How Fast Is Guess’s Asia Operation Expected To Grow Over The Next Five Years?

July 28th, 2016 by Trefis Team
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Guess’s Asian operation is being given the primary focus for the company’s future growth. The company is in the process of building a major business in Asia, with a focus on China, where it will more than double its number of stores. Guess’s current CEO Mr. Herrero (appointed in 2015) is known for his impressive leadership for Inditex in Asia where he built a $4 billion business from scratch. Mr. Herrero has increased his attention for Guess’s Asia business. In Q3 FY2016, the company hired a new Director each for China and a new Director of the Middle East, India, and Southeast Asia. Further, Guess has doubled its capital allocation for the Asian stores and the e-commerce business in Asia has been strengthened by a greater presence in websites like Tmall, JD.com, and Guess.cn. [1]

Hence, though we expect Guess’s overall revenue to grow at ~3% CAGR over the next five years, its Asian operation is expected to grow at a CAGR of over 6% during the same period.

ges asian

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Have more questions about Guess? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Guess

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Notes:
  1. Guess Q3 2016 Earnings Call Transcript, Seeking Alpha, Nov 24, 2015 [↩]