Latest news with #Alberini
Libya Observer
28-06-2025
- Business
- Libya Observer
Italian ambassador highlights role of economic ties in Libya's stability
Italy's Ambassador to Libya, Gianluca Alberini, has stressed the importance of economic cooperation as a means to promote political stability in the country. Speaking to Italy's Nova news agency during the Italian-Libyan Economic Forum in Benghazi, Alberini described Libya as still politically fragmented and facing complex institutional challenges. He said Italy is playing an active role in helping restore Libyan institutions, support national unification, and drive economic development. The ambassador welcomed the strong participation of local officials in the forum, particularly the mayor of Benghazi. Alberini also pointed to efforts by the Italian embassy in Tripoli and consulate in Benghazi to assist Italian companies and citizens, facilitate visa procedures for Libyans, and deepen bilateral cooperation. He noted progress in the field of education, describing it as a foundation for balanced and collaborative local development. Tags: Gianluca Alberini Libyan-Italian economic forum
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.
Yahoo
14-04-2025
- Business
- Yahoo
Guess? projects FY26 revenue growth as FY25 earnings drop 70%
Guess? saw a significant unrealised loss of $60.7m in FY25 due to the revaluation of derivatives linked to the company's convertible senior notes due in 2028 and associated convertible note hedges. Total net revenue for the fiscal showed an increase of 8%, reaching $3bn up from $2.78bn in fiscal 2024. Revenue streams varied by region, with Europe and Americas retail experiencing a growth of 7% in constant currency. However, Asia faced a downturn with revenues falling by 5% in US dollars and 2% in constant currency. Licensing revenues enjoyed growth, rising by 10% in both US dollars and constant currency. Earnings per share (EPS) of Guess? on a GAAP diluted basis saw a reduction of 75% to $0.77 for FY25, down from $3.09 in FY24. The company's EPS was influenced by share repurchases, which had a beneficial effect of $0.03, and currency fluctuations, which had a detrimental impact of $0.23. The retailer's operating earnings on a GAAP basis for FY25 were down by 34% to $173.8m, this figure includes gains from the sale of the US distribution centre totalling $13.8m during the second quarter and was impacted by unfavourable currency translation effects amounting to $15.7m. The operating margin on a GAAP basis fell by 3.7% to 5.8%, down from 9.5% in fiscal 2024. Guess? chief executive officer Carlos Alberini said: 'During the year, we delivered solid results with our Licensing segment and our wholesale businesses in Europe and the Americas, but missed our plans for our direct-to-consumer business due to slower customer traffic in North America and Asia. Importantly, this year we reached a significant milestone for our company, as we executed our first acquisition in Guess's history, with the addition of Rag & Bone to our portfolio.' During the quarter ending 1 February 2025, Guess? posted net earnings of $81.4m, marking a decrease of 29% from the $115.3m recorded during the equivalent quarter of the previous year. The diluted EPS for Q4 dropped by 32% to $1.16 compared to $1.71 for the corresponding quarter last year, with share buybacks positively contributing $0.05 and currency movements negatively impacting EPS by $0.13. For the same quarter, net revenue rose by 5% to $932.3m from $891.1m year-on-year; this represented a constant currency increase of 9%. Revenue changes across regions during this quarter included a modest rise of 2% in Europe when measured in US dollars and Americas retail saw an uptick of 4% in US dollars. Asia faced a more pronounced decline with revenues dropping by 15% in US dollars. Licensing revenues surged by 18% across both metrics. Alberini added: 'The growth in the period was primarily driven by the Rag & Bone acquisition coupled with positive momentum in our wholesale businesses in Europe and the Americas and increased licensing revenues.' The company's earnings from operations decreased by 28.4% to $103.6m in Q4 FY25, which included negative impacts due to unfavourable currency translation totalling $6.4m, compared with $144.8m for the same period last year. Operating margin on a GAAP basis for this quarter fell by 5.2% to reach an 11.1% down from last year's figure of 16.3%. Guess? forecasts an increase in net revenue ranging between approximately 3.9%-6.2% in fiscal 2026 (FY26). It also projected operational earnings between $133m and $165m, with expectations for GAAP diluted EPS between $1.03 and $1.37 and anticipates an improvement in operating margins ranging from roughly 4.3%-5.2%. For Q1 FY26, Guess? anticipates