Guess’, Inc. (NYSE:GES) Q4 2023 Earnings Call Transcript

And unfortunately, we did have access to the product and we were able to make their business better and, of course, ours as well. Our business in Canada has been very strong and performing very well. So we don’t see any issues there. Our business in Mexico actually is outperforming the rest of our channels. And we are super happy with what’s happening there and Brazil is very small business. So what we think that is going to happen here is, we think that we will continue to build our business. We think that product is going to be king as it always is. So if we have the right product, which we believe we do, our retail partners are going to come back and order more. And that additional business is not considered in our plans, but we think that there is plenty of opportunities to be able to do that and we are going to be strategic in the way we buy it.

So then we can be in position to satisfy those as well as assuming that they do exist. You asked about digital penetration, before COVID we were looking at our total e-commerce business as a percent of our direct to consumer business represent about 13% of our business. And this past year, we closed with 17%. We — there is different momentum between the two regions I’m talking about, North America and Europe. Europe has done a lot better in terms of accelerating this business than North America. And we are seeing growth from the pre-COVID days in a significant way. And we think that there is a lot more to be had. Actually, our North America business is having a pretty good momentum and we think that this has a lot to do with the infrastructure that we have upgraded following what we did in Europe.

So we see that the rhythm is accelerating there as well. With respect to Guess and Mariano, definitely our main brand, core brand is Guess and we have a — the majority of our business is anchored in that brand. But that said, Marciano, we see a lot of opportunity because we think that the product collections that we have within the brands are very unique and in the marketplace. We think that there used to be some other brands that were right there in terms of that offering that type of contemporary lifestyle at reasonable prices. But now those brands are kind of gone. I’m talking about the brands like at the time, just there were some aspects of other brands here in that offer similar type of product. And today, we don’t think that that competition is there.

And Marciano is also doing very well in Europe, which is, again, there aren’t that many companies that offer the kind of product and quality and styling that Marciano offers today. When you think about the dresses that are in the brands, just are incredible and the customer is boating with their purchasing in a very strong way. And so, we see that brand accelerating the growth. But again, it’s relatively small when you compare it to the size of our Guess brand. And I think your last question was about IMU. Maybe Dennis, you can touch on that.