GES - Earnings call transcript Q1 2025

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Operator

Good day, everyone, and welcome to the Guess? First Quarter Fiscal 2025 Earnings Conference Call.

I would like to turn the call over to Fabrice Benarouche, Senior Vice President of Finance and Investor Relations and Chief Accounting Officer. Please go ahead.

Fabrice Benarouche

Thank you, operator. Good afternoon, everyone, and thank you for joining us today.

with Neubrand, Carlos Chief today Officer; Chief call Markus and Financial the me Alberini, are Executive On Officer.

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

non-GAAP adjusted release. found measures. certain and reference of these be reconciliations also can descriptions in will Comments or GAAP measures earnings today's

Now to turn I will it Carlos. over

Carlos Alberini

Thank fiscal all XXXX you, for you call. QX conference our for Fabrice, quarterly thank joining and us

against objectives. strong strategic to is The a and year of progress a start and important operational, are pleased financial we off number to significant report

operating an our financial margins, and quarter, quarter enabled of us well both our the sales line. expanded in in deliver the favorably executed expectations of our that bottom results. terms and which each segments gross impacted teams first operational From and for revenues, per results share earnings to We exceeded grew which during the perspective, of

front, to our first-ever brand, our U.S. have We are the company's a new we the Guess launched agreement completed a renewal secured and transformed On acquisition. Jeans, of strategic licensing excited key distribution function.

refinancing in more a dividend, minutes. foundation will value for obtaining Markus these a deliver special and our on and expanded repaying made also financial convertible credit rewarding further strides facility. financial great them including our We highlights few an our share notes with strengthen to shareholders, just XXXX and

since X last just And a we in spoke. of achieved little we more than all months this

myself, their contributions. talent of job the results, our want them for experienced for of and I teams recognize well done which dedicated and around to outstanding On behalf reflects these and proud of this are to take and thank Paul skill opportunity the team members. world our We a

results the product resilience model and highly cash our our of and of model reflect These geographies the to helps across distribution. of business also predictability categories, channels our brands of flows. business benefit and earnings and the enhance strength diversified That

The & in our business portfolio years serve to to our company's should and further rag our even diversifies addition enhance bone the to of growth come.

first the $XXX by grew quarter, we For revenues million. X%, reaching

posted I As increase, segments with ago, quarter. moment licensing of Americas total the for contributing operating a the wholesale the highlighted one most significantly our a each segments to and growth revenue

resulted in the headwinds. the April in than rag Retail more continued conversion and Our modest that comp segment line top the to deliver traffic with and pressure Guess? in Americas in Though has sales able we were declines very & business face that with revenues, growth. bone's to challenges offset of addition

bone, starting basis, the up and core which & revenues in of consolidated April, versus currency. the the last a for growth rag in Guess? began X% Marciano year generating constant addition consolidate to the drove On we quarter with businesses

addition to performing expectations line fantastic Guess? has are bone the with we the which & Overall, in been rag with business, portfolio. our and is a pleased

managed well expense control tight team Our careful inventory the with and business management.

point Our levels, and a inventory management gross increase in disciplined a X% a inventory of level approach for full price reduction Guess? margins and XXX higher to quarter. the drove Marciano selling basis in

the for we the business, seasonality the had an quarter. of anticipated Given operating loss

only per and loss adjusted in loss $X an However, adjusted a operating that million anticipated half, we share. $X.XX reporting cut diluted loss

headwind. posted deliveries, increase by of currency. continued delivered grew though, Let as in currency reaching a million quarter. growth, Most In constant comps ahead our some both expectations. in masked X% Europe, and business European regional we for double-digit was me of wholesale highlights momentum the our The we revenues, $XXX offer a strong in significant retail

mature with in and and performing performance jewelry markets the well broadly Central Europe, handbags, Strong travel East. best. the tended based the in performed product markets North was our fragrances. women's accessories business and driven accessories, while to in of performance Southern The be softer Our was healthy by business

