10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 2, 2014

OR

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to           

Commission file number: 1-11893

GUESS?, INC.

(Exact name of registrant as specified in its charter)

Delaware	95-3679695
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
1444 South Alameda Street
Los Angeles, California	90021
(Address of principal executive offices)	(Zip Code)

(213) 765-3100

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x	Accelerated filer o
Non-accelerated filer o	Smaller reporting company o
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x

As of September 2, 2014 the registrant had 85,214,945 shares of Common Stock, $.01 par value per share, outstanding.

GUESS?, INC.

FORM 10-Q

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	1
	Condensed Consolidated Balance Sheets as of August 2, 2014 and February 1, 2014	1
	Condensed Consolidated Statements of Income — Three and Six Months Ended August 2, 2014 and August 3, 2013	2
	Condensed Consolidated Statements of Comprehensive Income — Three and Six Months Ended August 2, 2014 and August 3, 2013	3
	Condensed Consolidated Statements of Cash Flows — Six Months Ended August 2, 2014 and August 3, 2013	4
	Notes to Condensed Consolidated Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	44
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	44
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 6.	Exhibits	46

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PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements.

GUESS?, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
	Aug 2, 2014			Feb 1, 2014
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	461,519		$	502,945
Short-term investments	5,019			5,123
Accounts receivable, net	233,906			276,565
Inventories	392,387			350,899
Other current assets	109,475			80,554
Total current assets	1,202,306			1,216,086
Property and equipment, net	309,155			324,606
Goodwill	38,639			38,992
Other intangible assets, net	12,336			13,143
Long-term deferred tax assets	56,891			54,973
Other assets	121,092			116,631
	$	1,740,419		$	1,764,431
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of capital lease obligations and borrowings	$	1,997		$	4,160
Accounts payable	194,101			191,532
Accrued expenses	164,068			174,333
Total current liabilities	360,166			370,025
Capital lease obligations and other long-term debt	6,735			7,580
Deferred rent and lease incentives	90,044			90,492
Other long-term liabilities	114,695			120,518
	571,640			588,615
Redeemable noncontrolling interests	5,468			5,830
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $.01 par value. Authorized 10,000,000 shares; no shares issued and outstanding	—			—
Common stock, $.01 par value. Authorized 150,000,000 shares; issued 139,513,762 and 139,245,729 shares, outstanding 85,257,404 and 84,962,345 shares, at August 2, 2014 and February 1, 2014, respectively	853			850
Paid-in capital	447,587			439,742
Retained earnings	1,229,022			1,247,180
Accumulated other comprehensive loss	(10,774		)	(13,801		)
Treasury stock, 54,256,358and 54,283,384 shares at August 2, 2014 and February 1, 2014, respectively	(519,198		)	(519,457		)
Guess?, Inc. stockholders’ equity	1,147,490			1,154,514
Nonredeemable noncontrolling interests	15,821			15,472
Total stockholders’ equity	1,163,311			1,169,986
	$	1,740,419		$	1,764,431

See accompanying notes to condensed consolidated financial statements.

1

GUESS?, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share data) (unaudited)
	Three Months Ended						Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Product sales	$	581,779		$	611,894		$	1,078,707		$	1,130,558
Net royalties	26,792			27,118			52,405			57,368
Net revenue	608,571			639,012			1,131,112			1,187,926
Cost of product sales	391,794			390,480			738,104			741,968
Gross profit	216,777			248,532			393,008			445,958
Selling, general and administrative expenses	186,919			181,623			365,127			365,387
Restructuring charges	—			6,129			—			8,466
Earnings from operations	29,858			60,780			27,881			72,105
Other income (expense):
Interest expense	(772		)	(365		)	(1,297		)	(914		)
Interest income	320			475			725			809
Other income (expense), net	4,766			(139		)	3,647			5,318
	4,314			(29		)	3,075			5,213
Earnings before income tax expense	34,172			60,751			30,956			77,318
Income tax expense	11,900			20,048			10,871			25,515
Net earnings	22,272			40,703			20,085			51,803
Net earnings attributable to noncontrolling interests	318			837			232			2,021
Net earningsattributable to Guess?, Inc.	$	21,954		$	39,866		$	19,853		$	49,782
Net earnings per common share attributable to common stockholders (Note 2):
Basic	$	0.26		$	0.47		$	0.23		$	0.59
Diluted	$	0.26		$	0.47		$	0.23		$	0.58
Weighted average common shares outstanding attributable to common stockholders (Note 2):
Basic	84,573			84,080			84,536			84,331
Diluted	84,799			84,347			84,765			84,563
Dividends declared per common share	$	0.225		$	0.200		$	0.450		$	0.400

See accompanying notes to condensed consolidated financial statements.

2

GUESS?, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands) (unaudited)
	Three Months Ended						Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Net earnings	$	22,272		$	40,703		$	20,085		$	51,803
Other comprehensive income (loss) (“OCI”):
Foreign currency translation adjustment
Gains (losses) arising during the period	(19,708		)	2,390			2,542			(22,024		)
Derivative financial instruments designated as cash flow hedges
Gains (losses) arising during the period	1,867			227			(812		)	4,897
Less income tax effect	(515		)	(163		)	106			(745		)
Reclassification to net earnings for (gains) losses realized	290			(508		)	815			(966		)
Less income tax effect	391			84			370			154
Marketable securities
Losses arising during the period	(40		)	(132		)	(66		)	(33		)
Less income tax effect	15			51			25			11
Reclassification to net earnings for gains realized	—			—			(87		)	—
Less income tax effect	—			—			33			—
Supplemental Executive Retirement Plan (“SERP”)
Plan amendment	—			4,529			—			4,529
Less income tax effect	—			(1,733		)	—			(1,733		)
Actuarial loss amortization	235			277			469			554
Prior service (credit) cost amortization	(58		)	156			(116		)	311
Less income tax effect	(68		)	(165		)	(135		)	(330		)
Total comprehensive income	4,681			45,716			23,229			36,428
Less comprehensive income attributable to noncontrolling interests:
Net earnings	318			837			232			2,021
Foreign currency translation adjustment	(284		)	(561		)	117			(209		)
Amounts attributable to noncontrolling interests	34			276			349			1,812
Comprehensive income attributable to Guess?, Inc.	$	4,647		$	45,440		$	22,880		$	34,616

See accompanying notes to condensed consolidated financial statements.

3

GUESS?, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
	Six Months Ended
	Aug 2, 2014			Aug 3, 2013
Cash flows from operating activities:
Net earnings	$	20,085		$	51,803
Adjustments to reconcile net earnings to net cash provided byoperating activities:
Depreciation and amortization of property and equipment	41,363			43,327
Amortization of intangible assets	1,291			981
Share-based compensation expense	7,613			5,999
Unrealized forward contractgains	(1,047		)	(1,601		)
Net loss on disposition of property and equipment and long-term assets	5,986			7,290
Other items, net	847			(3,215		)
Changes in operating assets and liabilities:
Accounts receivable	42,381			38,950
Inventories	(43,485		)	(33,156		)
Prepaid expenses and other assets	(8,484		)	4,752
Accounts payable and accrued expenses	(30,286		)	(15,890		)
Deferred rent and lease incentives	(442		)	(2,354		)
Other long-term liabilities	(5,459		)	5,281
Net cash provided by operating activities	30,363			102,167
Cash flows from investing activities:
Purchases of property and equipment	(32,316		)	(40,445		)
Changes in other assets	319			7,804
Proceeds from sale and maturity of investments	598			1,826
Acquisition of businesses, net of cash acquired	(309		)	(653		)
Net cash settlement of forward contracts	(842		)	1,468
Net cash used in investing activities	(32,550		)	(30,000		)
Cash flows from financing activities:
Proceeds from borrowings	786			1,294
Repayment of borrowings and capital lease obligations	(3,720		)	(1,002		)
Dividends paid	(38,455		)	(34,100		)
Noncontrolling interest capital contributions	—			521
Issuance of common stock, net of nonvested award repurchases	619			3,259
Excess tax benefits from share-based compensation	148			221
Purchase of treasury stock	—			(22,099		)
Net cash used in financing activities	(40,622		)	(51,906		)
Effect of exchange rates on cash and cash equivalents	1,383			(5,557		)
Net change in cash and cash equivalents	(41,426		)	14,704
Cash and cash equivalents at beginning of period	502,945			329,021
Cash and cash equivalents at end of period	$	461,519		$	343,725
Supplemental cash flow data:
Interest paid	$	870		$	537
Income taxes paid	$	46,208		$	50,986

See accompanying notes to condensed consolidated financial statements.

4

GUESS?, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

August 2, 2014

(unaudited)

(1) Basis of Presentation

In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Guess?, Inc. and its subsidiaries (the “Company”) contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheets as of August 2, 2014 and February 1, 2014, the condensed consolidated statements of income and comprehensive income for the three and six months ended August 2, 2014 and August 3, 2013, and the condensed consolidated statements of cash flows for the six months ended August 2, 2014 and August 3, 2013. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three and six months ended August 2, 2014 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 1, 2014.

The three and six months ended August 2, 2014 had the same number of days as the three and six months ended August 3, 2013. All references herein to “fiscal 2015,” “fiscal 2014” and “fiscal 2013” represent the results of the 52-week fiscal year ending January 31, 2015, the 52-week fiscal year ended February 1, 2014 and the 53-week fiscal year ended February 2, 2013, respectively. 

New Accounting Guidance

In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar loss or a tax credit carryforward, if specific criteria are met. The Company adopted this guidance effective February 2, 2014. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

In April 2014, the FASB issued authoritative guidance which raises the threshold for disposals to qualify as discontinued operations. Under this new guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance is effective for fiscal periods beginning after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective

5

adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements or related disclosures.

(2) EarningsPer Share

Basic earnings per share represents net earningsattributable to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method since the nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, earnings attributable to nonvested restricted stockholders are excluded from net earnings attributable to common stockholders for purposes of calculating basic and diluted earnings per common share. However, net losses are not allocated to nonvested restricted stockholders since they are not contractually obligated to share in the losses of the Company.

The computation of basic and diluted net earningsper common share attributable to common stockholders is as follows (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	Aug 2, 2014		Aug 3, 2013		Aug 2, 2014		Aug 3, 2013
Net earnings attributable to Guess?, Inc.	$	21,954	$	39,866	$	19,853	$	49,782
Less net earnings attributable to nonvested restricted stockholders	167		351		292		410
Net earnings attributable to common stockholders	$	21,787	$	39,515	$	19,561	$	49,372
Weighted average common shares used in basic computations	84,573		84,080		84,536		84,331
Effect of dilutive securities:
Stock options and restricted stock units	226		267		229		232
Weighted average common shares used in diluted computations	84,799		84,347		84,765		84,563
Net earnings per common share attributable to common stockholders:
Basic	$	0.26	$	0.47	$	0.23	$	0.59
Diluted	$	0.26	$	0.47	$	0.23	$	0.58

For the three months ended August 2, 2014 and August 3, 2013, equity awards granted for 1,666,111 and 1,061,684, respectively, of the Company’s common shares and for the six months ended August 2, 2014 and August 3, 2013, equity awards granted for 1,549,291 and 1,412,576, respectively, of the Company’s common shares were outstanding but were excluded from the computation of diluted weighted average common shares and common share equivalents outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being antidilutive. For the three and six months ended August 2, 2014, the Company also excluded 259,700 nonvested stock units which are subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common share equivalents outstanding because the performance condition had not yet been achieved as of August 2, 2014. For the three and six months ended August 3, 2013, the Company excluded 243,700 nonvested stock units which were subject to the achievement of performance-based vesting conditions from the computation of diluted

6

weighted average common shares and common share equivalents outstanding because the performance condition had not yet been achieved as of August 3, 2013.

On March 14, 2011, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $250 millionof the Company’s common stock (the “2011 Share Repurchase Program”). On June 26, 2012, the Company’s Board of Directors authorized a new program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 millionof the Company’s common stock (the “2012 Share Repurchase Program”). The 2012 Share Repurchase Program was in addition to the 2011 Share Repurchase Program. Repurchases under programs may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under programs and programs may be discontinued at any time, without prior notice. There were noshare repurchases under the 2012 Share Repurchase Program during the three and six months ended August 2, 2014. During the six months ended August 3, 2013, theCompany repurchased 882,551 shares under the 2011 and 2012 Share Repurchase Programs at an aggregate cost of $22.1 million. All such share repurchases were made during the three months ended May 4, 2013. As of August 2, 2014, the Company had remaining authority under the 2012 Share Repurchase Program to purchase $495.8 million of its common stock and no remaining authority to purchase shares under the 2011 Share Repurchase Program.

