Guess?'s (GES) Strategic Plan Aids Growth, Cost Pressures Ail

Core Insights - Guess?, Inc. is leveraging its global platform for business growth, supported by a strong management team and a commitment to six key strategies [1][3] - The company is optimistic about fiscal 2025, expecting to exceed $3 billion in revenues for the first time, with projected revenue growth of 10.7-12.7% [3][4] Growth Drivers - The company is experiencing robust brand momentum and positive customer response, with first-quarter net revenues rising year over year and surpassing estimates [2] - Significant progress has been made in reducing SKUs by 30% and streamlining retail assortments to enhance productivity [5] Strategic Initiatives - Guess? is focused on brand elevation, improving product quality, visual merchandising, and enhancing the customer shopping experience both in-store and online [6] - The strategic business plan emphasizes organization, culture, brand relevance, customer focus, product excellence, and international presence [4] Challenges - The company faces rising operating costs, with SG&A expenses increasing to 45.1% of sales from 40.6% year over year [7] - Supply chain disruptions and inflation are impacting consumer spending and operational costs, particularly in the Americas [8]