consolidated net revenue growth between nearly 5.8-7.5%. It projects operational losses between $35m and $30m with anticipated diluted loss per share ranging from approximately $0.75 to $0.66. Alberini has indicated that the company is shifting its strategic focus towards enhancing productivity in direct-to-consumer sales on a global scale and boosting profitability by streamlining its business and portfolio. As part of this strategy, the company is considering transitioning out of its direct operations in Greater China, which it has managed for many years. The aim is to hand over the market development to a local partner with extensive experience. Discussions with several prospective partners are underway, with the goal of completing this change before the current fiscal year concludes. In North America, Guess? plans to refine its network of full-price stores by closing down locations that do not align with its strategic goals or are not profitable. Additionally, it is looking to cut costs by consolidating some of the infrastructure that supports their operations in this region. He added: 'Our fiscal 2026 outlook includes the anticipated impact from these actions and we expect that, together, they will unlock approximately $30m in operating profit in fiscal 2027.' Last month, Guess?' partner on the Rag & Bone acquisition, WHP Global, submitted a proposal to acquire the US fashion brand with an industry insider noting it has the potential for expansion. "Guess? projects FY26 revenue growth as FY25 earnings drop 70%" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. 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Yahoo
07-04-2025
- Business
- Yahoo
Guess? to exit some retail stores in North America to boost profit by FY27
Fashion clothing and accessories Guess? has disclosed plans to streamline operations and optimise its portfolios in China and North America. The company intends to turn over its direct operations in China to a local partner. Guess? chief executive officer Carlos Alberini stated: 'As we enter fiscal year 2026, we are excited about our growth opportunities for our core Guess business, our recently launched Guess Jeans brand and our just acquired rag & bone business. We are focusing our strategic initiatives on increasing direct-to-consumer sales productivity globally and improving profitability through business and portfolio optimisation. "In connection with this, after many years of running our own direct operations in Greater China, we believe there is an opportunity for this market to be directly developed and managed by a local, highly experienced partner. We have already met several potential candidates for consideration and we expect for this transition to be completed before the end of this fiscal year.' The company also revealed a planned exit from certain retail stores in North America. Alberini continued: 'In North America, we see an opportunity to streamline our Guess full price store portfolio by exiting non-strategic, unprofitable locations, and to reduce costs by consolidating some of our infrastructure supporting this business. Our fiscal 2026 outlook includes the anticipated impact from these actions and we expect that, together, they will unlock approximately $30 million in operating profit in fiscal 2027.' The developments were revealed as the company announced its fourth quarter and full fiscal year 2025 (FY25) operational performance results. It reported a significant contraction in net earnings, down 70% to $60.4m for FY25 from the previous year's $198.2m. Earnings include an unrealised loss of $60.7m stemming from a revaluation of derivatives linked to the firm's convertible senior notes maturing in 2028, and associated hedge instruments. A substantial reduction was also observed in the company's diluted earnings per share, which fell 75% to $0.77 based on generally accepted accounting principles (GAAP), compared to $3.09 in FY24. Despite these challenges, Guess? experienced an 8% surge in total net revenue, reaching $3.00bn for the fiscal year concluding on 1 February 2025, up from $2.78bn the previous year. Operational earnings for Guess? in FY25 were adversely affected, witnessing a 34% decline to $173.8m from $263.3m recorded in fiscal 2024. In the fourth quarter of fiscal 2025, Guess? saw net earnings of $81.4m, marking a decrease of 29% from the corresponding quarter of the previous year, which stood at $115.3m. This included an unrealised loss of $18.9m due to derivative revaluation. EPS for the company during this quarter dropped by 32% to $1.16, while total net revenue for the period increased by 5% to $932.3m from $891.1m in the same quarter of the preceding year. GAAP operational earnings for the fourth quarter also decreased 28.4% to $103.6m compared