LOS ANGELES, Sept 25, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Guess?, Inc. (NYSE: GES) today announced that it has entered into a joint venture agreement for Mexico with an affiliate of Grupo Axo, a Mexican company that helps the development of internationally known brands, such as Coach, DKNY and Tommy Hilfiger, in Mexico. The joint venture, a majority of which is owned by Guess?, will engage in the manufacture, wholesale distribution and retail sale of Guess? fashion apparel, accessories and other related products in Mexico. The first Guess? retail store under the joint venture opened in May 2006 in Mexico City and the second one opened in Cancun in July 2006.
Paul Marciano, Co-Chairman and Co-CEO of Guess?, Inc., commented, "The formation of our new Mexican joint venture is another step forward in our international expansion. The Guess? brand is already well recognized in Mexico as we had an apparel license in this region for over twenty years until 2004. We believe Mexico is an exciting opportunity for Guess?." Mr. Marciano added, "We have experienced incredible success with Guess? in Canada which also started out as a joint venture in 1994 and is now a wholly-owned subsidiary of Guess? and one of our best performing regions. We hope to achieve similar success with our joint venture partners in Mexico."
Andres Gomez, Co-CEO of Grupo Axo, stated, "During our first year of operations in Mexico, we plan to position Guess? as one of the top fashion brands as we look to further expand the presence of Guess? in Mexico." Alberto Fasja Cohen, Co-CEO of Grupo Axo, added, "Our growth strategy for Mexico over the next several years includes the opening of several free standing stores and over 50 shop-in-shops within leading department stores."
Guess?, Inc. designs, markets, distributes and licenses a lifestyle collection of contemporary apparel, accessories and related consumer products. At August 26, 2006 the Company owned and operated 326 retail stores in the United States and Canada. The Company also distributes its products through better department and specialty stores around the world. For more information about the Company, please visit www.guess.com.
Grupo Axo is a leader in the development of prestigious international brands and products in Mexico, with primary focus on the fashion and hospitality industries. At August 31, 2006 Grupo Axo owned and operated 39 retail stores and over 300 shop-in-shops throughout Mexico.
Except for historical information contained herein, certain matters discussed in this press release, including statements concerning the Company's future growth plans and prospects for its new joint venture in Mexico, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are only expectations, and involve known and unknown risks and uncertainties, which may cause actual results in future periods to differ materially from what is currently anticipated. Factors which may cause actual results in future periods to differ materially from current expectations include, among other things, our ability to successfully execute our Mexico joint venture strategies, including to effectively position the Guess? brand and expand the presence of Guess? in Mexico through retail stores and shop-in-shops, anticipate consumer preferences, effectively manage inventories, and general economic conditions and consumer confidence in Mexico. In addition to these factors, the economic and other factors identified in the Company's most recent annual report on Form 10-K and other filings with the Securities and Exchange Commission, including but not limited to the risk factors discussed therein, could cause actual results to differ materially from current expectations.
Contact: Carlos Alberini
President & Chief Operating Officer
(213) 765-3582
Dennis R. Secor
SVP & Chief Financial Officer
(213) 765-3289
Joe Teklits
ICR
(203) 682-8258
SOURCE Guess?, Inc.
Carlos Alberini, President & Chief Operating Officer, +1-213-765-3582, or Dennis
R. Secor, SVP & Chief Financial Officer, +1-213-765-3289, both of Guess?, Inc.;
or Joe Teklits of ICR, +1-203-682-8258, for Guess?, Inc.
http://www.prnewswire.com