Latest news with #Rag&Bone
Yahoo
09-06-2025
- Business
- Yahoo
Guess Limits Tariff Impact to Less Than $10M, Adjusts Sourcing and Buying Strategies
Guess Inc. is taking steps to mitigate the effects of President Trump's tariff war. During the company's Q1 2026 earnings call Thursday, Guess Inc. CEO Carlos Alberini said roughly 75 percent of Guess Inc.'s business is outside of the U.S and therefore not directly impacted by the tariffs. The remaining 25 percent of directly produced and distributed products represents roughly $200 million in annual purchase. More from Sourcing Journal US Trade Deficit Contracted in April Amid Tariff-Driven Import Paralysis LA, Long Beach Ports Brace for Potential Record-Breaking Summer Surge Old Dominion Blames 'Economic Softness' for Revenue, Volume Slips 'Both our Guess and Rag & Bone sourcing teams have undertaken a massive effort to move a substantial amount of our production out of China to other markets. We also reworked costs with vendors and pricing with retail customers,' he said. Alberini expects the year over year impact of tariffs on Guess Inc.'s margins will be less than $10 million this year—an amount that Guess will achieve with 'very minimal price increases.' 'The tariffs have also sparked renewed fears of inflation or recession, but we have not attempted to predict how they may affect the consumer's appetite to spend their disposable income,' he said. Despite these economic uncertainties, Alberini ended Q1 on a positive note. 'We are very pleased with the start of our year. We are encouraged by the early results of our initiatives regarding product marketing and retail productivity in both North America and in Europe, and we believe that these successes can be leveraged across the rest of our direct-to-consumer business, and especially in the second half of the year,' he said. Q1 results came in ahead of expectations across key financial metrics reflecting the successful integration of Rag & Bone and continued momentum in Guess' wholesale businesses across Europe and the Americas. Alberini said discipline expense management, combined with a better-than-expected top line enabled Guess to report operating results ahead of the company's guidance range, narrowing losses for the quarter. Total net revenue for the first quarter of fiscal 2026 increased 9 percent to $647.8 million from $591.9 million in the same prior-year quarter. In Europe, revenue increased 8 percent to $306 million. In particular, the wholesale business performed well with revenues increasing in the mid-teens. Guess was able to accelerate product deliveries to mitigate against potential disruptions from the ongoing Red Sea crisis. Americas retail revenue increased 9 percent. Comps from U.S. and Canadian Guess stores declined 10 percent in constant currency, though Dennis Secor, Guess Inc.'s interim CFO, said the trend was improving in the latter part of the quarter. Traffic to Guess stores continued to be down, though some of that was offset with an improvement in conversion. Americas wholesale revenue increased 63 percent to $101 million, driven by the addition of Rag & Bone and higher Guess shipments in the U.S. and Mexico. Secor said the increase in the U.S. Guess business was primarily due to its off-price accounts. In Asia, revenues decreased 20 percent to $58 million. South Korea and China, where the company is purposedly constraining its business, saw the biggest declines. For the first quarter ended Jan. 31, the company posted a GAAP net loss of $32.9 million, compared to GAAP net earnings of $13 million for the same prior-year quarter. Adjusted net loss was $22.3 million, a 61 percent increase from $13.8 million for the same prior-year quarter. Adjusted diluted net loss per share increased 63 percent to $0.44, compared to $0.27 for the same prior-year quarter. The company estimates a negative impact from its share buybacks of $0.02 and a positive impact from currency of $0.08 on adjusted diluted EPS in the first quarter of fiscal 2026 when compared to the same prior-year quarter. 'We are beginning with the implementation of several initiatives as we speak, including the reorganization of our teams, the deployment of new practices and increasing investment into social channels and relationships with influencers and other collaborations to attract a younger audience,' Alberini said. One of the key challenges for Guess over the last several years has been the decline in customer traffic into its stores and website. The trends have persisted in the U.S. and Asia for some time, and the brand is seeing similar patterns emerge in our European retail business. To address this, Guess is rolling out a range of initiatives aimed at re-engaging customers and driving higher traffic across both physical and digital channels. 