7

(3) Stockholders’ Equity and Redeemable Noncontrolling Interests

A reconciliation of the total carrying amount of total stockholders’ equity, Guess?, Inc. stockholders’ equity and stockholders’ equity attributable to nonredeemable and redeemable noncontrolling interests for the fiscal year ended February 1, 2014 and six months ended August 2, 2014 is as follows (in thousands):

	Stockholders’ Equity
	Guess?, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total			Redeemable Noncontrolling Interests
Balance at February 2, 2013	$	1,086,992		$	13,876		$	1,100,868		$	3,144
Net earnings	153,434			4,277			157,711			—
Foreign currency translation adjustment	(17,621		)	(804		)	(18,425		)	(104		)
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($237)	1,669			—			1,669			—
Loss on marketable securities, net of income tax of $4	(7		)	—			(7		)	—
SERP plan amendment, prior service cost amortization and actuarial valuation gain (loss) and related amortization, net of income tax of ($2,963)	4,619			—			4,619			—
Issuance of common stock under stock compensation plans, net of tax effect	2,404			—			2,404			—
Issuance of stock under Employee Stock Purchase Plan	980			—			980			—
Share-based compensation	13,949			—			13,949			—
Dividends	(68,215		)	—			(68,215		)	—
Share repurchases	(22,099		)	—			(22,099		)	—
Noncontrolling interest capital contribution	—			—			—			1,199
Noncontrolling interest capital distribution	—			(1,877		)	(1,877		)	—
Redeemable noncontrolling interest redemption value adjustment	(1,591		)	—			(1,591		)	1,591
Balance at February 1, 2014	$	1,154,514		$	15,472		$	1,169,986		$	5,830
Netearnings	19,853			232			20,085			—
Foreign currency translation adjustment	2,425			117			2,542			65
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of $476	479			—			479			—
Loss on marketable securities, net of income tax of $58	(95		)	—			(95		)	—
SERP prior service credit and actuarial valuation amortization, net of income tax of ($135)	218			—			218			—
Issuance of common stock under stock compensation plans, net of tax effect	(93		)	—			(93		)	—
Issuance of stock under Employee Stock Purchase Plan	635			—			635			—
Share-based compensation	7,613			—			7,613			—
Dividends	(38,486		)	—			(38,486		)	—
Redeemable noncontrolling interest redemption value adjustment	427			—			427			(427		)
Balance at August 2, 2014	$	1,147,490		$	15,821		$	1,163,311		$	5,468

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Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands):

	Three Months Ended Aug 2, 2014
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at May 3, 2014	$	14,846		$	(1,667	)	$	33		$	(6,679	)	$	6,533
Gains (losses) arising during the period	(19,424		)	1,352			(25		)	—			(18,097		)
Reclassification to net earnings for losses realized	—			681			—			109			790
Net other comprehensive income (loss)	(19,424		)	2,033			(25		)	109			(17,307		)
Balance at August 2, 2014	$	(4,578	)	$	366		$	8		$	(6,570	)	$	(10,774	)

	Six Months Ended Aug 2, 2014
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at February 1, 2014	$	(7,003	)	$	(113	)	$	103		$	(6,788	)	$	(13,801	)
Gains (losses) arising during the period	2,425			(706		)	(41		)	—			1,678
Reclassification to net earnings for (gains) losses realized	—			1,185			(54		)	218			1,349
Net other comprehensive income (loss)	2,425			479			(95		)	218			3,027
Balance at August 2, 2014	$	(4,578	)	$	366		$	8		$	(6,570	)	$	(10,774	)

	Three Months Ended Aug 3, 2013
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at May 4, 2013	$	(14,148	)	$	1,918		$	169		$	(11,140	)	$	(23,201	)
Gains (losses) arising during the period	2,951			64			(81		)	2,796			5,730
Reclassification to net earnings for (gains) losses realized	—			(424		)	—			268			(156		)
Net other comprehensive income (loss)	2,951			(360		)	(81		)	3,064			5,574
Balance at August 3, 2013	$	(11,197	)	$	1,558		$	88		$	(8,076	)	$	(17,627	)

	Six Months Ended Aug 3, 2013
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at February 2, 2013	$	10,618		$	(1,782	)	$	110		$	(11,407	)	$	(2,461	)
Gains (losses) arising during the period	(21,815		)	4,152			(22		)	2,796			(14,889		)
Reclassification to net earnings for (gains) losses realized	—			(812		)	—			535			(277		)
Net other comprehensive income (loss)	(21,815		)	3,340			(22		)	3,331			(15,166		)
Balance at August 3, 2013	$	(11,197	)	$	1,558		$	88		$	(8,076	)	$	(17,627	)

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Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands):

	Three Months Ended						Six Months Ended						Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Derivative financial instruments designated as cash flow hedges:
Foreign exchange currency contracts	$	265		$	(393	)	$	759		$	(872	)	Cost of sales
Foreign exchange currency contracts	25			(115		)	56			(94		)	Other income/expense
Less income tax effect	391			84			370			154			Income tax expense
	681			(424		)	1,185			(812		)
Marketable securities:
Available-for-sale securities	—			—			(87		)	—			Other income/expense
Less income tax effect	—			—			33			—			Income tax expense
	—			—			(54		)	—
SERP:
Actuarial loss amortization	235			277			469			554			(1)
Prior service (credit) cost amortization	(58		)	156			(116		)	311			(1)
Less income tax effect	(68		)	(165		)	(135		)	(330		)	Income tax expense
	109			268			218			535
Total reclassifications during the period	$	790		$	(156	)	$	1,349		$	(277	)

__________________________________

(1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 13 for further information.

Redeemable Noncontrolling Interests

The Company is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest from the acquisition of its majority-owned subsidiary, Guess Sud SAS (“Guess Sud”). The put arrangement for Guess Sud, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holders by providing written notice to the Company any time after January 30, 2012. The put arrangement is recorded on the balance sheet at its expected redemption value based on a method which approximates fair value and classified as a redeemable noncontrolling interest outside of permanent equity. The redemption value of the Guess Sud redeemable put arrangement was $4.3 million and $4.7 million at August 2, 2014 and February 1, 2014, respectively.

During fiscal 2014, the Company entered into a majority-owned joint venture to establish Guess Brasil Comércio e Distribuição S.A. (“Guess Brazil”). The Company funded $1.8 million to obtain a 60% interest in Guess Brazil and is subject to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest. The put arrangement may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company beginning in fiscal 2020, or sooner in certain limited circumstances, and every third anniversary thereafter subject to certain time restrictions. The redemption value of the Guess Brazil put arrangement is based on a multiple of Guess Brazil’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments. The redemption value of the Guess Brazil redeemable put arrangement was $1.2 million and $1.1 million at August 2, 2014 and February 1, 2014, respectively.

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(4) Accounts Receivable

Accounts receivable is summarized as follows (in thousands):

	Aug 2, 2014		Feb 1, 2014
Trade	$	258,446	$	291,411
Royalty	8,629		16,372
Other	5,172		8,174
	272,247		315,957
Less allowance for doubtful accounts	38,341		39,392
	$	233,906	$	276,565

Accounts receivable consists of trade receivables relating primarily to the Company’s wholesale business in Europe, and to a lesser extent, to its wholesale businesses in North America and Asia, and royalty receivables relating to its licensing operations. The accounts receivable allowance includes allowances for doubtful accounts, wholesale sales returns and wholesale markdowns. Retail sales returns allowances are included in accrued expenses.

(5) Inventories

Inventories consist of the following (in thousands):

	Aug 2, 2014		Feb 1, 2014
Raw materials	$	14,778	$	10,585
Work in progress	175		977
Finished goods	377,434		339,337
	$	392,387	$	350,899

As of August 2, 2014 and February 1, 2014, the Company had an allowance to write-down inventories to the lower of cost or market of $21.8 million and $23.4 million, respectively.

(6) Restructuring Charges

During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. There were no restructuring charges incurred during the three and six months ended August 2, 2014 as the actions under these plans were substantially completed during fiscal 2014. The Company does not expect significant future cash-related severance and lease termination charges related to these plans to be incurred during the remainder of fiscal 2015. During the three and six months ended August 3, 2013, the Company incurred restructuring charges of $6.1 million and $8.5 million, respectively, related primarily to severance, impairment and lease termination costs. As of August 2, 2014, the Company had a balance of approximately $1.8 million in accrued expenses for amounts expected to be paid during the remainder of fiscal 2015. At February 1, 2014, the Company had a balance of approximately $4.6 million in accrued expenses related to these restructuring activities.

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The following table summarizes the components of the restructuring activities during the fiscal year ended February 1, 2014 and six months ended August 2, 2014 (in thousands):

	Severance			Impairment and Lease Termination			Total
Balance at February 2, 2013	$	—		$	—		$	—
Charges to operations	9,206			3,236			12,442
Non-cash write-offs	—			(1,717		)	(1,717		)
Cash payments	(4,567		)	(1,492		)	(6,059		)
Foreign currency and other adjustments	(61		)	(27		)	(88		)
Balance at February 1, 2014	$	4,578		$	—		$	4,578
Cash payments	(1,892		)	—			(1,892		)
Foreign currency and other adjustments	(846		)	—			(846		)
Balance at August 2, 2014	$	1,840		$	—		$	1,840

(7) Income Taxes

Income tax expense for the interim periods was computed using the effective tax rate estimated to be applicable for the full fiscal year. The Company’s effective income tax rate increased to 35.1% for the six months ended August 2, 2014 from 33.0% for the six months ended August 3, 2013.

The Company accrues an amount for its estimate of additional income tax liability which the Company, more likely than not, could incur as a result of the ultimate resolution of income tax audits (“uncertain tax positions”). The Company reviews and updates the estimates used in the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, upon completion of tax audits, upon expiration of statutes of limitation, or upon occurrence of other events.

The Company had aggregate accruals for uncertain tax positions, including penalties and interest, of $12.0 million and $11.4 million as of August 2, 2014 and February 1, 2014, respectively. The change in the accrual balance from February 1, 2014 to August 2, 2014 resulted from the completion of tax audits during the six months ended August 2, 2014.

(8) Segment Information

The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: North American Retail, Europe, Asia, North American Wholesale and Licensing. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before restructuring charges, if any. The Company believes this segment reporting reflects how its five business segments are managed and each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The North American Retail segment includes the Company’s retail and e-commerce operations in North America and its retail operations in Central and South America. The Europe segment includes the Company’s wholesale, retail and e-commerce operations in Europe and the Middle East. The Asia segment includes the Company’s wholesale, retail and e-commerce operations in Asia. The North American Wholesale segment includes the Company’s wholesale operations in North America and Central and South America. The Licensing segment includes the worldwide licensing operations of the Company. The business segment operating results exclude corporate overhead costs, which consist of shared costs of the organization, and restructuring charges. These costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, facilities, global advertising and marketing, human resources, information technology and legal.

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Net revenue and earnings (loss) from operations are summarized as follows for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands):

	Three Months Ended						Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Net revenue:
North American Retail	$	244,000		$	254,313		$	472,344		$	492,624
Europe	235,260			250,372			394,418			415,764
Asia	64,267			65,852			134,385			136,984
North American Wholesale	38,252			41,357			77,560			85,186
Licensing	26,792			27,118			52,405			57,368
Total net revenue	$	608,571		$	639,012		$	1,131,112		$	1,187,926
Earnings (loss)from operations:
North American Retail	$	(4,662	)	$	10,390		$	(13,061	)	$	6,157
Europe	24,513			39,275			17,881			34,057
Asia	2,264			5,039			5,617			12,003
North American Wholesale	5,167			8,478			12,920			17,127
Licensing	24,909			25,101			47,630			51,305
Corporate Overhead	(22,333		)	(21,374		)	(43,106		)	(40,078		)
Restructuring Charges	—			(6,129		)	—			(8,466		)
Total earnings from operations	$	29,858		$	60,780		$	27,881		$	72,105

Due to the seasonal nature of the Company’s business segments, the above net revenue and operating results are not necessarily indicative of the results that may be expected for the full fiscal year. Restructuring charges incurred during the three and six months ended August 3, 2013 related to plans to streamline and consolidate the Company’s operations and reduce expenses in North America, Europe and Asia. Refer to Note 6 for more information regarding these restructuring charges.

(9) Borrowings and Capital Lease Obligations

Borrowings and capital lease obligations are summarized as follows (in thousands):

	Aug 2, 2014		Feb 1, 2014
European capital lease, maturing quarterly through 2016	$	7,294	$	8,637
Other	1,438		3,103
	8,732		11,740
Less current installments	1,997		4,160
Long-term capital lease obligations and other debt	$	6,735	$	7,580

Capital Lease

The Company entered into a capital lease in December 2005 for a building in Florence, Italy. As of August 2, 2014, the capital lease obligation was $7.3 million. The Company entered into a separate interest rate swap agreement designated as a non-hedging instrument that resulted in a swap fixed rate of 3.55%. This interest rate swap agreement matures in 2016 and converts the nature of the capital lease obligation from Euribor floating-rate debt to fixed-rate debt. The fair value of the interest rate swap liability as of August 2, 2014 was approximately $0.4 million.

Credit Facilities

On July 6, 2011, the Company entered into a five-year senior secured revolving credit facility with JPMorgan Chase Bank, N.A., Bank of America, N.A. and the other lenders party thereto (the “Credit Facility”) which provided for a $200 millionrevolving multicurrency line of credit. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits. It may be used for working capital and other general corporate purposes.

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On August 31, 2012, the Company increased its borrowing capacity under the Credit Facility from $200 million to $300 million by exercising the accordion feature in the Credit Facility pursuant to a Lender Joinder Agreement with the lenders party thereto. Also on August 31, 2012, the Company entered into an Amendment to the Credit Facility with the lenders party thereto to provide for (i) greater flexibility in certain of the Company’s covenants under the Credit Facility and (ii) access to a new $100 million accordion feature, subject to certain conditions and the willingness of existing or new lenders to assume such increased amount. As of August 2, 2014, the Company had $1.7 million in outstanding standby letters of credit, no outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility.

The Company, through its European subsidiaries, maintains short-term uncommitted borrowing agreements, primarily for working capital purposes, with various banks in Europe. The majority of the borrowings under these agreements are secured by specific accounts receivable balances. Based on the applicable accounts receivable balances as of August 2, 2014, the Company could have borrowed up to $112.8 million under these agreements. As of August 2, 2014, the Company had no outstanding borrowings and $1.6 million in outstanding documentary letters of credit under these agreements. The agreements are denominated primarily in euros and provide for annual interest rates ranging from 0.5% to 3.0%. The maturities of any short-term borrowings under these arrangements are generally linked to the credit terms of the underlying accounts receivable that secure the borrowings. With the exception of one facility for up to $47.0 million that has a minimum net equity requirement, there are no other financial ratio covenants.

