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GUESS SWOT & PESTLE ANALYSIS

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Company Name : Guess

Company Sector : Fashion and Lifestyle

Operating Geography : North America, Europe

About the Company : Guess an American clothing brand and retailer. In addition to clothing for

both men and women, the company also sells a wide range of fashion accessories such as

watches, jeweler, perfumes, and shoes. Guess was founded in 1981 by Georges Marciano, and his

brothers Maurice Marciano, Paul Marciano, and Armand Marciano with its headquarters in Los

Angeles. The company was one of the first companies to create designer jeans. At the beginning,

the jeans were mainly designed for women, they started a men’s line in 1983. GUESS operates in

fast-moving global markets serving the style-conscious consumer through the iconic GUESS

brand image. Their designers travel throughout the world to monitor fashion trends and

discover fabrics that inspire new lines and collections. GUESS has a number of trademarks under

its wing, which includes GUESS, GUESS? GUESS U.S.A., GUESS Jeans, GUESS? and Triangle Design,

MARCIANO, Question Mark and Triangle Design, a stylized G and a stylized M, GUESS Kids, Baby

GUESS, YES, G by GUESS, GbG, GUESS by MARCIANO and Gc.

As of February 2020, the company had over 4,900 U.S. and internationally registered trademarks

or trademark applications pending with the trademark offices in over 175 countries around the

world, including the U.S. Guess And Marciano apparel products are designed by their own

separate in-house design teams located in the U.S., Switzerland and South Korea. The company

also derives significant royalty revenue from licensing activities across the globe. Guess sells its

products through both domestic and international wholesale distribution channels as well as

licensee operated retail stores and concessions. GUESS had approximately 15,800 employees

globally as of February 2020.

Guess mission statement states that “We are committed to being a worldwide leader in the

fashion industry.” GUESS is one of the pioneer companies to have manufactured designer denim,

certainly, its USP or Unique Selling Proposition lies in being one of the most popular brands for

possessing a full range of stylish designer and high-quality denim, apparel and accessories. The

company is also well known for its unparalleled styling, precise fitting, and high-grade quality

clothes that have a long-lasting life.

Revenue :

US$ 2.68 billion – FY ended 1st Feb 2020 (y-o-y growth of 2.6%)

US$ 2.61 billion – FY ended 1st Feb 2019

SWOT Analysis :

The SWOT Analysis for Guess is given below:

Strengths Weaknesses

1.Brand equity source of sustainable

competitive advantage

2.Multiple distribution channels across the

globe

3.Strong management and excellent corporate

strategies

4.Strong relation with reliable suppliers

5.Guess personalized shopping application for

tech-savvy customers

6.Agile and responsible supply chain

1.Multiple cases of labor laws violations

2.Negative publicity due to harassment

allegations

Opportunities Threats

1.Market growth of Denim Jeans

2.Emergence of e-commerce

3.Increased penetration in key categories

including denim, Marciano, men’s and

handbags

4.New dynamics creating future consumer

opportunities

1. Demand shock due to Corona virus outbreak

2. Slowing customer traffic in malls or outlet

centers

3. Risk in global business

4. Adverse environmental impact of jeans

manufacturing

PESTLE Analysis :

The PESTLE Analysis for Guess is given below:

Political Economical

1.2017 Tax Cuts and Jobs Act in the U.S

2.Impact of US- China trade war on sourcing

1. Impact of foreign currency volatility

2. Dependency on Credit Market

3.Impact of Covid-19 on business and fashion

industry

Social Technological

1.Change in fashion taste of customers

2.Evolving consumer expectations and

behaviours

1.Adopting latest PLM and ERP technologies

2.Bringing artificial intelligence to fashion

Legal Environmental

1.Sweatshop allegations by employees

2.Gucci logo infringement allegations against

GUESS

3.Increased need for Data Privacy

1. Increasing the environmental sustainability

of products

2. Implementing sustainable sourcing policies

3. Increase in environment friendly practices

in operations

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