'We continue to see a significant opportunity to increase brand awareness and customer engagement through increased marketing investment,' Alberini said, adding that consulting firm General Idea is crafting a 'new market vision to transform our social media strategy' and 'reignite our brand relevance and awareness with today's consumer.' Guess plans to expand the customer loyalty program it recently launched in Italy and Poland to Germany, Austria and Spain. Alberini said the program is driving consumers to return to the stores with greater frequency and spend more per visit. 'As we continue to sign up more customers into our database and we gain insights into their shopping habits, we are investing improving our customer insights capabilities using AI-powered tools,' he said. Efforts to drive production costs down, like committing to larger and earlier production values, left less open to buy later in the season. This resulted in missing certain trend and sacrificing revenues. To counter this, Alberini said the Guess team is developing fast track capabilities within its supply chain to more quickly replenish best sellers and inject additional products into the market as trends develop in the season. 'We used to operate in this manner several years ago and had success, primarily in North America. We are implementing this again with our Spring/Summer '26 collection, with our goal ultimately to leave 50 percent of our buy open after we place our initial orders,' he said. Additionally, Guess is rebalancing its product assortment to increase penetration and offer more opening price point products. Alberini said the company's efforts to increase quality over the past few years by elevating fabrics and embellishments has left some consumers behind. 'While the program was successful in many ways, our recent analysis of pricing suggests that some of our legacy customers were not able to make that journey with us. It's also reflective of what we have experienced with today's consumer, who tends to be quite sensitive to pricing,' he said. The company is encouraged by growth opportunities for Rag & Bone, Guess Jeans and the women's category. Guess is going after more casual assortment and trying to bring more denim into the product selection. In the first quarter that women's apparel was up 3 percent, which Alberini said Guess hasn't seen in a long time. 'Our business now is primarily focusing on women—we think that the customer represents about 85 percent of the total customer base. If we turn women's, that's a major sign of success for us,' he said. Guess Inc.'s plan for Rag & Bone is grow the business from $250 million to $320 million in 2026. Growth will be driven by new stores and product categories, Alberini said. There are currently open 41 stores, up from 38 when Guess acquired the brand. Ten more stores are planned for the next few months. Expanding into new markets is opening new opportunities as well. Two more stores will open in Germany in a few months, and one in Amsterdam. Licensed products like handbags are already in stores and performing well. Deals for watches and eyewear are finalized and now the company is working on fragrances. On top of that, Alberini said the Rag & Bone team, led by Andrew Rosen, is doing a great job at expanding key product categories like the Miramar denim collection and adjusting the brand's outlet strategy. Whereas Rag & Bone's outlets used to run on excess product from the other channels, Guess Inc. has created an entirely new business model where it is making product for those stores. Guess Jeans continues to exceed the company's expectations—not by a huge amount but better than anticipated, Alberini said. The brand, which launched last year, has 'nice' distribution in Europe and is primarily a wholesale business. 'There is a lot of work that is being done by the teams to really improve our product offering,' he said, adding that the team is in 'listening mode' to make sure they're developing products based on what their retail partners see is resonating with men and women. 'We are trying to understand where the customer is gravitating, to strengthen the offering based on that,' he said. Though he wishes Guess Jeans' North American business was larger by now, Alberini said he's confident that the product and pricing is where they need to be. 'We think that we are in a very good place in terms of the type of trends that are in the marketplace and how we are addressing them with our product,' he said. Guess Jeans will open stores in Tokyo and on Melrose Avenue in Los Angeles soon. The store openings will be supported by a robust social media strategy—a must, he added, for a jeans brand that appeals to a young consumer who lives on social media.
