Guess? Earnings Call Nuggets: North American Retail and Market Structure Outlook
Guess? Inc (NYSE:GES) recently reported its second quarter earnings and discussed the following topics in its earnings conference call.
North American Retail
Betty Chen – Wedbush Securities: Congratulations on a great quarter in a tough environment. I also want to congratulate Michael and Sandeep for the new promotion. My question is regarding North America Retail, if I could; certainly, very nice improvement versus Q1. Could you give us a little bit more color? It sounds like some of the bias towards opening price points is resonating with that customer base on denim, dresses et cetera. If you can tell us a little bit more about that and if we should expect a penetration of opening price point items to continue into the back half? Then, also related to that, any sort of color by brand?
Russell Bowers – VP and CFO, North American Retail: Just to talk about why business got better in the quarter. I think that the big thing we did is we improved the assortment. We told a much clearer story within our stores and the inventory mix was focused on categories that were really trending well such as denim and dresses. Throughout the quarter, we kept our inventories clean, and we developed some targeted promotions that really paid for us and brought people into our stores. As far as the opening price points go, the changes we’ve made this month have been successful, and I say that especially with the denim, and I mean that, denim on the women’s side primarily. The customer really likes that product and we’ve seen overall denim sales really trend better in August than it did in the second quarter.