Guess Inc., the historic denim brand started four decades ago, saw a modest increase in first-quarter revenues, driven by the Los Angeles company’s licensing income as well as wholesale business in the Americas, which was up 21 percent.
The first-quarter revenue rise for fiscal 2025 was also aided by strong results in the label’s European and Asian stores while retail revenues in the Americas were flat.
Revenues in the first quarter ending May 4 totaled $592 million compared with last year’s $570 million. First-quarter net earnings were strong at $13 million compared with an $11.08 million net loss during last year’s first quarter.
As of Feb. 3, Guess directly operated 1,002 stores in Europe, the Americas and Asia while partners and distributors had 551 additional stores.
In a conference call on Thursday announcing the financial results, the company said it expected annual revenues for fiscal 2025 to exceed $3 billion, which would be a first for the company. That historic figure will be aided by Guess’ recent acquisition of Rag & Bone, whose annual revenues last year were estimated to be $250 million.
“We have an ambitious agenda this year that includes working with the Rag & Bone team and the launch of Guess Jeans. We are excited about our momentum,” noted Carlos Alberini, Guess’ chief executive officer since 2019. “We are well positioned to capitalize on the opportunities with a solid capital structure, strong brands, amazing products and a very capable team.”
Rag & Bone was acquired last February by Guess and brand management firm WHP Global and is operating as an independent entity within the portfolio. Guess owns all of the Rag & Bone operating assets, and the intellectual property is owned jointly by Guess and WHP. The purchase price was not disclosed, but Guess’ portion was worth $56.5 million with an earn-out that could add $12.8 million to the price.
This week, it was announced that longtime apparel industry veteran Andre Rosen would become the executive chair of the New York-based Rag & Bone. Following an early career at Calvin Klein, he cofounded Theory in 1997 and oversaw the company’s growth as CEO for more than 20 years.
This month, Guess Jeans, a new label helmed by Nicolai Marciano, the son of Guess creative director Paul Marciano, opened its first store in Amsterdam. It is trying to resurrect the company’s initial commitment to denim. More stores will appear in Europe this summer and a U.S. store will debut on Melrose Avenue in West Hollywood later this year.