Fashion United
06-06-2025
- Business
- Fashion United
Guess Q1: Rag & Bone acquisition boosts revenue, net loss widens
Guess financial results for the first quarter ended May 3, 2025, revealed a complex picture of growth driven by strategic acquisitions and wholesale momentum, set against a backdrop of increased losses. Despite a GAAP net loss for the quarter, the company's revenue surpassed expectations, primarily attributed to the successful integration of the newly acquired Rag & Bone brand and robust performance in its European and Americas wholesale businesses. Total net revenue for the quarter increased by 9 percent to 647.8 million dollars, or 12 percent in constant currency. Carlos Alberini, chief executive officer, expressed encouragement, stating, "Revenue grew 9% in U.S. dollars and 12% in constant currency, reflecting the successful integration of rag & bone and continued momentum in our wholesale businesses across Europe and the Americas." He also highlighted disciplined expense management as a factor in narrowing the quarterly loss. Highlights of Guess Q1 results For the first quarter, Guess reported a GAAP net loss of 32.9 million dollars, a significant shift from a GAAP net earnings of 13 million dollars in the comparable prior-year quarter. Consequently, GAAP diluted net loss per share was 65 cents, compared to GAAP diluted net earnings per share of 23 cents in the prior year. On an adjusted basis, the net loss increased by 61 percent to 22.3 million dollars, resulting in an adjusted diluted net loss per share of 44 cents, up 63 percent from 27 cents previously. Regionally, Europe revenues saw an 8 percent increase (9 percent in constant currency), though retail comparable sales in the region decreased by 4 percent (3 percent in constant currency). Americas Retail revenues grew 9 percent (12 percent in constant currency), but retail comparable sales in this segment experienced an 11 percent decline (9 percent in constant currency). Americas Wholesale revenues demonstrated strong growth, increasing by 63 percent (70 percent in constant currency). Asia revenues, on the other hand, decreased by 20 percent (16 percent in constant currency), with retail comparable sales down 24 percent (20 percent in constant currency). Licensing revenues also saw a 14 percent decrease. For the second quarter of fiscal 2026, Guess projects consolidated net revenue to increase between 2.9 percent and 4.7 percent, with GAAP and adjusted operating margins expected to be between 2.5 percent and 3.3 percent. This translates to projected GAAP and adjusted earnings from operations ranging from 19 million dollars to 26 million dollars, and diluted EPS from 11 cents to 18 cents (GAAP) and 11 cents to 21 cents (adjusted). For the full fiscal year 2026, the company anticipates consolidated net revenue growth of 5.5 percent to 7.4 percent, GAAP operating margin between 3.9 percent and 4.6 percent, and adjusted operating margin between 4.4 percent and 5.1 percent. Full-year GAAP earnings from operations are projected between 124 million dollars and 148 million dollars, with adjusted earnings from operations between 139 million dollars and 163 million dollars. Diluted EPS for the full year is expected to be 87 cents to 1.11 dollars (GAAP) and 1.32 dollars to 1.64 dollars (adjusted). Guess plans to expand Rag & Bone into new markets Paul Marciano, co-founder and chief creative officer, underscored the strength of Guess's diversified business model, which encompasses 25 product categories, multiple global markets, and various consumer channels. The company plans to leverage this extensive platform to fuel future revenue growth, including expanding Rag & Bone into new markets and product categories, broadening the distribution of its Guess Athleisure line, and increasing the market share of its Guess Jeans brand among younger consumers. Looking ahead, Alberini anticipates continued revenue growth for the remainder of fiscal 2026, driven by the expansion of Rag & Bone, the ongoing development of Guess Jeans, and a new joint venture with the Chalhoub Group in the Middle East. Proactive measures have been taken to manage tariff exposure, aiming to limit the net impact to less than 10 million dollars for the year. The company's board of directors approved a quarterly cash dividend of 30 cents per share payable on July 3, 2025.