Other

From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations.

(10) Share-Based Compensation

The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): 

	Three Months Ended				Six Months Ended
	Aug 2, 2014		Aug 3, 2013		Aug 2, 2014		Aug 3, 2013
Stock options	$	620	$	684	$	1,076	$	1,257
Nonvested stock awards/units	3,439		2,994		6,377		4,599
Employee Stock Purchase Plan	97		73		160		143
Total share-based compensation expense	$	4,156	$	3,751	$	7,613	$	5,999

Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options and nonvested stock awards/units totaled approximately $4.5 million and $23.9 million, respectively, as of August 2, 2014. This cost is expected to be recognized over a weighted average period of 1.7 years. The weighted average fair values of stock options granted during the six months ended August 2, 2014 and August 3, 2013 were $6.23 and $6.05, respectively. 

Grants

On April 2, 2014, the Company made an annual grant of 365,600 stock options and 301,200 nonvested stock awards/units to its employees. On April 3, 2013, the Company made an annual grant of 416,500 stock options and 408,400 nonvested stock awards/units to its employees.

Performance Awards

On July 11, 2013, the Company granted 100,000 nonvested stock units to Paul Marciano, the Company’s Chief Executive Officer and Vice Chairman of the Board, in connection with an employment agreement entered into between the Company and Mr. Marciano. The nonvested stock units had an initial vesting period of seven months followed by two annual vesting periods, which were subject to the achievement of performance-based vesting conditions for the last three quarters of fiscal 2014 and continued service vesting conditions through the vesting periods. The Company also granted a target of 143,700 nonvested stock units to Mr. Marciano, of which

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approximately 84% are expected to vest based on the achievement of performance-based conditions for the last three quarters of fiscal 2014 subject to continued service vesting conditions through the vesting date. Such shares are scheduled to vest on February 1, 2016.

On April 8, 2014, the Company granted 100,000 nonvested stock units to Mr. Marciano which have an initial vesting period of ten months followed by two annual vesting periods, subject to the achievement of performance-based vesting conditions for fiscal 2015 and continued service vesting conditions through the vesting periods. The Company also granted a target of 159,700 nonvested stock units to Mr. Marciano on April 8, 2014. The number of shares that will ultimately vest will equal 0% to 150% of the target number of shares, subject to the achievement of performance-based vesting conditions for fiscal 2015 and continued service vesting conditions through the vesting date. Such shares are scheduled to vest on January 31, 2017.

(11) Related Party Transactions

The Company and its subsidiaries periodically enter into transactions with other entities or individuals that are considered related parties, including certain transactions with entities affiliated with trusts for the respective benefit of Paul Marciano, who is an executive of the Company, Maurice Marciano, Chairman of the Board, Armand Marciano, their brother and former executive of the Company, and certain of their children (the “Marciano Trusts”).

Leases

The Company leases warehouse and administrative facilities, including the Company’s corporate headquarters in Los Angeles, California, from partnerships affiliated with the Marciano Trusts and certain of their affiliates. There were four of these leases in effect at August 2, 2014 with expiration dates ranging from 2015 to 2020.

Aggregate rent and property tax expense under these related party leases was $2.9 million for each of the six months ended August 2, 2014 and August 3, 2013. The Company believes the related party lease terms have not been significantly affected by the fact that the Company and the lessors are related.

Aircraft Arrangements

The Company periodically charters aircraft owned by MPM Financial, LLC (“MPM Financial”), an entity affiliated with the Marciano Trusts, through MPM Financial and independent third party management companies contracted by MPM Financial to manage its aircraft. Under an informal arrangement with MPM Financial and the third party management companies, the Company has chartered, and may from time-to-time continue to charter, aircraft owned by MPM Financial at a discount from the third party management companies’ preferred customer hourly charter rates. The total fees paid under these arrangements for the six months ended August 2, 2014 were approximately $0.9 million. During the six months ended August 3, 2013, the total fees paid under these arrangements were minimal.

Consulting Arrangement

After serving for over 30 years as an executive and leader for Guess?, Inc., co-founder Maurice Marciano elected to retire from his position as executive Chairman of the Board and as an employee of the Company upon the expiration of his employment agreement on January 28, 2012. Mr. Marciano continues to serve the Company as its non-executive Chairman of the Board. In addition, under the terms of his previously existing employment agreement, the Company and Mr. Marciano entered into a two-year consulting agreement (the “Marciano Consulting Agreement”) under which Mr. Marciano provided certain consulting services to the Company, including advice and counsel to the Company’s Chief Executive Officer and other senior executives. The Marciano Consulting Agreement, which had a two-year term that commenced on January 28, 2012, provided for consulting fees of $500,000 per year and continued automobile use in a manner consistent with past practice. In January 2014, the Company extended the Marciano Consulting Agreement for an additional one-year period. Total expenses incurred with respect to the Marciano Consulting Agreement were approximately $0.3 million for each of the six months ended August 2, 2014 and August 3, 2013.

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Other Transactions

From time-to-time, the Company utilizes a third-party agent named Harmony Collection, LLC to produce specific apparel products on behalf of the Company. Armand Marciano, brother of Maurice and Paul Marciano, is part owner and an executive of the parent company of Harmony Collection, LLC. The total payments made by the Company under this arrangement for the six months ended August 2, 2014 and August 3, 2013 were approximately $0.7 million and $0.8 million, respectively. The Company believes that the price and transaction terms have not been significantly affected by the relationship between the parties.

These related party disclosures should be read in conjunction with the disclosure concerning related party transactions in the Company’s Annual Report on Form 10-K for the year ended February 1, 2014.

(12) Commitments and Contingencies

Leases

The Company leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through September 2031. Some of these leases require the Company to make periodic payments for property taxes, utilities and common area operating expenses. Certain retail store leases provide for rents based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 2% to 12%, when specific sales volumes are exceeded. Some leases include lease incentives, rent abatements and fixed rent escalations, which are amortized and recorded over the initial lease term on a straight-line basis. The Company also leases some of its equipment under operating lease agreements expiring at various dates through December 2018. As discussed in further detail in Note 9, the Company leases a building in Florence, Italy under a capital lease.

In March 2014, the Company amended its lease with respect to its primary U.S. distribution center based in Louisville, Kentucky to extend the term for an additional ten years, to 2024. The amendment also provides for two extension options for an additional period of five years each.

Litigation

On May 6, 2009, Gucci America, Inc. filed a complaint in the U.S. District Court for the Southern District of New York against Guess?, Inc. and certain third-party licensees for the Company asserting, among other things, trademark and trade dress law violations and unfair competition. The complaint sought injunctive relief, compensatory damages, including treble damages, and certain other relief. Complaints similar to those in the above action have also been filed by Gucci entities against the Company and certain of its subsidiaries in the Court of Milan, Italy, the Court of Paris, France and the Intermediate People’s Court of Nanjing, China. The three week bench trial in the U.S. matter concluded on April 19, 2012, with the court issuing a preliminary ruling on May 21, 2012 and a final ruling on July 19, 2012. Although the plaintiff was seeking compensation in the U.S. matter in the form of damages of $26 million and an accounting of profits of $99 million, the final ruling provided for monetary damages of $2.3 million against the Company and $2.3 million against certain of its licensees. The court also granted narrow injunctions in favor of the plaintiff for certain of the claimed infringements. On August 20, 2012, the appeal period expired without any party having filed an appeal, rendering the judgment final.On May 2, 2013, the Court of Milan ruled in favor of the Company in the Milan, Italy matter. In the ruling, the Court rejected all of the plaintiff’s claims and ordered the cancellation of three of the plaintiff’s Italian and four of the plaintiff’s European Community trademark registrations. On June 10, 2013, the plaintiff appealed the Court’s ruling in the Milan matter. In the China matter, the Intermediate People’s Court of Nanjing, China issued a ruling on November 8, 2013 granting an injunction in favor of the plaintiff for certain of the claimed infringements on handbags and small leather goods and awarding the plaintiff statutory damages in the amount of approximately$80,000. The Company strongly disagrees with the Court’s decision and has appealed the ruling. The judgment in the China matter is stayed pending the appeal, which was heard in May 2014. The France matter in the Court of Paris is currently scheduled to be heard in September 2014.

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On August 25, 2006, Franchez Isaguirre, a former employee of the Company, filed a complaint in the Superior Court of California, County of Los Angeles alleging violations by the Company of California wage and hour laws. The complaint was subsequently amended, adding a second former employee as an additional named party. The plaintiffs purport to represent a class of similarly situated employees in California who allegedly had been injured by not being provided adequate meal and rest breaks. The complaint seeks unspecified compensatory damages, statutory penalties, attorney’s fees and injunctive and declaratory relief. On June 9, 2009, the Court certified the class but immediately stayed the case pending the resolution of a separate California Supreme Court case on the standards of class treatment for meal and rest break claims. Following the Supreme Court ruling, the Superior Court denied the Company’s motions to decertify the class and to narrow the class in January 2013 and June 2013, respectively. The Company subsequently petitioned to have the Court’s decision not to narrow the class definition reviewed. That petition was ultimately denied by the California Supreme Court in April 2014. No trial date has been set.

Although the Company believes that it has a strong position and will continue to vigorously defend each of these remaining matters, it is unable to predict with certainty whether or not these efforts will ultimately be successful or whether the outcomes will have a material impact on the Company’s financial position or results of operations.

The Company is also involved in various other claims and other matters incidental to the Company’s business, the resolution of which is not expected to have a material adverse effect on the Company’s financial position or results of operations. No material amounts were accrued as of August 2, 2014 or February 1, 2014 related to any of the Company’s legal proceedings.

(13) Supplemental Executive Retirement Plan

The components of net periodic pension cost for the three and six months ended August 2, 2014 and August 3, 2013 were as follows (in thousands):

	Three Months Ended					Six Months Ended
	Aug 2, 2014			Aug 3, 2013		Aug 2, 2014			Aug 3, 2013
Interest cost	$	572		$	586	$	1,144		$	1,172
Net amortization of unrecognized prior service (credit) cost	(58		)	156		(116		)	311
Net amortization of actuarial losses	235			277		469			554
Net periodic defined benefit pension cost	$	749		$	1,019	$	1,497		$	2,037

In July 2013, the Company amended the SERP to limit the amount of eligible wages under the plan that count toward the SERP benefit for the active participant. As a result, the projected benefit obligation and unrecognized prior service cost were reduced by $4.5 million during fiscal 2014.

As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made, and may continue to make, periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies may vary, depending on any changes to the estimates of final annual compensation levels and investment performance of the trust. The cash surrender values of the insurance policies were $53.6 million and $51.4 million as of August 2, 2014 and February 1, 2014, respectively, and were included in other assets in the Company’s condensed consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains of $0.7 million and $2.2 million in other income during the three and six months ended August 2, 2014, respectively, and unrealized gains of $1.1 million and $2.6 million in other income during the three and six months ended August 3, 2013, respectively.The projected benefit obligation was $55.6 million and $54.7 million as of August 2, 2014 and February 1, 2014, respectively, and was included in accrued expenses and other long-term liabilities in the Company’s condensed consolidated balance sheets depending on the expected timing of payments.SERP benefit payments of $0.3 million were made during the three and six months ended August 2, 2014.

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(14) Fair Value Measurements

Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs would be based on the best information available, including the Company’s own data.

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of August 2, 2014 and February 1, 2014 (in thousands):

	Fair Value Measurements at Aug 2, 2014								Fair Value Measurements at Feb 1, 2014
Recurring Fair Value Measures	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange currency contracts	$	—	$	3,248	$	—	$	3,248	$	—	$	2,116	$	—	$	2,116
Available-for-sale securities	5,066		—		—		5,066		5,732		—		—		5,732
Total	$	5,066	$	3,248	$	—	$	8,314	$	5,732	$	2,116	$	—	$	7,848
Liabilities:
Foreign exchange currency contracts	$	—	$	342	$	—	$	342	$	—	$	1,712	$	—	$	1,712
Interest rate swap	—		440		—		440		—		581		—		581
Deferred compensation obligations	—		8,305		—		8,305		—		7,498		—		7,498
Total	$	—	$	9,087	$	—	$	9,087	$	—	$	9,791	$	—	$	9,791

There were no transfers of financial instruments between the three levels of fair value hierarchy during the six months ended August 2, 2014 or during the year ended February 1, 2014.

The fair values of the Company’s available-for-sale securities are based on quoted prices. The fair value of the interest rate swaps are based upon inputs corroborated by observable market data. Foreign exchange forward contracts are entered into by the Company principally to hedge the future payment of inventory and intercompany transactions by non-U.S. subsidiaries. Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. The fair values of the Company’s foreign exchange forward contracts are based on quoted foreign exchange forward rates at the reporting date. Deferred compensation obligations to employees are adjusted based on changes in the fair value of the underlying employee-directed investments. Fair value of these obligations is based upon inputs corroborated by observable market data.

Available-for-sale securities are recorded at fair value and are included in short-term investments and other assets in the accompanying condensed consolidated balance sheets depending on their respective maturity dates. At August 2, 2014, available-for-sale securities consisted of $5.0 million of corporate bonds which mature in September 2014 and $0.1 million of marketable equity securities. During the six months ended August 2, 2014, the Company received proceeds of $0.6 million from the sale of marketable equity securities which were classified as available-for-sale securities. The sale of marketable equity securities was made during the three months ended May 4, 2013. The cost of securities sold was based on the specific identification method. Gains recognized during the six months ended August 2, 2014 were $0.1 million as a result of this sale and were included in other income and expense. Unrealized gains (losses), net of taxes, are included as a component of stockholders’ equity and comprehensive income (loss). The accumulated unrealized gains, net of taxes, included in accumulated other

18

comprehensive income (loss) related to available-for-sale securities owned by the Company at August 2, 2014 were minimal.

