Guess?, Inc. (GES)

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The Company designs, markets, distributes and licenses lifestyle collections of contemporary apparel and accessories for men, women and children that reflect the American lifestyle and European fashion sensibilities.

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Avatar NetscribeRetail (< 20) Submitted: 1/16/07 8:08 AM : Start Price: $35.51 GES Score: 12.14

Guess? Inc. designs, markets, distributes and licenses a lifestyle collection of casual apparel and accessories for men, women and children. Its apparel is marketed under trademarks, including GUESS?, GUESS Jeans, BRAND G, GUESS Kids, Baby GUESS, MARCIANO, etc. The company generates revenue from four business segments operating through more than 650 stores around the world: the Retail and Wholesale segments in North America contributing 60%, European segment sharing 31% and the balance coming from Licensing segment which provides royalty revenues.
Multi brand strategy is the key to serving a diverse variety of customers across the world. Leading apparel retailers like Abercrombie and Fitch, Guess, GAP and American Eagle Outfitters have been thriving on this strategy, all catering to similar market segments. Guess seems to emerge as a leading player in North America in the same market segment where GAP is losing its share. While the USA and European markets are highly lucrative, Asia is emerging as a rapidly growing market with strong purchasing power.
Consolidated sales and operating margins for the past four years have been consistently increasing. All segments have been contributing to this increase. However, the largest increase is occurring in the European segment, for past two years, within the wholesale apparel and footwear segment, as a result of higher mark-ups.
Guess plans to open 48 new stores in North America to boost its retail business. To boost the sales in Asia, it plans to step into direct selling in South Korean and Chinese markets through its licensing segment, which would help to gain instant momentum. The company expects to achieve a 35% increase in sales for FY 2007. Such a performance and a future market strategy should make the company an outperformer in the market.

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Avatar NetscribeRetail (< 20) Submitted: 5/30/07 6:26 AM

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During January 2007, Guess? Inc acquired 75% Focus Europe S.r.l., through its Europe subsidiary Guess Europe BV including the leases and assets of four Guess by Marciano retail stores in Italy. Over the past 10 years, Focus, based in Italy, has served as the licensee, manufacturer and distributor of the Guess by Marciano contemporary line for women and men in Europe, the Middle East and Asia. The Focus business generated approximately $65 million in revenues and experienced a rate of growth in excess of 40% in the last one year. The stores included in the acquisition are located in Rome, Bologna, Cagliari and Serravalle. The acquisition is expected to be slightly accretive to earnings in 2007, with a greater contribution in 2008 and forward, as the business becomes fully integrated.

Total net revenue for fiscal 2006 increased 26.6% to $1.19 billion from $936.1 million in 2005. The company's retail stores in the US and Canada recorded an increase of 17.7%. For the same period diluted earnings per share increased 104.6%. For the fiscal year ending February 2, 2008, consolidated net revenues are expected to range from $1.45 billion to $1.5 billion, whereas diluted earnings are expected to be in the range of $3.30 to $3.40 per share.

The company plans unique business format for its target markets by globalizing its brand as in 2007 and beyond. In North America, the company plans to continue retail development of all its retail formats, including the launch of its newest concept, G by Guess. Internationally, the company plans to develop the European and Asian markets, both of which present outstanding growth opportunities for Guess? in denim line, thereby making the company a healthy investment proposition.

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Avatar FourthAxis (89.36) Submitted: 7/27/07 12:18 PM

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If the consumer runs out of cash to burn...none of this matters...

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Guess?, Inc. (GES)

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