the underlying of progression margin closing about we there, looks opportunity? versus retail think what negative question like start couple there I Thanks. like the inventory segment a I Is Can a how basis Sandeep, we follow identify the of have control versus do dynamic ups. for XXX-XXX rent territory big points.

Sandeep Reddy

So process in answer what I mentioned margin retail think in to earlier I of IMU starts I in improvement about supply probably while and John talked a that's the with we been year. is for the for there's four terms on And think big that the strategy one, Americas out chain IMU Victor quarter. drivers, that's I ago. couple through think basically and my is the of definitely really this that outlined paying years that And as we go actually

I QX; piece. of been tailwind. of for talking a the decision; think as big lot of where get we one thing see piece back part is we rents that's those we negotiations paying in and plan We've where past less been the landlords with So right right last markdowns this improvement made could that so brand; we on since improvements it’s a third year; the clearly Then and to much good closures what that rents management. stores; very couldn’t as a renegotiating other has aggressively we point I closed think number profitable tightened landlords bucket in are been to a store the rents the operational we've is where in fourth, we've were think the the sense, critical quarter, situation and much beginning be go now; end and going healthy inventory our working is possible; conscious from really so to position with; we're and just of which up we're a as got that we is we're really was promotional; the by into the the about

with So of all what the profit endorsements, going both get spoke enhancement the lot and fronts. where we're working drivers by The initiatives, think offset but forward. doing though different comp. will And much all revenue a they're working we're ongoing The to levers the I Victor negative be that celebrity about is is initiatives going digital always how that's extensively really of are talked plan we're we of four improvement key these on margin improvement, on.

of both it get sustainable actually a we working we're where place improvement a ensure on sides to from to the So over Americas. profit that time,

Omar Saad

in product on with we're women's your the jeans and you more you some change a some question days your new retailers seeing in fashion that to are in do leverage or the of that then trend might be points There years And Is -- fashion, around stores of of seeing after encouraging seems interest some more a some apparel. the and early guys hearing are data fashion from trends encouraging department think there something straightforward And you category. flow? that business? there's in for be skinny fashion to the marketplace more product emerging,

Victor Herrero

time, sexy so and with ourselves which a And company. same values, DNA fashion. lot called a is at But definitely driven we Actually this are I independent. strong truly a logo good a of the consider fashion because news, seeing values,

for fashion lifestyle years weighs as more which seen operating our have and half. a the We well last been two we've

the categories more product we what basically that the the portfolio product are about it’s means about And or because categories outlook. improve that not total you saying, last years. were been definitely So only trying encouraging, the we've it it's working it's two to for how very our

Omar Saad

the kind reads some marketing on How you how going activate any early of of Camila, with for assets you're about using. One that's influencers to last about media, the question you’re talk these J'Lo how perspective social partnership resonating? thinking J'Lo, the can you're

Victor Herrero

excited But same quarter. We at be for will the because next biggest about endorsement all are I now think the J'Lo this one right celebrity quarter I particular very this the and for definitely influencers, mean, it’s only not for with really quarter, partnership activity. well. fashion Joe different are in we bloggers type been influencers Jonas Carvalho working Rocky, And in we’ve new regarding A$AP quarter, as and influences, Camila with also with with with third of time,

for to So are customers have I way last and the been it’s with things our to through what we trying mean through year in to customers, is talking half improve is portion kind the about all interact doing not that or millennials, new media important try order to or in very through of attract that millennials new chat year these Facebook, the Also, Z. a we Instagram, through big YouTube. Gen trying social we’ve

basically in kind of not that Amazon or really it’s in really with to plenty with only trend push Jet.com. activities this thing All are So marketplace of I also the I you think is on we lifestyle. are one working saying in all and more on a this are and e-commerce that more it’s order are be way also of because product there be -- huge doing, Prime kind to we working we to batch, on that mean, I becoming was more relevant

think product daily endorsements celebrity big also every, push is and a now we’ll have to initiatives by on on our basically, And social on basis. offering media. have I improving a digital and

Operator

Our next Please Dana Telsey question go Advisory. from ahead. Telsey comes from

Dana Telsey

margins the profitability you Asia, do as you. free you the and is that omni-channel shipping what different you have Europe, in you it’s see see initiatives, Do How And other evolving anything of think versus As Thank and the is see initiatives? performance the impact the how you that think omni-channel stores? in on metrics what whether it’s of Americas. progressing? in online you