and particularly Our solid strong, driven women's business in well, apparel knit by demand was wear. tops, business our sweaters, active and denim sweaters tops, knit the for skirts as increases men's posted and

reaching We in challenging businesses, In and while increased our Retail, Americas the activewear with women's both has in retail and our remained travel accessories. handbags, sweaters consumers categories. apparel, especially revenues U.S. spending. Accessories and outperformed Across remaining fragrances the watches, X.X%, best-performing environment saw roughly declines $XXX the Canada, cautious men's and were million. their

and environment working drive drive actions, are marketing trends to business. about in current this feel and including We have to more assortment our been online. trialing product improve opportunities and through promotional navigate improvements and business both current evaluating investments, We different in-store good the

was bone shipments business Wholesale mainly $XX Mexico. from as strong and the rag by & Americas well Our as in quarter driven million, grew growth XX% to

revenues Asia, well, And revenue $XX to increased X% performed extremely our million. million. licensing a to In XX% finally, business delivering of increase $XX

have driving initiatives objectives business. our across We key in for other delivered on quarter our strategic are earnings to the pleased addition to

regional started and Guess? expanding XX years successful platform powerful we since the the then, management have business. and vision been Growing foundational a Paul globe. centers global our his our to always since In has reach across by strategic anchored built brothers the

distribution sold capabilities are over broad solve XXX every virtually products to countries and we in model. developed through Our have

XX partners, bring a across supply is leveraging Between of feel our network market our and we to chain best-in-class. that we licensee products diverse different categories, company truly

business thriving $X.X Guess? today. built As that a result, we billion retail the have is it into

the we brand. future, to Guess? opportunities continue grow see multiple further to the to Looking

support can that just platform with more. our We Beyond capabilities, can brand. that, know more do one we than leverage to powerful our we

can a generate We over synergistic expansion have time. significant broader deliver built and value a business, and platform that bigger growth power margin and creation

leverage existing through was platform developed drive what through is acquisitions or through multiple or That that the of new evolution brands outsized the call and last segmented to This that we our internally in brands. brands growth described call. point, inflection I our

in Looking to gratifying see brand, and well. healthy continued It in core the Guess? is at business mature success has Europe. our markets performing remains been

In that, about Middle newer momentum. business to we India Latin strong Turkey, East, where growth addition is excited and enjoying our markets the opportunities as such America in are

until extension of license $XX XXXX that brand, license, For instrumental have renegotiated handbags we to that the million why we renewal. important The very our in expand That's we footprint. upfront for has the Paul contract on included the partnership new growing further Guess? handbag terms. as been for favorable share growth brand, cash payment opportunities our cementing are pleased and a our see

strong potential. we a the apparel great Going assortment well. handbags category beyond to bone with as this as brands & augment other of example a see rag is lifestyle forward, Guess?

we recently company. and Jeans As first have brand you exciting finished launched Guess its just sales campaign, our know, for our moment an

with completely to of marketing with multi-category conscious is Guess with brand, the environmentally brand-new its an store campaigns lifestyle fits employs a new innovative that well points, and an dramatically materials, the and legacy brand brand customer, well an AIRWASH, own casual While offering denim Guess? with its stone combined our water for target Z strategy younger identity process and This, and will pricing store consumption. advertising is reduces And Jeans introducing own all more customers. concept sustainable defined compelling it Jeans Guess washing within with welcoming targeting its the connect harkens price by it consumer. brand assortment. It eco-friendly overall is store architecture. environment a but its that Gen

