American glamour model and actress Anna Nicole Smith (1967-2007) during an in-store appearance for Guess Sportswear at the Bullock’s Store in the Beverly Center in Beverly Hills, California, 20th February 1993. (Photo by Vinnie Zuffante/Getty Images)
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Authentic Brands Group hopes to finalize its agreement to acquire a controlling ownership interest in the intellectual property of retailer Guess? According to Authentic Brands Group Chief Operating Office Corey Salter.
Speaking in Paris today at the inaugural National Retail Federation Big Show in Europe, he said that the deal is progressing well as the company, which specializes in scaling brands, seeks to revive the fortunes of the U.S. apparel retailer.
“It’s a joint venture 50/50 in IP and we see a lot of opportunities to grow that business around the world,” Salter said.
Meanwhile, Authentic Brands Group President of EMEA & India Henry Stupp stressed that strong brands retained an enduring connection with customers, which is why so many have been successfully revived after a period in the doldrums.
“Good brands find their way back, we’re fortunate that we get them on their comebacks,” he added.
Authentic Brands Expands Stable
The acquisition, first announced in August, marks another significant milestone for Authentic. With approximately $6 billion in global retail-equivalent sales, Guess? will become Authentic’s second-largest brand, bringing its portfolio-wide annual retail sales to $38 billion globally, the company estimates.
Under the transaction structure, Authentic will own a 51% stake in a newly formed entity that will own and license substantially all of Guess?’s intellectual property and assume the vast majority of Guess?’s product licensing agreements. The remaining 49% of this entity will be owned by Guess? Co-Founders Maurice and Paul Marciano, Nicolai Marciano and Guess? CEO Carlos Alberini.
The Guess? operating entity and its subsidiaries will be taken private and be wholly owned by the current management team. The operating company will continue under its existing leadership and structure.
Founded in 1981 in Los Angeles, with headquarters now in Lugano and Los Angeles, Guess? operates in approximately 100 countries through a global retail and licensing network, including 1,600 stores globally, of which over 1,000 are directly managed.
Premium Guess Jeans with the Guess Logo.
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Meantime, Authentic Brands has rapidly expanded with a host of licensing deals with well-known brands and increasingly cross brand promotions, leveraging influencer and part owner David Beckham especially, who promotes his eponymous brand but will also wear other brands from within the ABG stable.
Today, it also announced new strategic operating partners for its Forever 21 brand in the U.S. Unique Brands will take the helm of Forever 21’s U.S. e-commerce operations and men’s wholesale, while Mark Edwards Apparel is now the brand’s U.S. women’s wholesale partner.
Kidz Concepts, a leader in children’s apparel design and manufacturing, will serve as Forever 21’s U.S. partner for kidswear.
Authentic Brands Bets On Beckham
Salter cited sportswear brand Reebok, which ABG bought from Adidas in 2022 and has since doubled sales, plus the tie up with former basketball legend Shaquille O’Neal as two of the most successful deals the company has signed.
Stupp added that the company remains “very bullish” on physical retail as it looks to help its brand partners expand their stores internationally.
“The hardest thing to achieve for any brand is scale, which seems the most elusive element fo any retail offer. A win for us is to take a great brand to an omnichannel retailer who can really leverage the business,” Stupp said.
Authentic owns more than 50 global brands, generating approximately $32 billion in annual retail sales across 150 countries, with more than 29,000 freestanding stores and shop-in-shops, as well as 500,000 points of sale worldwide.
Authentic’s portfolio also includes Champion, Nautica, Eddie Bauer, Aéropostale, Nine West, Brooks Brothers, Juicy Couture, Quiksilver, Billabong, Hunter and Ted Baker.
Meanwhile, through Authentic Brands’ joint venture with Saks Global, Authentic Luxury Group includes Barneys New York – which it is looking to expand into luxury residential schemes – Neiman Marcus, Saks Fifth Avenue and Saks OFF 5TH.