As part of Guess Inc.’s plans to further globalize the brand, the company has rolled out a line of jewelry in Europe, the Middle East and Asia.
And by next year the new international jewelry line is expected to do $100 million in retail sales, said Cindy Livingston, the president of Sequel AG, the licensing partner for Guess jewelry abroad.
During the first phase, the products are being distributed most heavily in France at the Galeries Lafayette and Printemps department stores and in Italy at smaller boutiques.
The 600 locations initially carrying the new products are also dispersed around Spain, Holland, Switzerland, Belgium, the U.K., Ireland, Russia, Turkey, and parts of the Middle East, Livingston said.
By the end of the first year, the company expects the products to be sold at 3,000 to 4,000 locations.
“In Europe, there are jewelry brands that are indigenous to each country, but as a global lifestyle brand Guess has a big space there,” Livingston said.
Sequel AG already carved out a worldwide niche for Guess watches. Launched domestically in 1984, the Guess watch line is expected to draw in excess of $800 million in retail sales this year around the world.
Lately, Guess has been making agreements, buying stakes and international licensees and taking its products to buyers overseas as part of an international expansion.
“We are realizing our dream for a global brand one day at a time,” Guess CEO Paul Marciano said. “Each product category that supports the lifestyle of the Guess customers is an integral part our brand globalization goals. Jewelry certainly meets that criteria both domestically and in the international markets.”
The European line is unique from Guess jewelry sold in the U.S., featuring European-based fashion trends at a slightly higher price point. The jewelry will range from just over $40 to more than $200 at current exchange rates.
Skechers Stock Down
Skechers USA Inc. shoe sales are healthy but the company’s share price has tumbled since the Manhattan Beach-based company’s second quarter earnings came in at 32 cents per share, well beneath the 43 cents projected by analysts.
“While we are pleased with our top-line increases, our profitability was below our previous guidance,” Fred Schneider, Skechers chief financial officer, said in a report. The profit was affected by costs related to the new Cali Gear line, and domestic and international growth, the company said.
Skechers also lowered its third-quarter profit projections from 48 cents to 43 cents because of high spending on warehouses, new stores, and marketing.
On the week ending on July 25, the share price was down 22 percent from the previous week. The price continued to fall into August, ending 11 percent down at $20 per share on Aug. 1.
Jeff Mintz, vice president of research for Wedbush Morgan Securities said he thought Skechers would bounce back, eventually.
“I think share price will probably languish for a while, as they try to fix the issues that led to the decrease, but I think we will see a resurgence,” he said.
Net sales for the company increased 21 percent in the second quarter to $352 million from $292 million in the second quarter of 2006.
Party Central
Classic Party Rentals Inc. continues its buying binge with the purchase of Raleigh-based Party Showcase, which rents supplies for high-profile events in North Carolina.
The acquisition is the third by El Segundo-based Classic since Virginia-based private equity firm Quad-C Management bought it out earlier this year. Soon after Classic was purchased, it acquired two smaller rental supply companies: Florida-based Panache Party Rentals and Buellton-based Parties a la Carte.
Hotelier Retires
Ali Kasikci announced his plans to retire from his post as managing director of the Peninsula Beverly Hills after nearly 16 years with the hotel. He is scheduled to step down on Dec. 8.
When Kasikci joined the hotel in 1992, it was losing $500,000 a month. Under Kasikci’s supervision, the Peninsula became a five-star and five-diamond hotel.
Kasikci, who also teaches hospitality at Cornell University, has not announced his plans and a replacement has not yet been named.
Staff reporter Sarah Filus can be reached at (323) 549-5225, ext. 235, or at
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