to $144.8m in the same quarter of the previous year. The company ended the fiscal year with a total of 1,070 directly operated retail stores the Americas, Asia and Europe. Looking ahead to fiscal 2025, Guess? projects a net revenue increase ranging from 3.9% to 6.2%. The company anticipates operational earnings between $133m and $165m and projects an operating margin expansion of between 4.5% and 5.4%. On 2 April 2024, Guess? completed its acquisition of New York fashion label rag & bone through a partnership with WHP Global, acquiring all operating assets and assuming related liabilities of rag & bone's business operations. The company formed a joint venture with WHP Global that acquired rag & bone's intellectual property rights, integrating them into its existing business segments. In March 2025, WHP Global and Guess? reached a new licensing agreement with Signal Brands to boost the development of New York-based fashion brand rag & bone's handbags and small leather products line. In separate development, Guess? appointed Alberto Toni as the chief financial officer (CFO). Dennis Secor, who has served as interim CFO, will continue as executive vice-president until 12 September 2025 to ensure a smooth transition. "Guess? to exit some retail stores in North America to boost profit by FY27" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Miami Herald
05-04-2025
- Business
- Miami Herald
Another popular mall retailer closing stores nationwide for good
The retail climate in America has been rough for the past few years. Anchor stores - i.e., the major department stores you tend to see at either end of a mall - have shuttered in record numbers. No one could have predicted the long-lasting impact of the 2020 Covid pandemic and how it would alter shopping habits, maybe forever. Don't miss the move: SIGN UP for TheStreet's FREE Daily newsletter The pandemic kept people at home, and we all started to rely on the convenience of online shopping for everything from groceries and books to clothing and makeup. Foot traffic in malls has not returned to pre-pandemic levels, and it's hard to stay profitable if no one is walking through your door. Related: Iconic retail brand closing stores nationwide for good (locations revealed) Anchor retailers like JCPenney, Macy's, and Kohl's have faced headwinds and shut multiple locations, as have specialty stores such as Victoria's Secret. While not an anchor store at malls in the U.S. or elsewhere, specialty retailer Guess has more than 1,500 stores around the world and has been a mall staple for decades. The company was founded in 1981 by the four Marciano brothers, who moved to the U.S. from France. The brothers launched their company with a single style of jeans for women, "The Marilyn" - perhaps the original skinny jean? - which featured zippers at the ankles. The jeans were a wardrobe must-have for '80s and '90s girlies, their popularity partly driven by the brand's provocative advertising. After their launch, the jeans quickly sold out, and the company eventually added other styles, plus accessories like shoes, handbags and wristwatches. The company now has several brands under its umbrella, including Marciano and G by Guess, along with its first acquisition, rag & bone, which it acquired in 2024, in partnership with WHP Global. WHP Global also owns other popular denim brands like Joe's Jeans and G-star, among others. Related: Giant discount retailer closes stores, sounds the alarm Nearly half of Guess stores are in Europe and the Middle East. There are another 398 stores in Asia and the Pacific and 221 in the U.S., including 54 stores in California. Two of the Marciano brothers still own the company, although CEO Carlos Alberini owns a significant share of the company. In fiscal 2024, Guess's total net revenue increased 3.3% year over year to $2.78 billion but profits were way down in Q4, when Guess saw net earnings down 30% year over year to $84 million. In this month's earning's call, Alberini said the company will close 20 underperforming stores this year across North America. He said some of the stores will close when their leases end and the company will work with landlords to exit the others. The affected locations have not yet been shared publicly. Alberini cited "traffic declines" in retail stores as the reason for the closures but also said during the call that Guess plans to open new stores in Tokyo and West Hollywood. "For the full year, we expect U.S. dollar revenue growth in the range between 3.9% and 6.2%, with the core Guess brand and rag & bone both contributing significantly to that growth," he said. Closing the stores will unlock around $30 million in operating profits in fiscal 2027, according to Alberini. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