At February 1, 2014, available-for-sale securities consisted of $5.1 million of corporate bonds and $0.6 million of marketable equity securities. The accumulated unrealized gains, net of taxes, included in accumulated other comprehensive income (loss) related to available-for-sale securities owned by the Company at February 1, 2014 were $0.1 million.

The carrying amount of the Company’s remaining financial instruments, which principally include cash and cash equivalents, trade receivables, accounts payable and accrued expenses, approximates fair value due to the relatively short maturity of such instruments. The fair values of the Company’s debt instruments (see Note 9) are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. At August 2, 2014 and February 1, 2014, the carrying value of all financial instruments was not materially different from fair value, as the interest rates on variable-rate debt including the capital lease obligation approximated rates currently available to the Company. 

Long-Lived Assets

Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company considers each individual store as an asset group for impairment testing, which is the lowest level at which individual cash flows can be identified. The asset group includes store leasehold improvements, furniture, fixtures and equipment, computer hardware and software and certain long-term security deposits and lease acquisition costs. The Company reviews retail stores for impairment risk once the locations have been opened for at least one year, or sooner as changes in circumstances require. The Company believes that waiting one year allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed.

An asset is considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment of the asset’s ability to continue to generate earnings from operations and positive cash flow in future periods or if significant changes in the Company’s strategic business objectives and utilization of the assets occurred. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated fair value, which is determined based on discounted future cash flows. The impairment loss calculations require management to apply judgment in estimating future cash flows and the discount rates that reflect the risk inherent in future cash flows. Future expected cash flows for store assets are based on management’s estimates of future cash flows over the remaining lease period or expected life, if shorter. The Company considers historical trends, expected future business trends and other factors when estimating each store’s future cash flow. The Company also considers factors such as: the local environment for each store location, including mall traffic and competition; the Company’s ability to successfully implement strategic initiatives; and the ability to control variable costs such as cost of sales and payroll and, in some cases, renegotiate lease costs. The estimated cash flows used for this nonrecurring fair value measurement are considered a Level 3 input as defined above. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations.

The Company recorded impairment charges of $4.6 million and $4.8 million during the three and six months ended August 2, 2014, respectively, and $2.1 million and $3.1 million during the three and six months ended August 3, 2013, respectively, related primarily to the full impairment of certain under-performing retail stores in North America and Europe. These impairment charges, which exclude impairment charges incurred during the three and six months ended August 3, 2013 related to restructuring activities, were included in selling, general and administrative expenses in the Company’s condensed consolidated statements of incomefor each of the respective periods. Refer to Note 6 for more information regarding impairment charges related to restructuring activities.

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(15) Derivative Financial Instruments

Hedging Strategy

The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company has entered into certain forward contracts to hedge the risk of foreign currency rate fluctuations. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these hedges.

The Company’s primary objective is to hedge the variability in forecasted cash flows due to the foreign currency risk. Various transactions that occur primarily in Europe, Canada and South Korea are denominated in U.S. dollars and British pounds and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar denominated purchases of merchandise and U.S. dollar and British pound denominated intercompany liabilities. In addition, certain operating expenses and tax liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency.The Company enters into derivative financial instruments, including forward exchange contracts, to offset some but not all of the exchange riskon certain of these anticipated foreign currency transactions.

Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries.

The impact of the credit risk of the counterparties to the derivative contracts is considered in determining the fair value of the foreign currency forward contracts. As of August 2, 2014, credit risk has not had a significant effect on the fair value of the Company’s foreign currency contracts.

The Company also has interest rate swap agreements, which are not designated as hedges for accounting purposes, to effectively convert its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s variable-rate capital lease obligation, thus reducing the impact of interest rate changes on future interest payment cash flows. Refer to Note 9 for further information. 

Hedge Accounting Policy

U.S. dollar forward contracts are used to hedge forecasted merchandise purchases over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period which approximates the time the hedged merchandise inventory is sold. The Company also hedges forecasted intercompany royalties over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income and expense in the period in which the royalty expense is incurred.

U.S. dollar forward contracts are also used to hedge the net investments of certain of the Company’s international subsidiaries over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as net investment hedges, are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are not recognized in earnings until the sale or liquidation of the hedged net investment.

The Company also has foreign currency contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of foreign currency contracts not designated as hedging instruments are reported in net earnings as part of other income and expense.

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Summary of Derivative Instruments

The fair value of derivative instruments in the condensed consolidated balance sheets as of August 2, 2014 and February 1, 2014 was as follows (in thousands):

	Derivative Balance Sheet Location	Fair Value at Aug 2, 2014		Fair Value at Feb 1, 2014
ASSETS:
Derivatives designated as hedging instruments:
Foreign exchange currency contracts:
Cash flow hedges	Other current assets	$	1,430	$	977
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other current assets	1,818		1,139
Total		$	3,248	$	2,116
LIABILITIES:
Derivatives designated as hedging instruments:
Foreign exchange currency contracts:
Cash flow hedges	Accrued expenses	$	237	$	672
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Accrued expenses	105		1,040
Interest rate swaps	Other long-term liabilities	440		581
Total derivatives not designated as hedging instruments		545		1,621
Total		$	782	$	2,293

Derivatives Designated as Hedging Instruments

Cash Flow Hedges

During the six months ended August 2, 2014, the Company purchased U.S. dollar forward contracts in Canada and Europe totaling US$40.4 million and US$38.2 million, respectively, to hedge forecasted merchandise purchases and intercompany royalties that were designated as cash flow hedges.As ofAugust 2, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$66.9 million and US$28.9 million, respectively, which are expected to mature over the next 13 months.

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The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): 

	Gain (Loss) Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings(1)	Gain (Loss) Reclassified from Accumulated OCI into Earnings
	Three Months Ended Aug 2, 2014		Three Months Ended Aug 3, 2013				Three Months Ended Aug 2, 2014			Three Months Ended Aug 3, 2013
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	1,866	$	247		Cost of sales	$	(265	)	$	393
Foreign exchange currency contracts	$	1	$	(20	)	Other income/expense	$	(25	)	$	115

	Gain (Loss) Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings(1)	Gain (Loss) Reclassified from Accumulated OCI into Earnings
	Six Months Ended Aug 2, 2014			Six Months Ended Aug 3, 2013			Six Months Ended Aug 2, 2014			Six Months Ended Aug 3, 2013
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	(706	)	$	4,479	Cost of sales	$	(759	)	$	872
Foreign exchange currency contracts	$	(106	)	$	418	Other income/expense	$	(56	)	$	94

 __________________________________

(1) The ineffective portion was immaterial during the three and six months ended August 2, 2014 and August 3, 2013 and was recorded in net earnings and included in interest income/expense.

As of August 2, 2014, accumulated other comprehensive income (loss) included a net unrealized gainof approximately $0.4 million, net of tax, of which $0.3 million will be recognized in cost of product sales or other income over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values.

The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands):

	Three Months Ended						Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Beginning balance gain (loss)	$	(1,667	)	$	1,918		$	(113	)	$	(1,782	)
Net gains (losses) from changes in cash flow hedges	1,352			64			(706		)	4,152
Net (gains) losses reclassified to earnings	681			(424		)	1,185			(812		)
Ending balance gain	$	366		$	1,558		$	366		$	1,558

At February 1, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$87.1 millionand US$15.2 million, respectively, that were designated as cash flow hedges.

Derivatives Not Designated as Hedging Instruments

As of August 2, 2014, the Company had euro foreign currency contracts to purchase US$109.4 millionexpected to mature over the next 13 months and Canadian dollar foreign currency contracts to purchase US$11.5 million expected to mature over the next four months.

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The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands):

	Location of Gain (Loss) Recognized in Earnings	Gain (Loss) Recognized in Earnings					Gain Recognized in Earnings
		Three Months Ended Aug 2, 2014		Three Months Ended Aug 3, 2013			Six Months Ended Aug 2, 2014		Six Months Ended Aug 3, 2013
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other income/expense	$	3,984	$	(727	)	$	1,195	$	3,049
Interest rate swaps	Other income/expense	$	57	$	118		$	132	$	196

At February 1, 2014, the Company had euro foreign currency contracts to purchase US$111.8 millionand Canadian dollar foreign currency contracts to purchase US$13.8 million.

(16) Subsequent Events

On August 27, 2014, the Company announced a regular quarterly cash dividend of $0.225 per share on the Company’s common stock. The cash dividend will be paid on September 26, 2014 to shareholders of record as of the close of business on September 10, 2014.

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

General

Unless the context indicates otherwise, when we refer to “we,” “us,” “our” or the “Company” in this Form 10-Q, we are referring to Guess?, Inc. (“GUESS?”) and its subsidiaries on a consolidated basis.

Important Factors Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q, including documents incorporated by reference herein, contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements may also be contained in the Company’s other reports filed under the Securities Exchange Act of 1934, as amended, in its press releases and in other documents. In addition, from time-to-time, the Company through its management may make oral forward-looking statements. These statements relate to analyses and other information based on forecasts of future results and estimates of amounts not yet determinable. These statements also relate to our goals, future prospects and proposed new products, services, developments or business strategies. These forward-looking statements are identified by their use of terms and phrases such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend,” “may,” “outlook,” “pending,” “plan,” “predict,” “project,” “strategy,” “will,” “would,” and other similar terms and phrases, including references to assumptions.

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed. These forward-looking statements may include, among other things, statements relating to our expected results of operations, the accuracy of data relating to, and anticipated levels of, future inventory and gross margins, anticipated cash requirements and sources, cost containment efforts, restructuring charges, estimated charges, plans regarding store openings, closings and remodels, plans regarding business growth and international expansion, plans regarding supply chain efficiencies and global planning and allocation, e-commerce and omni-channel initiatives, business seasonality, results of litigation, industry trends, consumer demands and preferences, competition, currency fluctuations, estimated tax rates, results of tax audits and other regulatory proceedings, raw material and other inflationary cost pressures, consumer confidence and general economic conditions. We do not intend, and undertake no obligation, to update our forward-looking statements to reflect future events or circumstances. Such statements involve risks and uncertainties, which may cause actual results to differ materially from those set forth in these statements. Important factors that could cause or contribute to such difference include those discussed under “Part I, Item 1A. Risk Factors” contained in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended February 1, 2014 and in our other filings made from time-to-time with the Securities and Exchange Commission (“SEC”) after the date of this report.

Business Segments

The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: North American Retail, Europe, Asia, North American Wholesale and Licensing. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before restructuring charges, if any. The Company believes this segment reporting reflects how its five business segments are managed and each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The North American Retail segment includes the Company’s retail and e-commerce operations in North America and its retail operations in Central and South America. The Europe segment includes the Company’s wholesale, retail and e-commerce operations in Europe and the Middle East. The Asia segment includes the Company’s wholesale, retail and e-commerce operations in Asia. The North American Wholesale segment includes the Company’s wholesale operations in North America and Central and South America. The Licensing segment includes the worldwide licensing operations of the Company. The business segment operating results exclude corporate overhead costs, which consist of shared costs of the organization, and restructuring charges. These costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, facilities, global advertising and marketing, human resources, information technology and legal. Information relating to these segments is summarized in Note 8 to the Condensed Consolidated Financial Statements.

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Products

We derive our net revenue from the sale of GUESS?, G by GUESS, GUESS Kids and MARCIANO apparel and our licensees’ products through our worldwide network of retail stores, wholesale customers and distributors, as well as our on-line sites. We also derive royalty revenue from worldwide licensing activities.

Global Economic Conditions

Economic and market conditions have continued to be volatile and uncertain in many markets around the world and consumer behavior remains cautious. In North America, the relatively weaker levels of consumer confidence and the highly promotional conditions among retailers may persist. In Europe, sovereign debt issues, government austerity programs and bank credit issues have impacted the capital markets of numerous European countries, resulting in reduced consumer confidence and discretionary spending in those countries. These circumstances have had, and could in the future have, a negative impact on our business, particularly in our more mature markets in Southern Europe. The impact could be greater in our multi-brand wholesale channel, particularly in Italy, where many customers are relatively small and are not well capitalized. While the economic environment in Southern Europe has shown signs of improvement, the turmoil in Russia and Ukraine could negatively impact our Eastern European business. We also continue to see evidence of a more cautious consumer in China, where the economy has shown clear signs of slowing, as well as a more volatile environment in South Korea.

Foreign Currency Volatility

Since the majority of our international operations are conducted in currencies other than the U.S. dollar (primarily the euro, Canadian dollar and Korean won), currency fluctuations can have a significant impact on the translation of our international revenues and earnings into U.S. dollar amounts.

During the first half of fiscal 2015, the average U.S. dollar rate was weaker against the euro and the Korean won and stronger against the Canadian dollar compared to the average rate in the same prior-year period. This had an overall positive impact on the translation of our international revenues and earnings from operations for the six months ended August 2, 2014 compared to the same prior-year period.

In addition, some of our transactions that occur primarily in Europe, Canada and South Korea are denominated in U.S. dollars, Swiss francs and British pounds, exposing them to exchange rate fluctuations when converted to their functional currencies. Fluctuations in exchange rates can impact the operating margins of our foreign operations and reported earnings and are largely dependent on the transaction timing and magnitude during the period that the currency fluctuates. If the exchange rate for the euro, Canadian dollar or Korean won weakens versus the U.S. dollar at the time U.S. dollar denominated inventory is purchased relative to the purchases of the comparable period, our product margins could be unfavorably impacted. Our product margins in Canada for the six months ended August 2, 2014 were negatively impacted as a result of exchange rate fluctuations compared to the same prior-year period. There was a positive impact on our product margins in Europe and South Korea for the six months ended August 2, 2014 as a result of exchange rate fluctuations compared to the same prior-year period.