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June, area its Milan. department Guess They high campaign Guess in in of presentation also which on this in flagship Corso located a to store the first in store Jeans la store facade do on is Paris. Vittorio a Also plans very in featured iconic Emanuele chain, special Jeans our advertising Rinascente Italian traffic

campaign Under in Jeans and online, inference and English print social just of Jude reach as media of of Jeans the actress Nicolai well. globally we daughter the Law, model help fashion Iris Guess advertising featuring her actor believe We across law. first expand completed the the brand will Marciano, the direction Guess

for Coachella the Ice more. Jeans weekend hosted compound homes. of Paak, Hailey multiple third Balvin, guests Metro with luxury J Spice, Justin list, and a weekend, Billie in during Guess and Eilish, parties year including The ambassadors Also, hosted Boomin Kaytranada Robert celebrity a after artists and guest included Bieber Anderson brand star-studded Pattinson, and top-performing by

successful, event X The XX impressions million billion nearly in views. and proved enormously resulting

$X.XX commanding a partnership completed our acquisition billion QX base. Global. This both brand with men, we rag heritage diverse & rag margins complements in consumer a know, a pricing premium product is and to you proven & appealing bone women offering already As longevity and a bone affluent with with WHP a business. for business, through highly and of existing our nicely

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already existing for and new store Europe. are We looking new including brand key markets cities and are we actively advertising in the locations, in

including an continues brand, as help bone & rag operations sharing sourcing to operate their by together, and resources to scale, can As we optimize fashion leveraging opportunities. independent

Turning to a on focus product.

in with a SKU a apparel we During significant our progress lines reduction. achieve quarter, count goal to reduce to global the our made development XX%

buys the retail productivity tightened concentrate assortment also to service and our to our have SKUs We levels. fewer increase in into stores

In and product. pricing by and perfect focusing structure we customers for addition, each to every continue our refine the perceived value on

we creating center Logistics, our should improvement to many our product efficiencies which distribution has as our our third-party GXO is our pricing provider smoothly, and everything optimizing do operations. goal, We the we on service which well to drive for value The buy, going well reduce in Europe help been transition, focused costs as partner in to underway. levels. improve are we is this selected operate continuous a transition U.S. To in the by business way growing offering, Beyond support and distribution years.

a GXO leasing launched have back We that process operate. with facility to sell to it

finalized before third quarter end be to We expect transaction the of for the sales this year. the

Turning per nearly and to year in guidance, outlook. we Consistent time previous with to revenue to expect our for $X share. billion adjusted the deliver earnings strong this our $X ever growth exceed first

Before years me things in the let returned our I personal the back over been in I hand are well off X to believe future. known now with great perspective our and me distributed has includes strongly still that XXXX. growth little than opportunities XXXX, reflection growing XX on Laser much countries. me have left XXX with over my there Guess? what a focused with and has company so successful that come. so brand, brand, and a Guess? more me. brought and in excited Because and well years to for I that on I I about Markus, I changed, share for already when

that asset that broadcast have the to I valuable most is a realize we come machine, $X arguably, though that global with platform What powerful others. this Paul brand. the is started What do built of or we that either with precipice for is point, is recognizing brothers our brands, to have than internally and from vision inflection That's the developed Guess?, that just this platform. brand. company one his other can acquired It more billion

so easy not extensive capabilities, category strong diverse global portfolio replicate, expansive channel but supply that's and adaptable. team, a powerful footprint, management to broad arsenal, Our chain,

can a that things it do can bigger brand simply wake single make brand. by day We exponentially To we category do. something the others lifestyle a regional up brand turn because To belief dimensions. cannot a make take and we To across multiple into it every energized grow that global.

a great bone and already & to with off solid are rag Jeans We Guess has start traction.

reinforces our year Our to strong the passion. start and our belief

we careful strong shareholders' as have when We of our will stewards go move so and a capital capital, structure, are necessary. prudently, we course and correct we learn

our more than excited growth for outsized and I create I couldn't XXXX, now to even in confident enthusiastic be this outsized ability and value was drive more and But I'm shareholders. in with platform our

with the to go Markus. Markus, call please that, I pass And will ahead.

