For the first quarter, Guess’ revenues were up three per cent compared to the previous-year quarter. Sales in Americas were the strongest of the geographic areas, with retail revenues climbing three per cent and retail comps including e-commerce up four per cent during the quarter. Revenues in Europe inched up 2.2 per cent, but Asia only saw sales growth of 1.4 per cent. In the long term, China is still considered a revenue growth area even though business has been slow there. Guess has stores in 34 of the top 60 cities in China, and 90 per cent are directly operated.
Retail sales including e-commerce decreased 15 per cent. The company’s e-commerce sales make up 12 per cent of its revenues. Guess is taking action to mitigate potential tariffs, from cost sharing with its suppliers to shifting sourcing to other countries. The company is raising prices if the product can deliver and offsetting cost increases with other cost-saving initiatives. Denim will be a focal point in this summer’s marketing campaign, and there will be more denim in the stores this summer and fall. The brand has a number of key products including denim, accessories, and men’s. To better serve the customer, the company is creating two design teams to manage its contemporary label Marciano.