The Company enters into derivative financial instruments to offset some but not all of the exchange risk on foreign currency transactions. For additional discussion regarding our exposure to foreign currency risk, forward contracts designated as hedging instruments and forward contracts not designated as hedging instruments, refer to “Item 3. Quantitative and Qualitative Disclosures About Market Risk.”

Strategy

International Growth. Global expansion continues to be a key component of our long-term growth strategy. Our combined revenues outside of the U.S. and Canada represented approximately half of the Company’s total revenues for the six months ended August 2, 2014, compared to one-fifth in fiscal 2005. We expect to continue to expand in our existing international markets, particularly in less mature markets like Germany, the Middle East and Russia. At the same time, we plan to develop in newer key markets such as Brazil and Japan.

Omni-Channel Strategy. We will also continue to emphasize our e-commerce channel as we execute our omni-channel strategy. Our omni-channel strategy allows customers to shop seamlessly in retail stores, online

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and through mobile devices. We have already deployed certain initiatives in the U.S. including “reserve online, pick-up in stores” as well as mobile optimized commerce sites and smartphone applications. We have also developed our in-store fulfillment capabilities which optimize inventory located in our retail stores. U.S. e-commerce orders may be fulfilled from our e-commerce distribution center, or from our retail stores, or both, and U.S. retail store sales may be fulfilled from one of our numerous retail store locations or from our e-commerce distribution center.

Productivity Improvements. One of our goals is to drive increased profitability by enhancing the productivity of our existing operations. We continue to focus on improving supply chain efficiencies and optimizing global planning and allocation. In North America, we are also simplifying processes, realigning departments and merging support functions to reduce our fixed cost structure in these areas. In addition, we continue to be opportunistic with our store openings, remodels, and lease renewals to optimize our existing store portfolio. We will continue to regularly assess and implement initiatives that we believe will build brand equity, grow our business and enhance long-term profitability in each region.

North American Retail. In North American Retail, we plan to increase the profitability for our brick-and-mortar locations over the long-term by improving the productivity and performance of our existing stores. In light of the changing retail landscape in North America and the shifting of consumer purchases towards e-commerce, we have conducted an analysis of our existing store portfolio and have identified under-performing stores that we plan to exit before the end of fiscal 2016 through a combination of lease expirations and kick-outs. This will provide the opportunity for us to streamline our North American Retail organization and reduce our fixed costs. In addition, roughly half of our retail store leases in the U.S. and Canada will come up for renewal in the next three and a half years, providing us with the flexibility to further optimize our retail footprint as needed in the coming years.

Europe. In Europe, over the long-term, we will continue to focus on cautiously developing new markets in Northern and Eastern Europe where our brand is well known but still under-penetrated. We have flagship stores in key cities such as Barcelona, Dusseldorf, London, Milan, Munich and Paris. During fiscal 2015, we and our partners plan to continue our retail store expansion primarily in Northern and Eastern Europe as well as the Middle East, but we expect this to be partially offset by the closure of certain under-performing stores mainly in Southern Europe, as lease terms permit.

Asia. We see significant long-term market opportunities in Asia and we have dedicated capital and human resources to support the region’s growth and development. We and our partners have opened flagship stores in key cities such as Beijing, Hong Kong, Seoul and Shanghai, and we have partnered with licensees to develop our business in the second-tier and third-tier cities in this region. In China, where the economy has shown some signs of slowing, we see evidence of a more cautious consumer. Our strategy in South Korea, with a combined 431 stores and concessions at August 2, 2014, is to improve productivity and expand distribution for both our GUESS? and G by GUESS branded locations. We also continue to invest in our direct operations in Japan where we had three stores and one concession as of August 2, 2014. During the first half of fiscal 2015, we and our partners opened 63 new stores and concessions and closed 59 stores and concessions in Asia, ending the second quarter of fiscal 2015 with 495 stores and 500 concessions. We and our partners plan to open between 90 and 95 retail stores and concessions in total across all concepts in Asia during fiscal 2015.

Capital Allocation

The Company’s investments in capital for the full fiscal year 2015 are planned between $70 million and $80 million (after deducting estimated lease incentives of approximately $5 million).The planned investments in capital are primarily for store remodeling programs in North American Retail, expansion of our retail business in Europe, investments in information systems and new store openings in North America.

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Comparable Store Sales

As a result of our omni-channel strategy, our e-commerce business has become strongly intertwined with our brick-and-mortar retail store business. Therefore, we believe that the inclusion of e-commerce sales in our comparable store sales metric provides a more meaningful representation of our retail results. In the first quarter of fiscal 2015, the Company began including the results of our e-commerce sites in our quarterly comparable store sales results for our stores in the U.S. and Canada. We also continue to separately report the impact of e-commerce sales on our comparable store sales metric.

Sales from our brick-and-mortar retail stores include purchases that are initiated, paid for and fulfilled at our retail stores as well as merchandise that is reserved online but paid for and picked-up at our retail stores. Sales from our e-commerce sites include purchases that are initiated and paid for online and shipped from either our e-commerce distribution center or our retail stores as well as purchases that are initiated in a retail store, but due to inventory availability at the retail store, are ordered and paid for online and shipped from our e-commerce distribution center or a different retail store.

Store sales are considered comparable after the store has been open for 13 full months. If a store remodel results in a square footage change of more than 15%, or involves a relocation or a change in store concept, the store sales are removed from the comparable store base until the store has been opened at its new size, in its new location or under its new concept for 13 full months. E-commerce sales are considered comparable after the online site has been operational in a country for 13 full months and exclude any related revenue from shipping fees.    

Definitions and calculations of comparable store sales used by the Company may differ from similarly titled measures reported by other companies.

Other

The Company operates on a 52/53-week fiscal year calendar, which ends on the Saturday nearest to January 31 of each year. The three and six months ended August 2, 2014 had the same number of days as the three and six months ended August 3, 2013.

Executive Summary

Overview

Net earnings attributable to Guess?, Inc. decreased 44.9% to $22.0 million, or diluted earnings of $0.26 per common share, for the quarter ended August 2, 2014, compared to net earnings attributable to Guess?, Inc. of $39.9 million, or diluted earnings of $0.47 per common share, for the quarter ended August 3, 2013. During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. These actions resulted in restructuring charges for the quarter ended August 3, 2013 of $6.1 million (or $4.4 million after considering the $1.7 million reduction to income tax expense as a result of the charge), or an unfavorable after-tax impact of $0.05 per share. Excluding the impact of the restructuring charges and the related tax impact, adjusted net earnings attributable to Guess?, Inc. was $44.3 million and adjusted diluted earnings was $0.52 per common share for the quarter ended August 3, 2013. References to financial results excluding the impact of the restructuring charges are non-GAAP measures and are addressed below under “Non-GAAP Measures.”

Highlights of the Company’s performance for the quarter ended August 2, 2014 compared to the same prior-year period are presented below, followed by a more comprehensive discussion under “Results of Operations”:

Operations

• Total net revenue decreased 4.8% to $608.6 million for the quarter ended August 2, 2014, from $639.0 million in the same prior-year period. In constant currency, net revenue decreased by 6.3%.

• Gross margin (gross profit as a percentage of total net revenue) decreased 330 basis points to 35.6% for the quarter ended August 2, 2014, compared to 38.9% in the same prior-year period.

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• Selling, general and administrative (“SG&A”) expenses increased 2.9% to $186.9 million for the quarter ended August 2, 2014, compared to $181.6 million in the same prior-year period. SG&A expenses as a percentage of revenue (“SG&A rate”) increased by 230 basis points to 30.7% for the quarter ended August 2, 2014, compared to 28.4% in the same prior-year period.

• The Company incurred $6.1 million in restructuring charges during the quarter ended August 3, 2013.

• Earnings from operations decreased 50.9% to $29.9 million for the quarter ended August 2, 2014, compared to $60.8 million in the same prior-year period. Operating margin decreased by 460 basis points to 4.9% for the quarter ended August 2, 2014, compared to 9.5% in the same prior-year period.

• Other income, net (including interest income and expense), totaled $4.3 million for the quarter ended August 2, 2014, compared to minimal other expense, net in the same prior-year period.

• The effective income tax rate increased 180 basis points to 34.8% for the quarter ended August 2, 2014, compared to 33.0% in the same prior-year period. 

Key Balance Sheet Accounts

• The Company had $466.5 million in cash and cash equivalents and short-term investments as of August 2, 2014, up $117.8 million, compared to $348.7 million at August 3, 2013.

• Accounts receivable, which relates primarily to the Company’s wholesale business in Europe, and to a lesser extent, to its wholesale businesses in North America and Asia and its international licensing business, decreased by $37.9 million, or 14.0%, to $233.9 million as of August 2, 2014, compared to $271.8 million at August 3, 2013. On a constant currency basis, accounts receivable decreased$40.6 million, or 15.0%.

• Inventory decreased by $7.7 million, or 1.9%, to $392.4 million as of August 2, 2014, compared to $400.1 million at August 3, 2013. When measured in terms of finished goods units, inventory volumes increased by 1.4%as of August 2, 2014, when compared to August 3, 2013.

Global Store Count

In the second quarter of fiscal 2015, together with our partners, we opened 28 new stores worldwide, consisting of 13 stores in Asia,eight stores in Europe and the Middle East, four stores in the U.S. and Canada and three stores in South and Central America. Together with our partners, we closed 40 stores worldwide, consisting of 16 stores in Europe and the Middle East, 15 stores in Asia, seven stores in the U.S. and Canada and two stores in Central and South America.

We ended the second quarter of fiscal 2015 with 1,685 stores worldwide, comprised as follows:

Region	Total Stores	Directly Operated Stores	Licensee Stores
United States and Canada	488	488	—
Europe and the Middle East	615	264	351
Asia	495	46	449
Central and South America	87	39	48
Total	1,685	837	848

This store count does not include 506 concessions located primarily in South Korea and Greater China, which have been excluded because of their smaller store size in relation to our standard international store size. Of the total 1,685 stores, 1,222 were GUESS? stores, 270 were GUESS? Accessories stores, 104 were G by GUESS stores and 89 were MARCIANO stores.

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Results of Operations

Three Months Ended August 2, 2014 and August 3, 2013

Consolidated Results

Net Revenue. Net revenue decreased by $30.4 million, or 4.8%, to $608.6 million for the quarter ended August 2, 2014, from $639.0 million for the quarter ended August 3, 2013. In constant currency, net revenue decreased by 6.3% as currency translation fluctuations relating to our foreign operations favorably impacted net revenue by $9.5 million compared to the same prior-year period. The decrease in revenue was driven primarily by lower European wholesale shipments and negative comparable store sales in North American Retail, partially offset by the favorable impact on revenue from expansion of our directly operated retail business in Europe.

Gross Profit.Gross profit decreased by $31.7 million, or 12.8%, to $216.8 million for the quarter ended August 2, 2014, from $248.5 million in the same prior-year period, due primarily to the unfavorable impact from lower wholesale sales in Europe, lower overall product margins and negative comparable store sales in North American Retail.

Gross margin decreased 330 basis points to 35.6% for the quarter ended August 2, 2014, from 38.9% in the same prior-year period, due to lower overall product margins and a higher occupancy rate. Product margins declined due primarily to more retail markdowns in North America and Europe. The higher occupancy rate was driven by negative comparable store sales in North American Retail and lower wholesale shipments in Europe.

The Company’s gross margin may not be comparable to that of other entities since some entities include all of the costs related to their distribution in cost of product sales and others, like the Company, generally exclude wholesale-related distribution costs from gross margin, including them instead in SG&A expenses. Additionally, some entities include retail store occupancy costs in SG&A expenses and others, like the Company, include retail store occupancy costs, including rent and depreciation, in cost of product sales.

Selling, General and Administrative Expenses. SG&A expenses increased by $5.3 million, or 2.9%, to $186.9 million for the quarter ended August 2, 2014, from $181.6 million in the same prior-year period. The increase in SG&A expenses, which included the unfavorable impact of currency translation, was due primarily to higher general and administrative expenses, partially offset by lower investments in advertising and marketing and lower selling and merchandising expenses in Europe.

The Company’s SG&A rate increased by 230 basis points to 30.7% for the quarter ended August 2, 2014, from 28.4% in the same prior-year period, due primarily to higher general and administrative expenses and the negative impact on the Company’s fixed cost structure resulting from lower European wholesale shipments and negative comparable store sales in North American Retail.

Restructuring Charges. There were no restructuring charges incurred during the quarter ended August 2, 2014. During the quarter ended August 3, 2013, the Company incurred restructuring charges of $6.1 million.

Earningsfrom Operations. Earnings from operations decreased by $30.9 million, or 50.9%, to $29.9 million for the quarter ended August 2, 2014, from $60.8 million in the same prior-year period. Currency translation fluctuations relating to our foreign operations favorably impacted earnings from operations by $0.9 million.

Operating margin decreased 460 basis points to 4.9% for the quarter ended August 2, 2014, compared to 9.5% in the same prior-year period. Operating margin was negatively impacted by lower overall gross margins and a higher SG&A rate, partially offset by restructuring charges incurred during the same prior-year period.

Interest Income (Expense), Net. Interest expense, net was $0.5 million for the quarter ended August 2, 2014, compared to interest income, net of $0.1 million for the quarter ended August 3, 2013, and includes the impact of hedge ineffectiveness of foreign currency forward contracts designated as cash flow hedges.

