Guess' Inc. (NYSE:GES) Q2 2021 Earnings Conference Call - Final Transcript

Sep 02, 2020 • 08:00 am ET


Guess' Inc. (NYSE:GES) Q2 2021 Earnings Conference Call - Final Transcript


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Good day, everyone, and welcome to the Guess? Second Quarter Fiscal 2021 Earnings Conference Call. On the call are Carlos Alberini, Chief Executive Officer; and Katie Anderson, Chief Financial Officer.

During today's call, the Company will be making forward-looking statements, including comments regarding future plans, strategic initiatives, capital allocation and short and long-term outlook, including potential impacts from the coronavirus pandemic. The Company's actual results may differ materially from current expectations based on risk factors included in today's press release and the Company's quarterly and annual reports filed with the SEC.

Comments will also reference certain non-GAAP or adjusted measures. GAAP reconciliations and description of these measures can be found in today's earnings release.

Now I would like to turn the call over to Carlos.

Carlos Alberini

Thank you, operator.

Good morning and thank you, all, for joining us today. Once again, I hope all of you and your families are safe and healthy during these unprecedented times. As you know, Maurice Marciano was injured in a bicycle accident recently. He is under great care, but we expect this will be a long recovery process for him. On behalf of Paul, our Board and our entire Guess? family, we pray for his fast and full recovery. Maurice is an amazing person. He is very strong. And we all hope to get him back soon.

In the next few minutes, I will speak about the overall environment and our Company, then I will touch on our second quarter results and I will close with how I see our outlook for this year and into the future.

I'm sure I speak for everyone on this call when I say that we all continue to be tested with the pandemic and its impact on life. At Guess?, we are managing through the situation with our eyes on the road and our hands firmly on the steering wheel. I'm very proud that our teams around the world continue to rise to the challenge imposed by this crisis in an extraordinary way. I believe that the progress we made in the second quarter, both with our financial results and with our initiatives to better position the Company for the future, demonstrates our team's strong leadership, their relentless hard work and their amazing commitment to our customers and our Company.

Since we last spoke, a few things have changed in the world and in our Company, and some have stayed the same. Among those things that changed, the most important one is visibility, which has improved meaningfully. Starting with our store reopenings in all regions, we have had relatively consistent performance for several weeks now. Almost across the board, we have seen a significant reduction in customer traffic from the comparable prior-year period, partially offset by the improved conversion rates. Improved visibility is helping us size our expected demand more effectively, and as a result, we can project our inventory needs more accurately, which is key to optimizing future sales, margins and profitability. Improved visibility helped us to better