GUESS at 30 from Jeans to Cocktail Dresses, Swimwear to Jewelry: Three Decades of Sexy, Young American Fashion

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GUESS at 30 from Jeans to Cocktail Dresses, Swimwear to Jewelry: Three Decades of Sexy, Young American Fashion WWDMILESTONES SECTION II AMERICAN DREAMERS PAUL AND MAURICE MARCIANO FRIDAY ON THE STRATEGY AHEAD GUESS At 30 From jeans to cocktail dresses, swimwear to jewelry: Three decades of sexy, young American fashion. MYLES AT WORKGROUP LTD. USING MAC COSMETICS; PHOTO ASSISTANT: RUOYI JIANG; FASHION ASSISTANT: ASHLEIGH WILLIAMS; STYLED BY KIM ASHLEIGH WILLIAMS; STYLED BY ASSISTANT: JIANG; FASHION RUOYI USING MAC COSMETICS; PHOTO ASSISTANT: WORKGROUP LTD. MYLES AT THE ADS THAT MADE THE BRAND PLUS Finding Riches in Retail A look from fall. For more, see pages 18 to 22. FASHION PHOTO BY GEORGE CHINSEE; MODEL: SARAH/NEW YORK MODELS; HAIR BY CARI DUPREY AT ARTISTSBYTIMOTHYPRIANO.COM; MAKEUP BY JEN MAKEUP BY ARTISTSBYTIMOTHYPRIANO.COM; CARI DUPREY AT MODELS; HAIR BY YORK GEORGE CHINSEE; MODEL: SARAH/NEW PHOTO BY FASHION 8 WWD TUESDAY, MAY 1, 2012 SECTION II WWD.COM WWD MILESTONES Paul and Maurice Marciano PHOTO BY DONATO SARDELLA DONATO PHOTO BY American Dreamers Three decades after its founding, Guess has an American foundation and a global future. By Arnold J. Karr aul and Maurice Marciano agendas. The anniversary comes on discounting in the malls,” he said united Guess with perhaps the best- sound like they’re just get- the heels of what was by most mea- on the company’s March earnings known of the Guess Girls, Claudia ting started. sures an uncharacteristically difficult call. “Considering what Europe went Schiffer, and heralds a new capsule col- P Three decades after found- year for the Los Angeles-based com- through this past holiday season, we’re lection inspired by Schiffer and other ing Guess, the American- pany. Led by a 24.8 percent surge to very pleased with these results.” actresses and models who’ve become flavored jeanswear line that would more than $250 million in its expand- He was particularly pleased to be synonymous with the brand and its all- evolve into an international lifestyle ing Asian operations, overall sales able to report that the four-year-old G American, California-sun-soaked image. brand with ongoing denim “cred” and rose 8.1 percent to approach the $2.7 by Guess unit broke even in 2011 and Even with, and partially because of, 2011 revenues of $2.69 billion, the billion mark — more than quadruple was expected to turn a profit in the the big anniversary promotional push, brothers maintain a long list of corpo- the $636.6 million of 2003 — but net in- new year. Guess’s financial expectations for the rate objectives. come, hurt by a settlement charge in- Following Nancy Shachtman’s year are modest. Revenues are expect- These include far deeper penetra- volving a European logistics provider, promotion to president of all North ed to rise 1.9 to 3.4 percent to between tion of the Internet and social media; fell 8.3 percent to $265.5 million. It was American operations in March 2011, $2.74 billion and $2.78 billion, and earn- further expansion of their 1,559-store the first decline since the company reg- little effort was spared to upgrade the ings, limited by increased marketing retail network in the U.S. and abroad; istered a net loss back in 2002, which firm’s women’s assortments, an initia- investment and unfavorable currency continuing development of the more was the firm’s only deficit in 15 years tive that officials inside and outside translation, are forecast to decline to youth-oriented, lower-priced G by as a public company. the company said met with consider- between $2.50 and $2.65 a diluted share. Guess brand even as it continues to Paul Marciano considers the 2011 able success. The same energy is ex- That guidance, issued on March 14, sent fine-tune the flagship Guess label; re- numbers a minor stumble, indicative pected to be invested in men’s wear the company’s shares down more than entry into the Brazilian and Japanese of efforts to maintain and even bur- and accessories this year, even as the 10 percent the following day, to $32.97, markets, and perhaps new or revisited nish the Guess brand amid challenging company invests more heavily in off- and they’ve yet to regain the ground ventures in categories such as lingerie macroeconomic conditions. Even in a line as well as online marketing to they lost, closing at $29.28, up 0.2 per- and home. frantically bargain-oriented holiday commemorate its anniversary and fur- cent, on Monday. The stock hit a 52-week With Paul serving as chairman and environment, brand integrity remained ther elevate brand visibility. high of $45.73 on the last day of May chief executive officer and Maurice the focus. Go to guess.com and there’s already 2011. The final price on Monday values now in the role of non-executive