Other Income (Expense), Net. Other income, net was $4.8 million for the quarter ended August 2, 2014, compared to other expense, net of $0.1 million in the same prior-year period. Other income, net in the quarter ended August 2, 2014 consisted primarily of net unrealized and realized mark-to-market revaluation gains on foreign currency contracts and net unrealized gains on non-operating assets. Other expense, net in the quarter ended August 3,

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2013 consisted primarily of net unrealized mark-to-market revaluation losses on foreign currency contracts and other foreign currency balances, partially offset by net unrealized gains on non-operating assets.

Income Tax Expense.  Income tax expense for the quarter ended August 2, 2014 was $11.9 million, or a 34.8% effective tax rate, compared to $20.0 million, or a 33.0% effective tax rate, in the same prior-year period. Generally, income taxes for the interim periods are computed using the effective tax rate estimated to be applicable for the full fiscal year which is subject to ongoing review and evaluation by management. The increase in effective tax rate compared to the same prior-year period was driven by a shift in the distribution of earnings among the Company’s tax jurisdictions within the quarters of the current fiscal year. The full-year tax rate for fiscal 2015 is expected to be 32.0%.

Net Earnings Attributable to Noncontrolling Interests. Net earnings attributable to noncontrolling interests for the quarter ended August 2, 2014 was $0.3 million, net of taxes, compared to $0.8 million, net of taxes, in the same prior-year period.

Net Earnings Attributable to Guess?, Inc. Net earnings attributable to Guess?, Inc. decreased by $17.9 million, or 44.9%, to $22.0 million for the quarter ended August 2, 2014, from $39.9 million in the same prior-year period. Diluted earnings per share decreased to $0.26 per share for the quarter ended August 2, 2014, compared to $0.47 for the quarter ended August 3, 2013. The results for the quarter ended August 3, 2013 included the unfavorable $0.05 per share after-tax impact of the restructuring charges. Excluding the impact of the restructuring charges and the related tax impact, adjusted net earnings attributable to Guess?, Inc. was $44.3 million and adjusted diluted earnings was $0.52 per common share for the quarter ended August 3, 2013. References to financial results excluding the impact of the restructuring charges are non-GAAP measures and are addressed below under “Non-GAAP Measures.”

Information by Business Segment

The following table presents our net revenue and earnings (loss) from operations by segment for the three months ended August 2, 2014 and August 3, 2013:

	Three Months Ended
	Aug 2, 2014			Aug 3, 2013			Change			% Change
	(dollars in thousands)
Net revenue:
North American Retail	$	244,000		$	254,313		$	(10,313	)	(4.1	%)
Europe	235,260			250,372			(15,112		)	(6.0	)
Asia	64,267			65,852			(1,585		)	(2.4	)
North American Wholesale	38,252			41,357			(3,105		)	(7.5	)
Licensing	26,792			27,118			(326		)	(1.2	)
Total net revenue	$	608,571		$	639,012		$	(30,441	)	(4.8	%)
Earnings (loss) from operations:
North American Retail	$	(4,662	)	$	10,390		$	(15,052	)	(144.9	%)
Europe	24,513			39,275			(14,762		)	(37.6	)
Asia	2,264			5,039			(2,775		)	(55.1	)
North American Wholesale	5,167			8,478			(3,311		)	(39.1	)
Licensing	24,909			25,101			(192		)	(0.8	)
Corporate Overhead	(22,333		)	(21,374		)	(959		)	4.5
Restructuring Charges	—			(6,129		)	6,129
Total earnings from operations	$	29,858		$	60,780		$	(30,922	)	(50.9	%)
Operating margins:
North American Retail	(1.9		%)	4.1		%
Europe	10.4		%	15.7		%
Asia	3.5		%	7.7		%
North American Wholesale	13.5		%	20.5		%
Licensing	93.0		%	92.6		%
Total Company	4.9		%	9.5		%

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North American Retail

Net revenue from our North American Retail operations decreased by $10.3 million, or 4.1%, to $244.0 million for the quarter ended August 2, 2014, from $254.3 million in the same prior-year period. The decrease in revenue was driven by negative comparable store sales (including e-commerce) of 5.4% in the U.S. and Canada and negative 4.4% in constant currency, which also excludes the unfavorable translation impact of currency fluctuations relating to our Canadian retail stores. E-commerce sales increased by $4.9 million, or 47.8%, to $15.2 million for the quarter ended August 2, 2014, from $10.3 million in the same prior-year period. The inclusion of our e-commerce sales improved the comparable store sale percentage by 2.7% in U.S. dollars and constant currency. The store base for the U.S. and Canada decreased by an average of 19 net stores during the quarter ended August 2, 2014 compared to the same prior-year period, resulting in a 1.7% net decrease in average square footage. Currency translation fluctuations relating to our non-U.S. retail stores unfavorably impacted net revenue by $2.6 million.

Loss from operations for the North American Retail segment was $4.7 million for the quarter ended August 2, 2014, compared to earnings from operations of $10.4 million in the same prior-year period. The decrease reflects the impact on earnings from lower product margins, negative comparable store sales and higher general and administrative expenses.

Operating margin decreased 600 basis points to negative 1.9% for the quarter ended August 2, 2014, compared to 4.1% in the same prior-year period. The decrease was driven by the negative impact on the fixed cost structure resulting from negative comparable store sales, lower product margins due primarily to more markdowns and higher asset impairment charges related to certain under-performing retail stores.

In the second quarter of fiscal 2015, we opened four new stores and closed seven stores in the U.S. and Canada. At August 2, 2014, we directly operated 488 stores in the U.S. and Canada, comprised of 173 full-priced GUESS? retail stores, 138 GUESS? factory outlet stores, 79 G by GUESS stores, 49 GUESS? Accessories stores and 49 MARCIANO stores. This compares to 507 stores as of August 3, 2013.

Europe

Net revenue from our Europe operations decreased by $15.1 million, or 6.0%, to $235.3 million for the quarter ended August 2, 2014, from $250.4 million in the same prior-year period. In local currency, net revenue decreased by 9.5% versus the same prior-year period. The decrease in revenue was driven primarily by lower shipments in our European wholesale business and a percentage decrease in the low single digits for comparable store sales in our directly operated retail stores versus the same prior-year period. These decreases were partially offset by the favorable impact on revenue from the expansion of our directly operated retail business. As of August 2, 2014, we directly operated 264 stores in Europe compared to 257 stores at August 3, 2013, excluding concessions, which represents a 2.7%increase over the prior-year second quarter end. Currency translation fluctuations relating to our European operations favorably impacted net revenue by $8.7 million.

Earnings from operations from our Europe segment decreased by $14.8 million, or 37.6%, to $24.5 million for the quarter ended August 2, 2014, from $39.3 million in the same prior-year period. The decrease resulted primarily from the negative impact on earnings from lower wholesale shipments and lower overall product margins, partially offset by lower selling and merchandising expenses due to lower wholesale commissions.

Operating margin decreased 530 basis points to 10.4% for the quarter ended August 2, 2014, compared to 15.7% in the same prior-year period. The decrease in operating margin was driven primarily by the negative impact on the fixed cost structure resulting from lower wholesale shipments and lower overall product margins due primarily to increased retail promotions compared to the same prior-year period.

Asia

Net revenue from our Asia operations decreased by $1.6 million, or 2.4%, to $64.3 million for the quarter ended August 2, 2014, from $65.9 million in the same prior-year period. In constant currency, net revenue decreased by 8.5% versus the same prior-year period, driven primarily by negative comparable store sales in our directly operated retail stores in South Korea and China versus the same prior-year period. We continued to grow

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our operations in Asia, where we and our partners operated 495 stores and 500 concessions at August 2, 2014, compared to 474 stores and 432 concessions as of August 3, 2013. Currency translation fluctuations relating to our Asia operations favorably impacted net revenue by $4.0 million.

Earnings from operations for the Asia segment decreased by $2.8 million, or 55.1%, to $2.3 million for the quarter ended August 2, 2014, from $5.0 million in the same prior-year period. The decrease was driven by the unfavorable impact on earnings from lower revenue and lower product margins.

Operating margin decreased 420 basis points to 3.5% for the quarter ended August 2, 2014, compared to 7.7% in the same prior-year period. The decrease in operating margin was driven by lower overall gross margins due primarily to product and channel mix and overall deleveraging of SG&A expenses.

North American Wholesale

Net revenue from our North American Wholesale operations decreased by $3.1 million, or 7.5%, to $38.3 million for the quarter ended August 2, 2014, from $41.4 million in the same prior-year period. In constant currency, net revenue decreased by 6.2% compared to the same prior-year period. This decrease was driven by lower off-price shipments in the U.S. and Canada. Currency translation fluctuations relating to our non-U.S. wholesale businesses unfavorably impacted net revenue in our North American Wholesale segment by $0.5 million.

Earnings from operations from our North American Wholesale segment decreased by $3.3 million, or 39.1%, to $5.2 million for the quarter ended August 2, 2014, from $8.5 million in the same prior-year period. The decrease was due primarily to the unfavorable impact on earnings from higher SG&A expenses and lower overall gross margins.

Operating margin decreased 700 basis points to 13.5% for the quarter ended August 2, 2014, compared to 20.5% in the same prior-year period. The decrease in operating margin was driven by deleveraging of SG&A expenses and lower overall gross margins.

Licensing

Net royalty revenue from our Licensing operations decreased by $0.3 million, or 1.2%, to $26.8 million for the quarter ended August 2, 2014, from $27.1 million in the same prior-year period. The decrease was driven primarily by lower sales in our watch and handbag categories.

Earnings from operations from our Licensing segment decreased by $0.2 million, or 0.8%, to $24.9 million for the quarter ended August 2, 2014, from $25.1 million in the same prior-year period. The decrease was driven primarily by the unfavorable impact to earnings from lower revenue.

Corporate Overhead

Unallocated corporate overhead increased by $1.0 million to $22.3 million for the quarter ended August 2, 2014, from $21.4 million in the same prior-year period. The increase was driven primarily by higher general and administrative expenses, partially offset by lower performance-based compensation and lower investments in advertising and marketing.

Six Months EndedAugust 2, 2014 and August 3, 2013

Consolidated Results

Net Revenue. Net revenue decreased by $56.8 million, or 4.8%, to $1.13 billion for the six months ended August 2, 2014, from $1.19 billion for the six months ended August 3, 2013. In constant currency, net revenue decreased by 5.9% as currency translation fluctuations relating to our foreign operations favorably impacted net revenue by $13.7 million compared to the same prior-year period. The decrease in revenue was driven primarily by lower European wholesale shipments and negative comparable store sales in North American Retail, partially offset by the favorable impact on revenue from expansion of our directly operated retail business in Europe.

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Gross Profit.Gross profit decreased by $53.0 million, or 11.9%, to $393.0 million for the six months ended August 2, 2014, from $446.0 million in the same prior-year period, due primarily to the unfavorable impact from lower wholesale sales in Europe, lower overall product margins and negative comparable store sales in North American Retail.

Gross margin decreased 280 basis points to 34.7% for the six months ended August 2, 2014, from 37.5% in the same prior-year period, due to a higher occupancy rate and lower overall product margins. The higher occupancy rate was driven by negative comparable store sales in North American Retail and lower wholesale shipments in Europe. Product margins declined due primarily to more retail markdowns in North America and Europe.

Selling, General and Administrative Expenses. SG&A expenses decreased by $0.3 million, or 0.1%, to $365.1 million for the six months ended August 2, 2014, from $365.4 million in the same prior-year period. The decrease in SG&A expenses, which included the unfavorable impact of currency translation, was due primarily to lower selling and merchandising expenses in Europe and lower investments in advertising and marketing, partially offset by higher general and administrative expenses.

The Company’s SG&A rate increased by 150 basis points to 32.2% for the six months ended August 2, 2014, from 30.7% in the same prior-year period, due primarily to the negative impact on the Company’s fixed cost structure resulting from lower wholesale shipments in Europe and negative comparable store sales in North American Retail, partially offset by lower selling and merchandising expenses in Europe.

Restructuring Charges. There were no restructuring charges incurred during the six months ended August 2, 2014. During the six months ended August 3, 2013, the Company incurred restructuring charges of $8.5 million.

Earningsfrom Operations. Earnings from operations decreased by $44.2 million, or 61.3%, to $27.9 million for the six months ended August 2, 2014, from $72.1 million in the same prior-year period. Currency translation fluctuations relating to our foreign operations favorably impacted earnings from operations by $0.6 million.

Operating margin decreased 360 basis points to 2.5% for the six months ended August 2, 2014, compared to 6.1% in the same prior-year period. Operating margin was negatively impacted by lower overall gross margins and a higher SG&A rate, partially offset by restructuring charges incurred during the same prior-year period.

Interest Expense, Net. Interest expense, net was $0.6 million for the six months ended August 2, 2014, compared to interest expense, net of $0.1 million for the six months ended August 3, 2013, and includes the impact of hedge ineffectiveness of foreign currency forward contracts designated as cash flow hedges.

Other Income, Net. Other income, net was $3.6 million for the six months ended August 2, 2014, compared to other income, net of $5.3 million in the same prior-year period. Other income, net in the six months ended August 2, 2014 consisted primarily of net unrealized gains on non-operating assets and net unrealized mark-to-market revaluation gains on foreign currency contracts. Other income, net in the six months ended August 3, 2013 consisted primarily of net unrealized mark-to-market revaluation gains on foreign currency contracts and net unrealized gains on non-operating assets.

Income Tax Expense.  Income tax expense for the six months ended August 2, 2014 was $10.9 million, or a 35.1% effective tax rate, compared to $25.5 million, or a 33.0% effective tax rate, in the same prior-year period. Generally, income taxes for the interim periods are computed using the effective tax rate estimated to be applicable for the full fiscal year which is subject to ongoing review and evaluation by management. The increase in effective tax rate compared to the same prior-year period was driven by a shift in the distribution of earnings among the Company’s tax jurisdictions within the quarters of the current fiscal year. The full-year tax rate for fiscal 2015 is expected to be 32.0%.