Markus Neubrand

quarter. and echo good Carlos, you, afternoon, sentiments I to want our Thank Carlos' about everyone.

operating the rag and Our team have lower than per well, higher-than-expected a resulting we in & X, April very share On loss we existing adjusted completed anticipated. margin into had performed & revenues, rag bone adjusted integrated segments. bone acquisition XXXX, our and

constant offset X X quarter through revenues and our last Let Americas first licensing Retail the Total currency. our Europe of bone accounts total results rag in core in & year's for and points than quarter first partially currency by revenue business me in constant for take grew lower-than-anticipated company in to expected, revenues the you the quarter, growth segment. Compared company in first points X% the more in by better and U.S. dollars X% with segments performing detail.

segment increase in in including X% e-commerce, in posted dollars X% and U.S. Starting Retail to dollars constant our where Europe, revenue and currency. currency. Turning a increased with X% U.S. in performance. we comps, X% constant

Turkey, constant As retail in growth few key been past currency growth comp currency. the driver revenue constant quarters, increase the in Turkey's and including quarter the would excluding meaningful store that XX% a revenue X%. A impact for had was retail have strong on in of a hyperinflation comps, comparable e-commerce in the

assortments While declined our quarter Key including compared and year. in continue to modestly, AUR teams growth actions from comps QX X benefit e-commerce currency the to took customer fourth we over better drove last a higher X% declined experience. Improving traffic conversion. last by of trends, our improved months performance, our constant and replenishment

than remained by by wholesale and of accounts, X% roughly by negative and European good and bone our shipments Canada operating in of welcomed the margin momentum expenses single in for due result comps in revenues Our XX as Canada robust to businesses. The Retail increased digits their was anticipated currency. revenues wholesale in increased currency product to earlier driven X.X% markups. Revenues This partially to Americas In business headwinds, traffic low XX% that Mexico. American flat constant & to by sales decreased our European currency. partially dollars roughly and initial points core in basis was constant conversion. of lower higher offset higher currency. in improved Retail X.X% constant declined comps, including comps and and U.S. U.S. our by in the e-commerce, retail comps in stores, retail our in addition a and in in The fell U.S. currency constant levels rag in business decline offset support

are As Carlos to mentioned, actions improve our we performance. taking

a negative which and revenues for U.S. year. higher to last traffic X-point was by business basis a margin impact margin, China. higher e-commerce constant of offset our by in dollars mainly in had in business last revenue X% mainly year rate. Americas lower strong a margins points Retail from in our QX in to U.S. XX.X%, partially consolidation was posted currency, a decreased IMU. In Our by Revenue decreased grew XX% increasing constant in acquired by the XX margin & of Operating lower including our a the X% region was quarter, driven XX% exceeded both revenues currency. revenues And constant X% XX% quarter, Canada in new businesses. In and drove revenues India markdowns our constant by dollars offset driven operating and in higher and points expectations with conversion segment product higher by that driven partially compared by last by in rag Asia, the and finally, by of store from Retail impact e-comm currency. Operating first expenses, Asia U.S. operating first-time X.X%, were licensing higher expenses. comparable website and a XXX Wholesale, new in basis comps X.X% comps, dollars increased and X% decreased year's e-commerce margin growth Lower decrease currency. to and bone. and driven the U.S. unfavorable to mainly compared decrease lower of initiatives offset reached roughly Americas

in benefited lower higher QX, the higher gross XX% payment investments improved total increased from and earlier, XX.X%, reached margin quarter basis amortization by operating quarter the by handbag offset especially operating bone and in $XXX profit was a by Segment infrastructure, points driven was mainly expenses. Adjusted XXX company first rag up from million. for revenues, to IMUs expense margin partially & markdowns, due In license for renewal. the The of The upfront the and and year XX% marketing increase to SG&A Europe. increased mainly XX%.

