Guess? Inc. Announces Joint Venture in Mexico

Guess? Inc., Los Angeles, has entered into a joint venture agreement for Mexico with an affiliate of Grupo Axo. The joint venture, of which Guess? owns the majority, will engage in the manufacture, wholesale distribution and retail sale of Guess? fashion apparel, accessories and other related products in Mexico. The first Guess? retail store under the joint venture opened in May 2006 in Mexico City and the second one opened in Cancun in July 2006. "The formation of our new Mexican joint venture is another step forward in our international expansion," said Paul Marciano, co-chairman and co-CEO of Guess?. "The Guess? brand is already well recognized in Mexico, as we had an apparel license in this region for over twenty years until 2004. We have experienced incredible success with Guess? in Canada, which also started out as a joint venture in 1994 and is now a wholly-owned subsidiary of Guess? and one of our best performing regions. We hope to achieve similar success with our joint venture partners in Mexico." Alberto Fasja Cohen, co-CEO of Grupo Axo, added, "Our growth strategy for Mexico over the next several years includes the opening of several freestanding stores and over 50 shop-in-shops within leading department stores."