Net Earnings Attributable to Noncontrolling Interests. Net earnings attributable to noncontrolling interests for the six months ended August 2, 2014 was $0.2 million, net of taxes, compared to $2.0 million, net of taxes, in the same prior-year period.

Net Earnings Attributable to Guess?, Inc. Net earningsattributable to Guess?, Inc. decreased by $29.9 million, or 60.1%, to $19.9 million for the six months ended August 2, 2014, from $49.8 million in the same prior-year

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period. Diluted earnings per share decreased to $0.23 per share for the six months ended August 2, 2014, compared to $0.58 for the six months ended August 3, 2013. The results for the six months ended August 3, 2013 included the unfavorable $0.08 per share after-tax impact of the restructuring charges. Excluding the impact of the restructuring charges and the related tax impact, adjusted net earnings attributable to Guess?, Inc. was $56.0 million and adjusted diluted earnings was $0.66 per common share for the six months ended August 3, 2013. References to financial results excluding the impact of the restructuring charges are non-GAAP measures and are addressed below under “Non-GAAP Measures.”

Information by Business Segment

The following table presents our net revenue and earnings (loss) from operations by segment for the six months ended August 2, 2014 and August 3, 2013:

	Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Change			% Change
	(dollars in thousands)
Net revenue:
North American Retail	$	472,344		$	492,624		$	(20,280	)	(4.1	%)
Europe	394,418			415,764			(21,346		)	(5.1	)
Asia	134,385			136,984			(2,599		)	(1.9	)
North American Wholesale	77,560			85,186			(7,626		)	(9.0	)
Licensing	52,405			57,368			(4,963		)	(8.7	)
Total net revenue	$	1,131,112		$	1,187,926		$	(56,814	)	(4.8	%)
Earnings (loss) from operations:
North American Retail	$	(13,061	)	$	6,157		$	(19,218	)	(312.1	%)
Europe	17,881			34,057			(16,176		)	(47.5	)
Asia	5,617			12,003			(6,386		)	(53.2	)
North American Wholesale	12,920			17,127			(4,207		)	(24.6	)
Licensing	47,630			51,305			(3,675		)	(7.2	)
Corporate Overhead	(43,106		)	(40,078		)	(3,028		)	7.6
Restructuring Charges	—			(8,466		)	8,466
Total earnings from operations	$	27,881		$	72,105		$	(44,224	)	(61.3	%)
Operating margins:
North American Retail	(2.8		%)	1.2		%
Europe	4.5		%	8.2		%
Asia	4.2		%	8.8		%
North American Wholesale	16.7		%	20.1		%
Licensing	90.9		%	89.4		%
Total Company	2.5		%	6.1		%

North American Retail

Net revenue from our North American Retail operations decreased by $20.3 million, or 4.1%, to $472.3 million for the six months ended August 2, 2014, from $492.6 million in the same prior-year period. The decrease in revenue was driven by negative comparable store sales (including e-commerce) of 4.9% in the U.S. and Canada and negative3.6% in constant currency, which also excludes the unfavorable translation impact of currency fluctuations relating to our Canadian retail stores. E-commerce sales increased by $10.2 million, or 48.5%, to $31.2 million for the six months ended August 2, 2014, from $21.0 million in the same prior-year period. The inclusion of our e-commerce sales improved the comparable store sale percentage by 2.7% in U.S. dollars and constant currency. The store base for the U.S. and Canada decreased by an average of 18 net stores during the six months ended August 2, 2014 compared to the same prior-year period, resulting in a 1.6% net decrease in average square footage. Currency translation fluctuations relating to our non-U.S. retail stores unfavorably impacted net revenue by $6.4 million.

Loss from operations for the North American Retail segment was $13.1 million for the six months ended August 2, 2014, compared to earnings from operations of $6.2 million in the same prior-year period. The decrease reflects the impact on earnings from lower product margins and negative comparable store sales.

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Operating margin decreased 400 basis points to negative 2.8% for the six months ended August 2, 2014, compared to 1.2% in the same prior-year period. The decrease was driven by the negative impact on the fixed cost structure resulting from negative comparable store sales and lower product margins due primarily to more markdowns.

Europe

Net revenue from our Europe operations decreased by $21.3 million, or 5.1%, to $394.4 million for the six months ended August 2, 2014, from $415.8 million in the same prior-year period. In local currency, net revenue decreased by 8.9% versus the same prior-year period. The decrease in revenue was driven primarily by lower shipments in our European wholesale business, partially offset by the favorable impact on revenue from the expansion of our directly operated retail business. As of August 2, 2014, we directly operated 264 stores in Europe compared to 257 stores at August 3, 2013, excluding concessions, which represents a 2.7%increase over the prior-year second quarter end. Currency translation fluctuations relating to our European operations favorably impacted net revenue by $15.8 million.

Earnings from operations from our Europe segment decreased by $16.2 million, or 47.5%, to $17.9 million for the six months ended August 2, 2014, from $34.1 million in the same prior-year period. The decrease resulted primarily from the negative impact on earnings from lower wholesale shipments, partially offset by lower selling and merchandising expenses due to lower wholesale commissions.

Operating margin decreased 370 basis points to 4.5% for the six months ended August 2, 2014, compared to 8.2% in the same prior-year period. The decrease in operating margin was driven primarily by the negative impact on the fixed cost structure resulting from lower wholesale shipments and increased retail promotions compared to the same prior-year period. These decreases were partially offset by lower selling and merchandising expenses and the favorable impact on margins from improved inventory management compared to the same prior-year period.

Asia

Net revenue from our Asia operations decreased by $2.6 million, or 1.9%, to $134.4 million for the six months ended August 2, 2014, from $137.0 million in the same prior-year period. In constant currency, net revenue decreased by 6.3% versus the same prior-year period. The decrease was driven primarily by softer consumer demand across the region. We continued to grow our operations in Asia, where we and our partners operated 495 stores and 500 concessions at August 2, 2014, compared to 474 stores and 432 concessions as of August 3, 2013. Currency translation fluctuations relating to our Asia operations favorably impacted net revenue by $6.0 million.

Earnings from operations for the Asia segment decreased by $6.4 million, or 53.2%, to $5.6 million for the six months ended August 2, 2014, from $12.0 million in the same prior-year period. The decrease was driven by the unfavorable impact on earnings from lower revenue and lower product margins.

Operating margin decreased 460 basis points to 4.2% for the six months ended August 2, 2014, compared to 8.8% in the same prior-year period. The decrease in operating margin was driven by lower overall gross margins due primarily to product and channel mix in South Korea and overall deleveraging of SG&A expenses.

North American Wholesale

Net revenue from our North American Wholesale operations decreased by $7.6 million, or 9.0%, to $77.6 million for the six months ended August 2, 2014, from $85.2 million in the same prior-year period. In constant currency, net revenue decreased by 7.0% compared to the same prior-year period. This decrease was driven by lower off-price shipments in the U.S. and Canada. Currency translation fluctuations relating to our non-U.S. wholesale businesses unfavorably impacted net revenue in our North American Wholesale segment by $1.7 million.

Earnings from operations from our North American Wholesale segment decreased by $4.2 million, or 24.6%, to $12.9 million for the six months ended August 2, 2014, from $17.1 million in the same prior-year period. The decrease was due primarily to the unfavorable impact to earnings from lower revenue, higher SG&A expenses and lower overall gross margins.

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Operating margin decreased 340 basis points to 16.7% for the six months ended August 2, 2014, compared to 20.1% in the same prior-year period. The decrease in operating margin was driven by deleveraging of SG&A expenses and lower overall gross margins.

Licensing

Net royalty revenue from our Licensing operations decreased by $5.0 million, or 8.7%, to $52.4 million for the six months ended August 2, 2014, from $57.4 million in the same prior-year period. The decrease was driven primarily by lower sales in our handbag, watch and eyewear categories.

Earnings from operations from our Licensing segment decreased by $3.7 million, or 7.2%, to $47.6 million for the six months ended August 2, 2014, from $51.3 million in the same prior-year period. The decrease was driven primarily by the unfavorable impact to earnings from lower revenue.

Corporate Overhead

Unallocated corporate overhead increased by $3.0 million to $43.1 million for the six months ended August 2, 2014, from $40.1 million in the same prior-year period. The increase was driven primarily by higher general and administrative expenses and higher performance-based compensation.

Non-GAAP Measures

The Company’s reported financial results are presented in accordance with GAAP. The reported net earnings attributable to Guess?, Inc. and diluted earnings per share for the three and six months ended August 3, 2013 reflect the impact of restructuring charges which affects the comparability of those reported results. Those financial results are also presented on a non-GAAP basis, as defined in Section 10(e) of Regulation S-K of the SEC, to exclude the effect of this item. The Company has excluded these restructuring charges, and related tax impact, from its adjusted financial measures primarily because it does not believe such charges reflect the Company’s ongoing operating results or future outlook. The Company believes that these “non-GAAP” or “adjusted” financial measures are useful as an additional means for investors to evaluate the comparability of the Company’s operating results when reviewed in conjunction with the Company’s GAAP financial statements. The non-GAAP measures are provided in addition to, and not as alternatives for, the Company’s reported GAAP results. 

The adjusted measures for the three and six months ended August 3, 2013 exclude the impact of restructuring charges. During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. These actions resulted in restructuring charges incurred during the three and six months ended August 3, 2013. During the three months ended August 3, 2013, the Company recognized charges of $6.1 million (or $4.4 million after considering a $1.7 million reduction to income tax expense as a result of the charges), or an unfavorable after-tax impact of $0.05 per share. During the six months ended August 3, 2013, the Company recognized restructuring charges of $8.5 million (or $6.2 million after considering a $2.2 million reduction to income tax expense as a result of the charges), or an unfavorable after-tax impact of $0.08 per share. Net earnings attributable to Guess?, Inc. for the three and six months ended August 3, 2013 was $39.9 million and $49.8 million, respectively, and diluted earnings per common share for the three and six months ended August 3, 2013 was $0.47 and $0.58, respectively. Excluding the impact of the restructuring charges and the related tax impacts, adjusted net earnings attributable to Guess?, Inc. for the three and six months ended August 3, 2013 was $44.3 million and $56.0 million, respectively, and adjusted diluted earnings per common share for the three and six months ended August 3, 2013 was $0.52 and $0.66, respectively.

Our discussion and analysis herein also includes certain constant currency financial information. Foreign currency exchange rate fluctuations affect the amount reported from translating the Company’s foreign revenues and expenses into U.S. dollars. These rate fluctuations can have a significant effect on reported operating results under GAAP. The Company provides constant currency information to enhance the visibility of underlying business trends, excluding the effects of changes in foreign currency translation rates. To calculate revenues and earnings from operations on a constant currency basis, operating results for the current-year period are translated

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into U.S. dollars at the average exchange rates in effect during the comparable period of the prior year. The constant currency calculations do not adjust for the impact of revaluing specific transactions denominated in a currency that is different to the functional currency of that entity when exchange rates fluctuate. The constant currency information presented may not be comparable to similarly titled measures reported by other companies.

Liquidity and Capital Resources

We need liquidity primarily to fund our working capital, the expansion and remodeling of our retail stores, shop-in-shop programs, concessions, systems, infrastructure, other existing operations, international growth, potential acquisitions, potential share repurchases and payment of dividends to our stockholders. During the six months ended August 2, 2014, the Company relied primarily on trade credit, available cash, real estate leases, short-term lines of credit and internally generated funds to finance our operations and expansion. The Company anticipates that we will be able to satisfy our ongoing cash requirements during the next twelve months for working capital, capital expenditures, interest and principal payments on our debt, potential acquisitions, potential share repurchases and any dividend payments to stockholders, primarily with cash flow from operations and existing cash balances supplemented by borrowings, as necessary, under our existing Credit Facility and bank facilities in Europe, as described below under “—Credit Facilities.”

As of August 2, 2014, the Company had cash and cash equivalents of $461.5 million and short-term investments of $5.0 million. Approximately 70% of the Company’s cash and cash equivalents were held outside of the U.S. As of August 2, 2014, we have not provided for U.S. federal and state income taxes on the undistributed earnings of our foreign subsidiaries, since such earnings are considered indefinitely reinvested outside the United States. If in the future we decide to repatriate such earnings, we would incur incremental U.S. federal and state income tax, reduced by allowable foreign tax credits. However, our intent is to keep these funds indefinitely reinvested outside of the United States and our current plans do not indicate a need to repatriate them to fund our U.S. operations. Due to the complexities associated with the hypothetical calculation, including the availability of foreign tax credits, it is not practicable to determine the unrecognized deferred tax liability related to the undistributed earnings.

Excess cash and cash equivalents, which represent the majority of our outstanding cash and cash equivalents balance, are held primarily in overnight deposit and short-term time deposit accounts and four diversified money market funds. The money market funds are AAA rated by national credit rating agencies and are generally comprised of high-quality, liquid investments. Please see “—Important Factors Regarding Forward-Looking Statements” and “Part I, Item 1A. Risk Factors” contained in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended February 1, 2014 for a discussion of risk factors which could reasonably be likely to result in a decrease of internally generated funds available to finance capital expenditures and working capital requirements.

The Company has presented below the cash flow performance comparison of the six months ended August 2, 2014, versus the six months ended August 3, 2013.

Operating Activities

Net cash provided by operating activities was $30.4 million for the six months ended August 2, 2014, compared to $102.2 million for the six months ended August 3, 2013, or a decrease of $71.8 million. The decrease was driven primarily by the unfavorable impact of changes in working capital and lower net earnings for the six months ended August 2, 2014 versus the same prior-year period. The change in working capital was driven primarily by the unfavorable impact from timing of payments, certain prepayments and inventory receipts compared to the same prior-year period.