reported XX.X%. In increased higher SG&A XXX the margin For our noncash offset operating decreased includes and net further remeasurements expenses points we X.X%, $XX This quarter, higher gain negative and the million. company to our basis rate hedge. the notes income adjusted impact to of of to driven X.X to unfavorable convertible quarter, and the IMU. In an currencies points a adjusted revenues from by for quarter, net related our by related derivatives nonoperating a due

million convertible of impacted resulting year, effective to the a of year's loss And of the to completion quarter. share transaction fair the nonoperating in of a loss the expenses Kentucky was rag tax last accounting QX were earlier the to quarter transactions in we changed to the diluted rate center transition corporate loss. Further, GAAP our share $X.XX distribution overhead treatment compared and first an charges third-party & our bone XX.X%. Adjusted $XX per $X.XX With provider. this per adjusted in recorded of noncash related by value, gain note exchange or

to Moving sheet. balance the

Our million quarter. the of $XXX at the end inventories were

X% inventory and in rag in management. our down to were disciplined our year, currency bone, last & constant underscoring dollars, Excluding core compared X% U.S. inventories

technology borrowing of by were million the of certain mainly We includes free $XX flow, our bone million million various connection million, ended rag cash drivers significant Chile and over and than and capacity quarter remodels, that the the the handbag million a of $XX in $XX $XXX which $XX repurchases on to Peru. ended of $XX in million total dividends, ago. acquisition minority $XXX with last of consumption in share $XX $XXX million acquisition The the renewal assets of For facilities. million million $XXX driven cash $XXX distributions. We roughly the include of payment investments in quarter & upfront with million in capital store X a capital global in license million compared quarters, in expenditures quarter, by more most with year cash offset

million available liquidity. So roughly $XXX of

$XX As XXXX Carlos in while special the closing North we credit rag mentioned, we repaying dividend of a issued share shareholders connection convertible in the in $X.XX April. borrowing also of to bone by acquisition, notes due per asset-based roughly of increased the our million. capacity in million Furthermore, & $XX America facility with our revolving

our due We additional been also exchanged $XX notes, deferring in XXXX. last an million XXXX tranche had month, maturities of which convertible of

very are from resulted last prior for which sizable months from period. improved infusions the free XX the our performance pleased $XXX We working events. more cash both flow That compared to as million as capital nonrecurring management, than with cash well our careful

fiscal to year outlook our Turning for XXXX.

in what the of we back is view you consistent year Our with with March. shared

Canada, consumer is interest affected headwinds business persist. and the We whose U.S. continue rates. In availability core our the in to our retail traffic higher factors by external expect inflation, like credit shopping and cautious

Europe, growth always, in of As our on this business. In addition model. total we expect as business rag a And contribute to earlier, year's diversification our strong. the & substantial this for company. initiatives The will to we drive improvements the remain Carlos described given to of of portion are bone working

new challenges. remain developments, react both will including to agile and opportunities to We quickly

should XX.X% currency of U.S. range now half expect given latter year's will X-point For prevailing of revenues in point in the extra the the last a we year because of XXXX This increase ease week dollars. in to fiscal XXXX. fiscal rates. net exchange a X.X is XX.X% Currency of headwind headwinds and headwind

on to into share full continue adjusted headwinds growth remain disruption, And the earnings the costs. by X.X% adjusted in assumptions, of initiatives year, Given an for per infrastructure we to $X. investing marketing, range our expect expect these and Red inbound and plans we operating the our between support from Sea to place. Based $X.XX margin in and freight X.X%

to in of For the expect dollars. Currency adverse revenues revenue in range to roughly X U.S. on points. net growth are quarter, increase a have of impact will second XX% the we headwinds expected X%

expect third an operating $X.XX Guess and the accelerate acceleration margin revenue between expect adjusted of earnings of in share Jeans outerwear and between per the X.X% new X.X% adjusted to we North We shipments the year and first and the America with quarter growth $X.XX. Overall, brand. in

as will Going we growth week. we into quarter, the fourth be negatively anniversary year's last will XXrd that revenue impacted expect