Victor Herrero

we store, that add is add in trying our we to pick-up to going capabilities for much the e-commerce are buy example, to feature are very to omni-channelizing interesting to Dana, online site like of trying basically kind possible, our the a Web capability. as What do and as is

the we I important or have we is very do particular to the we channel, And retail that shipment do to the I free is also that consistent of coming. has are I adapt that in mean be activities initiative, the e-commerce, development to we Italy media. think if promotion whatever to have of channel any on to of have implementing and either what type on very a all social on the wholesale push think

doing one thing. to develop we So particular everything I another combined. thing has mean, not been cannot And and

consistent this not only the in that in pickup and pick up is are in are all activity every be very one be in to have we basically U.S. as important do, we online And to I first where one use of and are the of do also America, any store, represented very in to first channel in very that Having important. think the distribution what trying then Asia. the buy the well is to Jet.com. in marketplace, the channels as or Europe is promotional is be going to going we that, free basically and a U.S. to in this said to the

first and be this a one bit I continue think first. on not to trying be to we not the should developing little

aggressive, it. try. be a correct try try Let's to make let's mistake We let's to

Sandeep Reddy

just up on. you the this And focused think, on following profitability about that we’re continuously that I asked is something piece Dana,

to important to consumer they want we buy the need buy. I thing think wherever is to offer the options

the more so is omnichannel. to more world And and migrating online and

to the those freight. customers, significant to the of So of cost of improves. there inside do cost profitability as e-commerce wherever continuously operationally shop. freight ensuring where the that down meet the that we disciplines of going a done be look company a to down can we’re drive want business company, part they serving doing our and business to drive operation consumer just That manage we big we so the we're And everything that is are

Victor Herrero

and the have is, go the Dana, the More interacting they customers, whenever stores as example, store, it we in check well customers the more on with for that you the e-commerce. we to price example, you for will and

think Americas, only pricing, in alignment So not worldwide. has it's price very important be to the to align I

Operator

Our Bridget question ahead. Please from comes Morningstar. from next go Weishaar

Bridget Weishaar

first there a conscious? discuss partnerships the Is second this for disparity? and bit so a you like next great the bit talk lifestyle, socially message that's looking And and generation healthy social little it is strides you're questions, looking consumer? more Lifestyle? it is brands about through you what your retail to and research What's discrepancy between done looks build making more you've Can Thanks. be the performance. presence. bigger American seems picture, looks then large it resonating media these wholesale Could what Two the lifestyle like a is to little of with it in

Sandeep Reddy

And team then is said was of the from calls, Americas thing I'll can is, retail. Americas’ one the next Retail maybe different and I'll we've weight Wholesale. first and tag But versus first the Americas’ really the take the probably wholesale within one which the on countries I within one. countries about probably one different Victor previous on weight the very of repeat again Bridget, different

in And from as States. to so well Canada into if you Wholesale, I think United the -- Canada. Americas Retail is Americas’ Mexico, is there as driven business But significant primarily by addition go U.S. a and

I can't Americas to the Retail. Wholesale look very a And as so comparable you really whole, Americas it's think, directly at

see by the wholesale which is trends a States. over way business. you reading through and is affect playing about we think too. well very definitely impact United that's challenging and doing about place talked I because And the Canada versus are and so that the that there hearing the There we've different Mexico And mixed previously. the pressures is market about us The we’re in

situation into and the sure unhealthy we is very position, carefully inventory markdowns. don't levels, managing partners get which we're so making And which with our drive

Victor Herrero

Jennifer And the now which particularly think we or kind also rising regarding it’s established artist. that is the which endorsements, person social the I even a have two millennial for Cabello, that also star like years product is and mean celebrity appealing through I a our think identity. second customers new a appealing lifestyle not And think well media half, Lopez, Camila with I your to customer, been to star. a very implementing because very are way is I we regarding the it’s strategy a And we through last we've have them, and the new right interacting this question, of

very of both or on the type this doing balance we think to combination push I paying are customer; are also back. appealing new between So also that initiatives our is all digital these

Operator

And over for questions I time. further concludes remarks. this This it showing the turn at question-and-answer will no to Victor [Operator closing session. back I'm now Instructions]

Victor Herrero

you. Thank

Operator

concludes Thank participating. today's for Thank This you, you call. gentlemen. ladies and

disconnect. may You now

Guess' (GES) 21 Nov 172018 Q3 Earnings call transcript