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Guess (company)

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Guess, Inc.
Company typePublic
IndustryFashion
Founded1981; 43 years ago (1981)
Founders
Headquarters
Los Angeles, California, U.S.
Number of locations
1,608 (2023)
Key people
  • Carlos Alberini (CEO)
  • Paul Marciano (Chairperson and CCO)
  • Maurice Marciano (Director)
  • Alexander Grujicic (Head Designer)
ProductsClothing, accessories
RevenueIncrease US$2.69 billion (2023)
Decrease US$248.2 million (2023)
Decrease US$149.6 million (2023)
Number of employees
c. 12,500 (2023)
Websitewww.guess.com
Footnotes / references
[1]

Guess Inc. (styled as GUESS or Guess?) is an American clothing company, notable for its black-and-white advertisements. Guess licenses its brand on other fashion accessories, such as watches, jewelry, perfumes, bags and shoes.

History

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20th century

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The Guess emblem with the question mark in the center

Guess began in 1981 as a book of styles started by Georges, Maurice, Armand, and Paul Marciano. The brothers switched to selling jeans with a light, form-fitting denim and zippers at the ankles.[2][3] Guess began offering licensed products, including watches, eyewear, and a fragrance line. In 1985, it introduced black-and-white advertisements, which went on to win numerous design awards. Its fashion models have included a number of supermodels, many of whom first achieved prominence via these ad campaigns.[2] In the 1985 Robert Zemeckis movie, Back to the Future, Marty McFly (Michael J Fox) wore Guess's denim clothing.[4]

Georges had wanted to sell Guess products in only the more exclusive stores, such as Bloomingdale's, while the other brothers decided on a broader distribution strategy, which included discount stores. Georges continued to oppose the idea of marketing Guess products beyond luxury retail outlets, and different alliances formed within the company. Georges abruptly sold his stake in the company to his brothers in September 1993, for $214.2 million. To finance the purchase, the remaining three brothers borrowed $210 million, and $105 million was still outstanding three years later. To raise money, the brothers took Guess public in July 1996.[2][5]

By the end of the 1990s, sales dropped and Guess reduced its expansion plans to concentrate on improving investment returns.[2]

21st century

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On January 26, 2001, Guess Inc. restated previous results for fiscal year 2000 after writing down impaired inventory.[6] In 2004, the accessories department was greatly expanded and several stores across the US were redesigned. Guess also created a lower priced collection sold exclusively through its outlet locations, and introduced its first brand extension, the upscale female line of clothing and accessories, named Marciano.[7]

Guess continued its Guess Kids clothing line in the early 21st century. In 2006, it began promoting the line through its factory retail stores. It continued to be guided by the Marciano brothers, as co-chairmen and co-CEOs. Maurice Marciano has overseen the design and its sales growth, while Paul managed the image and advertising. The company operates in many countries around the world with the majority of its stores located in the United States and Canada.[1]

In 2012, 23 years after first posing for the brand, supermodel Claudia Schiffer posed again for Guess's 30th anniversary.[8]

In August 2015, Victor Herrero replaced Paul Marciano as CEO in August 2015.[9] In February 2019, it was announced that Victor Herrero will be stepping down from his position as CEO with Carlos Alberini selected as his replacement.[10]

In 2017, Camila Cabello was announced as the new face of Guess.[11] As of 2018, Jennifer Lopez became the face of Guess.[12]

Controversies

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Worker conditions

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During the 1980s, Guess was accused of using underground sweatshop contractors in Los Angeles.[13] Initially, the company threatened to close or move its operations in factories where employers complained of sweatshop practices.[14] In 1992, Guess contractors faced litigation from the US Department of Labor (DOL) due to failure to pay their employees the minimum wage or adequate overtime. Rather than face a court case, $573,000 in back wages were paid to employees.[15][16] The company also agreed to be subjected to a voluntary monitoring agreement with DOL to prevent sweatshop practices among its subcontractors.[17] Guess earned a place on the labor department's 'Trendsetters List', but this position was suspended several years later in 1996 after independent inspectors found violations of regulations at seven of the company's contractors.[18]