Turning an abate when expect with to compared to operating adjusted represent margin quarter The should year. margin. quarter margin last the the operating for We fourth expansion. opportunity do pressure in third

for outlook anticipate $XXX full flow free Our we million a the for roughly free cash generating is cash as year. unchanged flow of

to businesses in our is brands invest priority and to sustainable Our support growth.

closing, We for remain I'm across capital demonstrated projects. In been a our teams part executing continue the of year. as quarter. of we I've in family allocate Guess? excellence our by performance with the disciplined highly again almost last way that a proud will

invest enables our an strong structure have future. in our incredible platform and us We capital to

our for about prospects We excited growth. very are

decision-making We excellence. improve achieve to are on analytics data our operational on focused journey to

sustainable, our now and to strategic we objectives shareholder meaningful for with profitable call drive can will the forward, questions. open Looking growth returns. And that, us guide up

Operator

it Mauricio line the comes from UBS. One Instructions] And our question. first for with moment Serna [Operator of

Mauricio Serna Vega

I revenue for First, guidance on ask just to wanted year. the the

at the reconcile the then agreement? new think like Just And previously anticipated? And there? you the for lowered first were slightly, reflective a what midpoint was but up despite a FX it little bit is just I I slightly in this on year, that than to then quarter. if have wondering follow-up. trying it's licensing to bigger margins is I mostly the related changes on being a maybe I headwind beat like the think another of the

Carlos Alberini

start. me Mauricio, let

this. our then ago of today we in just guidance with and you we we fourth tweak is released are complete very our in we with first quarter one -- consistent the the quarter general, is outlook and -- our some Markus we on course, to X when about the previous outlook trends that the based Just seeing. shared performance in months and But earnings. And yes, that going

did retail So very businesses touched just tweak And other that was the primarily in the that in in a business the we some some we of the with what positive we Americas. or also compensated respect saw also of offset performance see some lot to the weakness that Americas.

we that In relatively have lot issues in addition a some to that in business And Europe, growth the half for that, it's seeing we wholesale of piece. just the second year. of timing impacted do of but the the momentum business are small a

So impacting in guidance. The to that think your Markus? well. And the the significant, of is embedded Markus issue first going it's licensing, is the abate question licensing about renewal as but half. supposed that our embedded half small us there which talk not in adjustment it's -- about is it's in in that to the business is second because as but license. currency also a guidance the to of well, I the significantly, But

Markus Neubrand

for you question. thank your Mauricio,

end of X.X% previously what what per consistent consistent to growth gave guidance reiterate the the and with is the $X top and strong margin, Carlos EPS at Regarding provided we and operating adjusted just is share. revenue revenue guidance also our said, point, we very with adjusted today

we quarter a we the more That's and give European U.S. about second and guidance about second And soft, sell-out good fourth second quarter. And two wanted X% of and performance and were mentioned with a which obviously, the these now we me Carlos we second the $X.XX. last talked operating Retail EPS Americas second with first the assumptions our on, We're for earlier quarter I thinking in the changes impacting expecting quarter bit with well. second X.X% this only margin adjusted where just we time we in provided quarter, touched as the quarter you then into pleased prepared have revenue and color of the been on -- remarks, notable quarter, between that when dollar the customers Let $X.XX between business to that's course, anticipated the little growth and wholesale guidance. XX% why between some are Carlos has with and QX how today. and X.X% part consistent guided instead year start as quarter is are the rest the of some of

think for you back operating And year, quarter. great the the in of growth. adjusted profit being because the about and for expansion, As operating the our seasonality fourth of the biggest the it strongest half quarter, cadence opportunity considering margin represents that's business, quarterly adjusted for fourth have especially we quarter the opportunity the revenue