Fashion Network
22-05-2025
- Business
- Fashion Network
Rag & Bone licenses eyewear to Marcolin
Home › News › Business Translated by Nicola Mira Download Print Translated by Nicola Mira Rag & Bone has inked a four-year eyewear license deal with Italian producer Marcolin. The partnership has been announced by Guess and WHP Global, owners of the New York apparel brand since April 2024. A still from the latest Rag & Bone campaign - DR The exclusive license deal covers the design, production and distribution of the new Rag & Bone-branded sunglasses and eyeglasses collection, whose aesthetic is inspired by the energy of metropolitan living. The models are designed both for consumers keen on directional products and for those who prioritise everyday use and a combination of functionality and style. 'Guess has been working with the highly talented team from Marcolin for over 30 years on delivering fashionable trend-right eyewear to the market. We are thrilled to expand that partnership to Rag & Bone, further growing the brand's lifestyle segment through their expertise, commitment to style and innovation,' said Paul Marciano, co-founder and chief creative officer at Guess. Rag & Bone was founded in New York in 2002, and has established itself in the contemporary US fashion scene thanks to its authentic, minimalist style tapping New York's urban aesthetic and combining traditional craftsmanship with modern cultural influences.'We are proud to partner with an iconic brand like Rag & Bone, which perfectly embodies the contemporary and authentic aesthetic rooted in New York culture,' said Fabrizio Curci, CEO and managing director of new collection will be available in the coming months at Rag & Bone stores, on and at select opticians and authorised retailers worldwide. Rag & Bone operates monobrand stores in the USA and the UK, and is also distributed worldwide via luxury multibrand retailers, department stores and international e-tailers. Copyright © 2025 All rights reserved. Tags : Fashion Eyewear Business
Fashion Network
22-05-2025
- Business
- Fashion Network
Rag & Bone licenses eyewear to Marcolin
Rag & Bone has inked a four-year eyewear license deal with Italian producer Marcolin. The partnership has been announced by Guess and WHP Global, owners of the New York apparel brand since April 2024. The exclusive license deal covers the design, production and distribution of the new Rag & Bone-branded sunglasses and eyeglasses collection, whose aesthetic is inspired by the energy of metropolitan living. The models are designed both for consumers keen on directional products and for those who prioritise everyday use and a combination of functionality and style. 'Guess has been working with the highly talented team from Marcolin for over 30 years on delivering fashionable trend-right eyewear to the market. We are thrilled to expand that partnership to Rag & Bone, further growing the brand's lifestyle segment through their expertise, commitment to style and innovation,' said Paul Marciano, co-founder and chief creative officer at Guess. Rag & Bone was founded in New York in 2002, and has established itself in the contemporary US fashion scene thanks to its authentic, minimalist style tapping New York's urban aesthetic and combining traditional craftsmanship with modern cultural influences. 'We are proud to partner with an iconic brand like Rag & Bone, which perfectly embodies the contemporary and authentic aesthetic rooted in New York culture,' said Fabrizio Curci, CEO and managing director of Marcolin. The new collection will be available in the coming months at Rag & Bone stores, on and at select opticians and authorised retailers worldwide. Rag & Bone operates monobrand stores in the USA and the UK, and is also distributed worldwide via luxury multibrand retailers, department stores and international e-tailers.
Fashion Network
22-05-2025
- Business
- Fashion Network
Rag & Bone licenses eyewear to Marcolin
Rag & Bone has inked a four-year eyewear license deal with Italian producer Marcolin. The partnership has been announced by Guess and WHP Global, owners of the New York apparel brand since April 2024. The exclusive license deal covers the design, production and distribution of the new Rag & Bone-branded sunglasses and eyeglasses collection, whose aesthetic is inspired by the energy of metropolitan living. The models are designed both for consumers keen on directional products and for those who prioritise everyday use and a combination of functionality and style. 'Guess has been working with the highly talented team from Marcolin for over 30 years on delivering fashionable trend-right eyewear to the market. We are thrilled to expand that partnership to Rag & Bone, further growing the brand's lifestyle segment through their expertise, commitment to style and innovation,' said Paul Marciano, co-founder and chief creative officer at Guess. Rag & Bone was founded in New York in 2002, and has established itself in the contemporary US fashion scene thanks to its authentic, minimalist style tapping New York's urban aesthetic and combining traditional craftsmanship with modern cultural influences. 'We are proud to partner with an iconic brand like Rag & Bone, which perfectly embodies the contemporary and authentic aesthetic rooted in New York culture,' said Fabrizio Curci, CEO and managing director of Marcolin. The new collection will be available in the coming months at Rag & Bone stores, on and at select opticians and authorised retailers worldwide. Rag & Bone operates monobrand stores in the USA and the UK, and is also distributed worldwide via luxury multibrand retailers, department stores and international e-tailers.