In the same year, the company was sued by the Union of Needletrades, Industrial and Textile Employees (UNITE), again due to the failure to pay the minimum wage or overtime to workers. The settlement, supervised by the US Department of Labor, saw the reinstatement of eight workers found to have been illegally fired and another $80,000 in back pay given to workers. Almost immediately after the settlement, Guess announced that it was moving its sewing production to Mexico. The company denied that the move was related to these court cases, but its public image continued to suffer.[19][20]

Throughout the 1990s, UNITE continued a public relations campaign against Guess, focusing on the experiences of former employees. Billboards subsequently appeared in Las Vegas, Los Angeles, and New York City featuring a photograph of Rage Against the Machine with the caption "Rage Against Sweatshops: We Don't Wear Guess – A Message from Rage Against The Machine and UNITE. Injustice. Don't buy it."[21] Eventually, Guess countered with a defamation suit against Unite and several of its officials, while in 1997 the company ran full-page ads in many major American newspapers claiming that its contractors were "guaranteed 100% free of sweatshop labour". The wording of these ads was changed after federal authorities complained that the claims had not been made by anyone in the government and had no official status.[citation needed]

A December 2023 report funded by the Progressive Alliance of Socialists and Democrats found Guess's Chinese supplier had connections to forced Uyghur labor.[22]

"Ski Colombia" T-shirts

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In 2005, Guess pulled a line of T-shirts from the market after Erika Becker-Medina,[23] a D.C. area resident and government employee, spearheaded a campaign calling for the boycott of the company. "Ski Colombia: Always Plenty of Fresh Powder" was embossed on the T-shirts which were released by the company in the second quarter of 2005, apparently in reference to Colombia's drug-trafficking problem. Guess distributed letters of apology.[24]

Gucci logo infringement

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In 2009, Italian luxury brand Gucci accused Guess of counterfeiting and trademark infringement on the Gucci logo and the interlocking G's which appear on pairs of Guess shoes. In 2012, Gucci was awarded $4.7 million in damages; originally, the Italian brand had asked for $221 million.[25]

Street artist lawsuit

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In 2022, Banksy posted on Instagram and encouraged his fans to steal items from a Guess clothing store, alleging the company used his images without permission.[26] He stated: "They've helped themselves to my artwork without asking, how can it be wrong for you to do the same to their clothes?" The company said the collection was created in collaboration with Brandalised, which licenses designs by graffiti artists.[27]

In 2024, a lawsuit was filed against Guess, accusing the brand of stealing the intellectual property of several street artists for its "graffiti inspired" clothing line. The suit was filed in California’s Central District and concerns Guess's alleged use of the tags of both Sean Griffin ("Nekst") and Robin Ronn ("Bates").[28][29]