Mauricio Serna Vega

expansion. And just you what Very opportunity that in It's the what the margin it. markdown see just maybe elaborate you this all more to on about Got is helpful in lastly, if business that done? the Maybe color. drove to lower lower about you've nice QX. -- what talk you've Like highlighted. markdowns Like Retail could some that operating Americas could elaborate on activity? -- very your driving comment

Carlos Alberini

Yes.

what where the in expect rag which in half, stopped category, outerwear year where of X and XXrd half and year. we of shipping first which the internalization this Let last we terms Peru, year, course, we driving the dress overall & earlier, concrete also India, in about in also the we and of that and week the of headwinds of of to the abate talked then year's the bone. The the is call we Guess have second in start, half shared initiatives half second Jeans, the me Chile, QX like first have revenue second initiatives several

your think for is quarter, what to about we for see I improved price back and full the selling. the improved fourth question quarter, fourth operating Going -- margin,

year's fourth we markdowns. quoted we had last quarter, think I that higher

see where wholesale our selling. performance an by also the shipments. benefit fourth fourth the see this as that's also will good of timing with year, wholesale of full shipments timing price furthermore, as timing we operating quarter and think our opportunity quarter the And improved also we for partners supported the spend margin our I the across we And this point, third the sell-out with benefiting of the the of advertising see well. from

Markus Neubrand

that And about I quarter margins that a significant bone be a the of the would impact. of business, has -- component This that add mix a is of of the you big question general. is accretive fourth asked in business a has & to retail and as rag well. And as part addition should

very being disciplined been inventory. have We buying the in have been way we

of product selling about lot cost at respect this not what avoid value Because having demand we are with our elevating obsessed business if case, based -- is it or And can to the support but read price this we a optimize buys then sales. margins the has the going to even trying future a that -- discounting look one to going X a of we buy full region. trying business. at are we have X we us. We maximizing very maybe like. are if core that we that brand now for years a methodology to sales, this on And in choose And as means future ago not We every inventory demand. overbuy, instituted businesses, much to worked trying customer of and limiting the that this. we of type are are doing we healthier to But of or well that are and in applying And we reducing have sellout. of that every anything, been in result, be -- regardless we couple our

Operator

our of it Small Beder Research. for from moment with please. line Consumer next And One comes the Cap Instructions] [Operator Eric question,

Eric Beder

acquisition. want & I little to bone. talk the around on rag bit Congrats a

You not is Europe. brand space for in know distributed mentioned retail the this that U.S. I you're looking heavily outside

do you look And brand Then And how or term, brand how this there's in So expanding this. look you can this think upon have I will do a into follow-up. of source not here lot longer U.S., the international? you support? also, a many at

Carlos Alberini

Eric, Thank Yes. for the you, question.

bone. rag are super about & excited We

couldn't we the the going be I big We We pursue rag excited clear. more excited think made Rosen to that more together. chair the be & bone about we're it's opportunities very team. couldn't with and about Andrew just becoming announcement a

So let big operated with. We opportunities. just making two see increase company the that into lot a about to and global thing international really me just to the -- brand is start And this And product the is have we more huge second there. But One has do. with landscape. assortment bringing we region, brand the key region definitely brand especially the the that kind give teams are. And in X of and the some believe a a the European fronts in order brand of awareness needs we cities. are represent on working like store the need to the appropriately that both presence in we

for look mobilized great great is infrastructure a So and we the and major opportunities that that multiple European platform as whole really amazing that, thing the a been you into centers to team be looking could us. The available in to has we opportunities. have market, been an in Guess? and team these know, at have is with that represented

great look yet, be that but may show the they we are but assortment some inside is a really of Now for to that categories an and way, the access that also just anything and that. we think thinking to those mean, can And as we past product this full represented model businesses, to today bigger think an in stores opportunity we be opportunity categories. under they -- but licensing ownership. opportunities the capital a additional to company about we are the brand there domestic only selected quickly. did that expanded we the for have previous bigger then well. With offers opportunity at in business very the there I are stores a on not have XX product provide is respect we company to market, also And you're thing has moving in side going the And is right. and that big be slowly. The haven't

to And go is all flexibility the things. about of just thinking and is slowly. again, this expansion. a these are more So there that team But are lot going type move Rosen Andrew to we into

be plan deploy thing that going putting to is with move carefully things the are and we but We their we're a capital. The time, working retail going on together, is successful. great and take way very new to judicious business are highly some

that the do in stores they great Just they have productivity have.