chair- “We managed our resources care- a “30 Gifts in 30 Days” promotion in the Marcianos’ 26.7 percent stake at man following his official retirement fully, especially on inventories, pro- place to promote the firm’s “30 Sexy about $818.5 million, $455.1 million for in January, the 30th anniversary will tecting our brand through the holiday Years.” The same tag line appears on Maurice and $363.4 million for Paul. be anything but the only item on their season, avoiding much of the massive the anniversary ad campaign that re- {Continued on page 10} 10 WWD TUESDAY, MAY 1, 2012 SECTION II WWD.COM WWD MILESTONES Guess’ Global Retail Presence Current totals and projections for stores. AMERICAS EUROPE & MIDDLE EAST ASIA 575 561 423 720 – 740 850 – 875 720 – 750 KEY Q2011 TOTAL STORES 2011: 1,559 STORES IN 87 COUNTRIES QPROJECTED 2016 STORES 2016: 2,290 – 2,365 STORES WORLDWIDE {Continued from page 8} “Domenico De Sole,” he fired off By the turn of the century, brand The recent performance on Wall without hesitation, speaking of the messaging was of necessity taking a Street clearly isn’t something that former president and ceo of Gucci back seat to the company’s viability in TIMELINE pleases the Marciano brothers, who’ve Group. “To do what he did — take a the marketplace. felt Wall Street’s wrath before, but brand that was nearly extinguished, By the time its higher-priced it’s hardly something that keeps them apply his vision and then bring in stonewashed denim jeans in flat- Highlights through awake at night in the homes they oc- Tom Ford, a designer with the same tering fits began to catch on, first at the years. cupy, within easy walking distance of kind of vision — is just extraordinary. Bloomingdale’s and later at such better each other, in Beverly Hills. Having Together, they built back Gucci from specialty stores as Fred Segal, Maurice, 1977: Maurice becomes the first been private and public, sole owners the ashes in the Nineties, and it was Paul and their brothers Georges and of the four Marciano brothers to and partners, they take a decidedly consistency and execution that did it. Armand already were veterans of settle in California. more long-term view. He’s a real architect.” European and then American retailing. QFirst retail store opens in Century They offer similar expressions of ad- Seeking expertise in wholesaling, the City, Calif. Others follow in Beverly ‘FIVE-POCKET HERITAGE’ miration for Lew Frankfort and Reed four brothers had sold half their busi- “What we have done in the last 30 Krakoff ’s work as brand resuscitators ness to Jordache Enterprises’ Nakash Hills and New York. years is build a lifetime asset,” said at Coach, as well as for the many brand- brothers in 1983, and the legal fight to Paul. “Maurice and I, coming to the building successes of Ralph Lauren. regain ownership took the better part 1981: Bloomingdale’s in New York U.S. from France, had a vision of Kismet brought the brothers together of a decade to resolve, finally ending buys, and quickly sells, 24 pairs something American, a brand that with Lauren on a European airline with a jury’s determination that the of Guess jeans in December. was young, sexy and adventurous, and flight in 1985, leading not only to a high- Nakashes had fraudulently induced we’ve never changed that vision. It was altitude brainstorming session but to the Marcianos to sell them a 51 percent 1982: Paul Marciano creates Guess based on denim, with the authenticity subsequent meetings with Lauren in stake. The jury returned full ownership Advertising and begins creating of denim. It’s our five-pocket heritage, New York. Paul called Lauren “the per- of the company to the founders. groundbreaking marketing imagery. what made the brand Guess. With what son I respect most in the industry” and No sooner was that conflict settled you attach to that image, you create his work “legendary.” than cracks began to appear in the something permanent and lasting. bond between the brothers themselves. 1983: Guess Men makes its debut. “It takes a long time to do that and VISIBILITY AND CONFLICT The Marcianos’ own M.G.A. stores were yet it’s very easy to destroy,” he added. Guess has amassed some significant experiencing strong sell-throughs on 1984: Guess launches Baby Guess While “young, sexy and adven- accomplishments of its own in its 30 their own higher-priced, fashion-fo- and Guess Watches. turous” are the three adjectives as- years, emerging as the dominant sur- cused Guess jeans as well as some of cribed to the brand, nouns imme- vivor of the status jeans craze of the the French imports they carried even 1985: First black-and-white ads shot by diately flow forth when the subject Eighties that presaged the premium as department stores were promoting photographer Wayne Maser appear in turns to the corporate attributes they jeans boom of the last decade.
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