The apparel chain Guess? Inc. (GES - Analyst Report) has joined forces again with the Dutch musician, DJ and producer Tiesto to include in its stores a new range of 35-piece collections of apparel and accessories for men and women. The new range of collections to which the DJ will lend his name will be shelved at the Guess? stores starting May 2013.
The Grammy nominated DJ will also present Guess? branded performance around the world. The collection will have a Tiësto/GUESS logo, in black and electric blue. A limited edition Tiesto multifunctional wrist watch will also be available at all Guess? stores beginning Aug 2013.
Many brands from several categories have used the celebrity power of the internationally renowned star. He has worked with technological giants like Intel Corporation (INTC - Analyst Report) and Hewlett Packard Company (HPQ - Analyst Report), cosmetics brand Axe body spray and even Heineken beer. He has also lent his style to a Guess? Inc. competitor -- Armani Exchange.
The partnership is an extension of a 22-piece line consisting of T-shirts, skinny-fit jeans in black and indigo treatment with zipper detailing, besides leather and coated twill moto-jackets endorsed by the star in Oct 2012. The partnership with Tiesto and Guess will last for a year. The dedicated microsite – tiesto.guess.com provides information to users about Tiesto’s Guess sponsored performances and when the collection will be available in the stores.
Endorsement by a celebrity such as Tiesto is expected to boost Guess? Earnings, which were down 9.5% year over year in the recently concluded fourth quarter fiscal 2013 due to lower consumer demand and currency headwinds. Although revenue increased, promotional spending shrank margins during the quarter
Guess? currently carries a Zacks Rank #2 (Buy). Other stocks like Hanesbrands Inc. (HBI - Analyst Report), Gildan Activewear (GIL - Snapshot Report) and PVH Corp (PVH - Analyst Report) also with a Zacks Rank #2 (Buy), are worth considering.