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  • ALEXANDRA HARRELL

GUESS NAMED TOP LA-BASED COMPANY


THE GUESS LOGO. PACO FREIRE/SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES


Guess landed the No. 1 spot on the Top 25 Companies in Los Angeles List published by The Business Report, a digital publication for entrepreneurs, executives and investors.


“Established in 1981 by the Marciano brothers pursing the American dream, Guess redefined denim with a European influence. Their slim-fitting jean, the 3-zip Marilyn, gained popularity, leading to a long success story,” The Business Report wrote. “Guess became a symbol of a young, sexy, and adventurous lifestyle, captivating people with iconic advertising campaigns.”


Historically, those campaigns—designed by co-founder and chief creative officer Paul Marciano—have catapulted the careers of celebrities such as Anna Nicole Smith, who followed supermodel Claudia Schiffer as the face of the brand back in 1992 and eventually became a household name. Kate Upton’s modeling career also got a boost during her association with Guess, though she accused Marciano of sexual harassment in 2018. He later resigned as executive chairman as a result.


Another brother and co-founder, Maurice Marciano, left the company’s board of directors earlier this month when Guess paid millions after a shareholder lawsuit claimed the company turned a blind eye to the chief creative officer’s misconduct.


Despite the executive and legal turmoil, Guess reported “very healthy” denim trends and a “very strong” accessories business, CEO Carlos Alberini told investors during an August conference call. The company’s net sales rose 3 percent year over year in the second quarter, while net income reached $39 million, up 63 percent from 12 months earlier.


“Today, Guess is a global lifestyle brand, offering a full range of denim, apparel, and accessories in over 100 countries worldwide,” The Business Report wrote. “Recent initiatives include launching luxury beach club partnerships in Spain, Italy, and Turkey. On top of that, the company has reaffirmed its commitment to the environment with the 2023 Guess Eco Collection.”


Guess Eco—where garments are made with at least 20 percent environmentally preferred materials and sustainable production methods—first began in 2019. The original collection included fabric sourced from Italy’s Candiani Denim and featured jeans distressed using reusable stones and with pocket linings made with 30 percent recycled polyester content. In 2021, the brand’s director of corporate responsibility, Jaclyn Allen, said Guess Eco is “part of a larger movement” toward broader sustainability and circularity at Guess. In July, the company reported it’s working toward making 75 percent of its denim apparel under Guess Eco standards by 2030. It also aims to source 80 percent regenerative, recycled or organic cotton for all of its apparel brands by 2030.


Guess—which has over 1,600 stores in more than 100 countries and employs 7,000—is the only apparel company on the list, which includes Fender, the American Film Institute and Faze Clan. The Business Report did not respond to Sourcing Journal’s request for comment regarding how companies are nominated or named winners.


“Guess is honored to have earned the top spot on The Business Report’s Top 25 Companies of Los Angeles for 2023,” Alberini said. “Our dynamic and upbeat workplace culture fosters a true sense of family within our team, making it a special and rewarding environment for everyone to thrive.”







https://sourcingjournal.com/denim/denim-brands/guess-30-million-shareholder-lawsuit-sexual-misconduct-the-business-report-maurice-marciano-463370/



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