References

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  1. ^ a b "Annual Report FY2023" (PDF). Guess, Inc. Retrieved 2024-02-12.
  2. ^ a b c d Grant, Tina (February 25, 2005). International Directory of Company Histories. Vol. 68. Detroit, Michigan: St. James Press. ISBN 978-1-55862-543-3. OL 8607128M – via Funding Universe.
  3. ^ "Guess Founder Returns with New Denim Line". California Apparel News. July 2, 2014. Retrieved 2022-09-02.
  4. ^ Brockes, Emma (10 April 2009). "Emma Brockes talks to Michael J Fox about Parkinson's disease". The Guardian. Retrieved 2022-08-17.
  5. ^ Hsu, Tiffany (2015-07-15). "New CEO to succeed Paul Marciano at Guess". Los Angeles Times. Retrieved 2022-09-07.
  6. ^ "Guess? warns of Q4 loss, weaker-than-expected 2001". Dow Jones Reuters.
  7. ^ Sofroina Timmons. "GUESS! Who? GUESS by Marciano!". Archived from the original on 2018-08-12. Retrieved 2012-02-06.
  8. ^ Krupnick, Ellie (28 March 2012). "PHOTOS: Claudia Schiffer Returns To Guess For 30th Anniversary". Huffington Post.
  9. ^ "Guess founder Marciano to step down as CEO". LA Biz.
  10. ^ "Guess CEO Victor Herrero to step down". Reuters. 28 January 2019.
  11. ^ "Camila Cabello Just Did the ONE Thing She Never Did With Fifth Harmony". Teen Vogue. Retrieved 2018-11-30.
  12. ^ "Jennifer Lopez announced new face of Guess Spring 2018 campaign". Grazia Australia. Retrieved 2018-11-30.
  13. ^ Mize, Ronald L.; Swords, Alicia C. S. (2010). Consuming Mexican Labor: From the Bracero Program to NAFTA. Toronto: University of Toronto Press. p. 75. ISBN 978-1-4426-0158-1.
  14. ^ Ross, Andrew (1997). No Sweat: Fashion, Free Trade and the Rights of Garment Workers. New York: Verso. p. 212. ISBN 978-1-85984-172-3.
  15. ^ "Guess? What". New Internationalist Magazine. 5 June 1998. Retrieved 6 February 2012.
  16. ^ "All in the Jeans". Slate Magazine. Retrieved 6 February 2012.
  17. ^ Milkman, Ruth (2006). L.A. Story: Immigrant Workers and the Future of the U.S. Labor Movement. New York: Russell Sage Foundation. p. 165. ISBN 0-87154-635-3.
  18. ^ Justice, National Interfaith Committee for Worker (1998). Cross Border Blues: A Call for Justice for Maquiladora Workers in Tehuacán. National Interfaith Committee for Worker Justice. p. 1.
  19. ^ White, Michael (August 15, 1977). "Guess? what: Sweatshop labor upsets union-backed students". Daily Press (Victorville, California). Associated Press. p. D2. Retrieved February 10, 2022 – via Newspapers.com.
  20. ^ White, Michael (October 9, 1977). "Guess? looks to Mexico to beat heat". St. Cloud Times (St. Cloud, Minnesota). Associated Press. p. 6C. Retrieved February 10, 2022 – via Newspapers.com.
  21. ^ "RATM: timeline". 21 November 2007. Archived from the original on 21 November 2007.
  22. ^ Tailoring Responsibility: Tracing Apparel Supply Chains from the Uyghur Region to Europe (PDF). Uyghur Rights Monitor, the Helena Kennedy Centre for International Justice at Sheffield Hallam University, and the Uyghur Center for Democracy and Human Rights. December 2023. p. 20.{{cite book}}: CS1 maint: date and year (link)
  23. ^ "Guess Clothing Stores Quit Selling Drug T-Shirt". MTV. Archived from the original on January 21, 2008.
  24. ^ "Guess Who's Unhappy With the IRS?". Brown & Company. Retrieved 6 February 2012.
  25. ^ "Gucci and Guess End Nine-Year Trademark Dispute". The Business of Fashion. 2018-04-19. Retrieved 2019-09-04.
  26. ^ Karen K. Ho (November 18, 2022). "Banksy Appears to Encourage Fans to Steal from Guess after Brand Uses His Art in Clothing Capsule". ARTNews.
  27. ^ "Banksy accuses clothing brand Guess of 'helping themselves' to his artworks". BBC. November 18, 2022.
  28. ^ Daniel Cassady (February 6, 2024). "Major Street Artists Sue Clothing Brand Guess, Accusing Them of Stealing Their Work". ART News.
  29. ^ Deborah Belgium (January 17, 2024). "Two Graffiti Artists Sue Guess Inc. and Macy's Over Use of Their Artwork". WWD.
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