that, of store every we be expect that positive I will think flow. with at And single type experience is cash replicated -- new would produces stores.

with Of just relationships relationships the are are on those the and up teaming make Andrew case with to important together bone. that also rag at that sure brand landlords, incredible growth. really the and have and we things we & is that are course, and to the team And we maximize working

know more really we working The be excited. seems reasonably be early. to couldn't I So that product well. And it's

wholesale that on our our Just And with and at the business, nice e-commerce people as also about talking into are retail, are and in we product the the excited stores I'm same a result, about a the that the business. same thing the of the retail super collections. buying the see is should sale business translate very on brand sold trend partners, -- point department

So together. and us overall, the future very happy and excited brands for the about for

Eric Beder

a quick follow-up. Just

as time, first being & do the you internal brands amount see kind X take combination and of So to of multi-branded like other brands? out that a Jeans? acquisition like rag doing its to next of acquisition? platform you're here I talked -- for different and connections the that for have longer about for whatever look able Guess? of you When bone this or Guess is Or years, these being And you leverages that platform is of to level. like it term the levered worldwide with X guess, kind

Carlos Alberini

do here is think other from example necessarily what power Yes, it's mean, believe platform, our an opportunity develop is fully this brands, Eric. significant. it something whether Jeans Yes. heritage the bring anchored that the pretty in brands is segmented we through Guess developed absolutely and of just platform not one, is businesses because to internally or it's where I great that a And we no, that we that do Thank there an & DNA. it's business, growth in by are doing the rag since great has over the opportunity very business. But that has that been Guess? excited definitely its platform example. incremental that we XX and last a bone is and can built example for is the which, separate another the Paul brand. But very, we with brand, use is about and way, years well the where an started it's his brothers you, just

grow Just and businesses. to be optimize really to those able different

I now one another premature one. to think be that to another super it start thinking add going we're and about, will okay,

business, brand is as are our acquisition big but which just a energy think and strategy. The definitely on focused brand of a that autonomous into & good is thing fully that, is are a offers great lot putting we being team. managed lot right have an growing the I And and one, we core independent opportunities. now, of we a bone rag

obviously, with super are and just again, weigh together that and opportunities happy their in to because, So just power on strategic the the the are And that the giving has the decision-making while work we very strong. we -- team company, of do lot team we a to and want direction activities coordinate brand to just is and job.

a lot and portfolio. doing. But attention we before this be and but of could to So we that that's we into every one. one -- that strongly next we that, We be don't take will don't with that think that and lot means mean case, to of energy, move the next want brands a that think incorporated believe a other the think lot about that, the successful we're doesn't what of this want be care,

Operator

I Thank conclude Carlos the that, Alberini you. for turn closing with it session and Q&A And back will to comments.

Carlos Alberini

thank your participation you Thank you much, all Well, for very today. operator.

with and our our are pleased we very are very performance, about We excited future.

take next growth call energized to our I of company our grab inflection what is level profitability. the team and to Our and point opportunity

and that we I Paul know very a and on have saying in journey behalf be now. part exciting team, together to speak this myself right of great Just of it's

So thank our again great company for our speak story, and you all for and a all soon. your Have day. support we'll

Operator

conclude all our with And you. that, have day. great Thank you Thank for participating, and a we call. conference

Guess' (GES) 30 May 242025 Q1 Earnings call transcript