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Investing Activities

Net cash used in investing activities was $32.6 million for the six months ended August 2, 2014, compared to $30.0 million for the six months ended August 3, 2013. Cash used in investing activities related primarily to capital expenditures incurred on existing store remodeling programs in North American Retail and Europe. In addition, the settlement of forward currency contracts designated as hedging instruments, the cost of any business acquisitions and proceeds from the sale and maturity of investments are also included in cash flows used in investing activities.

The increase in cash used in investing activities was driven primarily by cash receipts from other assets during the same prior-year period and net cash payments for settlement of forward contracts during the six months ended August 2, 2014 compared to net receipts for settlement of forward contracts in the same prior-year period, partially offset by a lower level of spending on new store expansion in Europe and North American Retail during the six months ended August 2, 2014 compared to the same prior-year period. During the six months ended August 2, 2014, the Company opened 19 directly operated stores compared to 31 directly operated stores that were opened in the comparable prior-year period. During each of the six months ended August 2, 2014 and August 3, 2013, the Company also acquired four stores from certain of its European licensees.

Financing Activities

Net cash used in financing activities was $40.6 million for the six months ended August 2, 2014, compared to $51.9 million for the six months ended August 3, 2013. The decrease in net cash used in financing activities was due primarily to repurchases of shares of the Company’s common stock during the six months ended August 3, 2013.

Effect of Exchange Rates on Cash

During the six months ended August 2, 2014, changes in foreign currency translation rates increased our reported cash and cash equivalents balance by $1.4 million. This compares to a decrease of $5.6 million in cash and cash equivalents driven by changes in foreign currency translation rates during the six months ended August 3, 2013.

Working Capital

As of August 2, 2014, the Company had net working capital (including cash and cash equivalents) of $842.1 million compared to $846.1 million at February 1, 2014 and $756.5 million at August 3, 2013. The Company’s primary working capital needs are for accounts receivable and inventory. Accounts receivable as of August 2, 2014 amounted to $233.9 million, down$37.9 million, compared to $271.8 million at August 3, 2013. The accounts receivable balance relates primarily to the Company’s wholesale business in Europe, and to a lesser extent, to its wholesale businesses in North America and Asia and its international licensing business. On a constant currency basis, accounts receivable decreased by $40.6 million, or 15.0%, when compared to August 3, 2013. The decrease in accounts receivable was driven primarily by lower European wholesale shipments during the six months ended August 2, 2014 compared to the same prior-year period. As of August 2, 2014, approximately 62% of our total net trade receivables were insured for collection purposes or subject to certain bank guarantees or letters of credit. In Europe, approximately 80% of our net trade receivables were insured for collection purposes or subject to certain bank guarantees or letters of credit. Inventory as of August 2, 2014decreased to $392.4 million, or 1.9%, compared to $400.1 million at August 3, 2013. When measured in terms of finished goods units, inventory volumes increased by 1.4%as of August 2, 2014, when compared to August 3, 2013.

Dividends

During the first quarter of fiscal 2008, the Company announced the initiation of a quarterly cash dividend of $0.06 per share of the Company’s common stock. Since that time, the Company has continued to pay a quarterly cash dividend, which has subsequently increased to $0.225 per common share.

On August 27, 2014, the Company announced a regular quarterly cash dividend of $0.225 per share on the Company’s common stock. The cash dividend will be paid on September 26, 2014 to shareholders of record as of the close of business on September 10, 2014.

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The payment of cash dividends in the future will be at the discretion of our Board of Directors and will be based upon a number of business, legal and other considerations, including our cash flow from operations, capital expenditures, debt service requirements, cash paid for income taxes, earnings, share repurchases, economic conditions and liquidity.

Capital Expenditures

Gross capital expenditures totaled $32.3 million, before deducting lease incentives of $3.2 million, for the six months ended August 2, 2014. This compares to gross capital expenditures of $40.4 million, before deducting lease incentives of $0.3 million, for the six months ended August 3, 2013. The Company’s investments in capital for the full fiscal year 2015 are planned between $70 million and $80 million (after deducting estimated lease incentives of approximately $5 million).The planned investments in capital are primarily for store remodeling programs in North American Retail, expansion of our retail business in Europe, investments in information systems and new store openings in North America.

In addition, we periodically evaluate strategic acquisitions and alliances and pursue those that we believe will support and contribute to our overall growth initiatives.

Credit Facilities

On July 6, 2011, the Company entered into a five-year senior secured revolving credit facility with JPMorgan Chase Bank, N.A., Bank of America, N.A. and the other lenders party thereto (the “Credit Facility”) which provided for a $200 millionrevolving multicurrency line of credit. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits. It may be used for working capital and other general corporate purposes.

On August 31, 2012, the Company increased its borrowing capacity under the Credit Facility from $200 million to $300 million by exercising the accordion feature in the Credit Facility pursuant to a Lender Joinder Agreement with the lenders party thereto. Also on August 31, 2012, the Company entered into an Amendment to the Credit Facility with the lenders party thereto to provide for (i) greater flexibility in certain of the Company’s covenants under the Credit Facility and (ii) access to a new $100 million accordion feature, subject to certain conditions and the willingness of existing or new lenders to assume such increased amount. As of August 2, 2014, the Company had $1.7 million in outstanding standby letters of credit, no outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility.

The Credit Facility requires the Company to comply with a leverage ratio and a fixed charge coverage ratio. In addition, the Credit Facility contains customary covenants, including covenants that limit or restrict the Company and its subsidiaries’ ability to: incur liens, incur indebtedness, make investments, dispose of assets, make certain restricted payments, merge or consolidate and enter into certain transactions with affiliates. The Credit Facility also limits the Company’s ability to pay dividends unless immediately after giving effect thereto the aggregate amount of unrestricted cash and cash equivalents held by Guess?, Inc. and its domestic subsidiaries is at least $50 million. The Company may need to borrow against this facility periodically to ensure it will continue to meet the requirements of this covenant. Upon the occurrence of an event of default under the Credit Facility, the lenders may cease making loans, terminate the Credit Facility and declare all amounts outstanding to be immediately due and payable. The Credit Facility specifies a number of events of default (some of which are subject to applicable grace or cure periods), including, among other things, non-payment defaults, covenant defaults, cross-defaults to other material indebtedness, bankruptcy and insolvency defaults and material judgment defaults. The Credit Facility allows for both secured and unsecured borrowings outside of the Credit Facility up to specified amounts.

The Company, through its European subsidiaries, maintains short-term uncommitted borrowing agreements, primarily for working capital purposes, with various banks in Europe. The majority of the borrowings under these agreements are secured by specific accounts receivable balances. Based on the applicable accounts receivable balances as of August 2, 2014, the Company could have borrowed up to $112.8 million under these agreements. As of August 2, 2014, the Company had no outstanding borrowings and $1.6 million in outstanding documentary letters of credit under these agreements. The agreements are denominated primarily in euros and provide for

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annual interest rates ranging from 0.5% to 3.0%. The maturities of any short-term borrowings under these arrangements are generally linked to the credit terms of the underlying accounts receivable that secure the borrowings. With the exception of one facility for up to $47.0 million that has a minimum net equity requirement, there are no other financial ratio covenants.

The Company entered into a capital lease in December 2005 for a building in Florence, Italy. As of August 2, 2014, the capital lease obligation was $7.3 million. The Company entered into a separate interest rate swap agreement designated as a non-hedging instrument that resulted in a swap fixed rate of 3.55%. This interest rate swap agreement matures in 2016 and converts the nature of the capital lease obligation from Euribor floating-rate debt to fixed-rate debt. The fair value of the interest rate swap liability as of August 2, 2014 was approximately $0.4 million.

From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations.

Share Repurchases

On March 14, 2011, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $250 millionof the Company’s common stock (the “2011 Share Repurchase Program”). On June 26, 2012, the Company’s Board of Directors authorized a new program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 millionof the Company’s common stock (the “2012 Share Repurchase Program”). The 2012 Share Repurchase Program was in addition to the 2011 Share Repurchase Program. Repurchases under programs may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under programs and programs may be discontinued at any time, without prior notice. There were noshare repurchases under the 2012 Share Repurchase Program during the six months ended August 2, 2014. During the six months ended August 3, 2013, theCompany repurchased 882,551 shares under the 2011 and 2012 Share Repurchase Programs at an aggregate cost of $22.1 million. All such share repurchases were made during the three months ended May 4, 2013. As of August 2, 2014, the Company had remaining authority under the 2012 Share Repurchase Program to purchase $495.8 million of its common stock and no remaining authority to purchase shares under the 2011 Share Repurchase Program.

Supplemental Executive Retirement Plan

On August 23, 2005, the Board of Directors of the Company adopted a Supplemental Executive Retirement Plan (“SERP”) which became effective January 1, 2006. The SERP provides select employees who satisfy certain eligibility requirements with certain benefits upon retirement, termination of employment, death, disability or a change in control of the Company, in certain prescribed circumstances. Paul Marciano, Chief Executive Officer and Vice Chairman of the Board, is the only active employee participating in the SERP.

As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made, and may continue to make, periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies may vary, depending on any changes to the estimates of final annual compensation levels and investment performance of the trust. The cash surrender values of the insurance policies were $53.6 million and $51.4 million as of August 2, 2014 and February 1, 2014, respectively, and were included in other assets in the Company’s condensed consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains of $0.7 million and $2.2 million in other income during the three and six months ended August 2, 2014, respectively, and unrealized gains of $1.1 million and $2.6 million in other income during the three and six months ended August 3, 2013, respectively.The projected benefit obligation was $55.6 million and $54.7 million as of August 2, 2014 and February 1, 2014, respectively, and was included in accrued expenses and other long-term liabilities in the Company’s condensed consolidated balance sheets depending on the expected timing of payments.SERP benefit payments of $0.3 million were made during the three and six months ended August 2, 2014.

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Inflation

The Company does not believe that inflation trends in the U.S. and internationally over the last three years have had a significant effect on net revenue or profitability.

Seasonality

The Company’s business is impacted by the general seasonal trends characteristic of the apparel and retail industries. The U.S., European and Canadian retail operations are generally stronger during the second half of the fiscal year, and the North American wholesale operations generally experience stronger performance from July through November. The European wholesale businesses operate with two primary selling seasons: the Spring/Summer season, which ships from November to April and the Fall/Winter season, which ships from May to October. The Company’s goal in the European wholesale business is to take advantage of early-season demand and potential reorders by offering a pre-collection assortment which ships at the beginning of each season. Customers retain the ability to request early shipment of backlog orders or delay shipment of orders depending on their needs.

Wholesale Backlog

We generally receive orders for fashion apparel three to six months prior to the time the products are delivered to our customers’ stores. The backlog of wholesale orders at any given time is affected by various factors, including seasonality, cancellations, the scheduling of market weeks, the timing of the receipt of orders and the timing of the shipment of orders and may include orders for multiple seasons. Accordingly, a comparison of backlogs of wholesale orders from period to period is not necessarily meaningful and may not be indicative of eventual actual shipments.

U.S. and Canada Backlog.Our U.S. and Canadian wholesale backlog as of August 30, 2014, consisting primarily of orders for fashion apparel, was $59.0 million, compared to $47.3 million in constant currency at August 31, 2013, an increase of 24.7%. We estimate that if we were to normalize the orders for the scheduling of market weeks the current backlog would have increased by 4.6% compared to the prior year.

Europe Backlog. As of August 31,2014, the European wholesale backlog was €229.4 million, compared to €230.8 million at September 3, 2013, a decrease of 0.6%. The backlog as of August 31,2014 is comprised of sales orders for the Fall/Winter 2014 and Spring/Summer 2015 seasons.

Application of Critical Accounting Policies

Our critical accounting policies reflecting our estimates and judgments are described in “Part II. Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended February 1, 2014 filed with the SEC on March 28, 2014. There have been no significant changes to our critical accounting policies during the six months ended August 2, 2014.

Recently Issued Accounting Guidance

In April 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which raises the threshold for disposals to qualify as discontinued operations. Under this new guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance is effective for fiscal periods beginning after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition

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that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements or related disclosures.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk.

Exchange Rate Risk

More than half of product sales and licensing revenue recorded for the six months ended August 2, 2014 were denominated in currencies other than the U.S. dollar. The Company’s primary exchange rate risk relates to operations in Europe, Canada and South Korea. Changes in currencies affect our earnings in various ways. For further discussion on currency related risk, please refer to our risk factors under “Part 1, Item 1A. Risk Factors” contained in the Company’s most recent Annual Report on Form 10-K for the fiscal year ended February 1, 2014.

Various transactions that occur primarily in Europe, Canada and South Korea are denominated in U.S. dollars and British pounds and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar denominated purchases of merchandise and U.S. dollar and British pound denominated intercompany liabilities. In addition, certain operating expenses and tax liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency. The Company is also subject to certain translation and economic exposures related to its net investment in certain of its international subsidiaries. The Company enters into derivative financial instruments to offset some but not all of its exchange risk. In addition, some of the derivative contracts in place will create volatility during the fiscal year as they are marked-to-market according to the accounting rules and may result in revaluation gains or losses in different periods from when the currency impact on the underlying transactions are realized.

Derivatives Designated as Hedging Instruments

Cash Flow Hedges

During the six months ended August 2, 2014, the Company purchased U.S. dollar forward contracts in Canada and Europe totaling US$40.4 million and US$38.2 million, respectively, to hedge forecasted merchandise purchases and intercompany royalties that were designated as cash flow hedges.As ofAugust 2, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$66.9 million and US$28.9 million, respectively, which are expected to mature over the next 13 months. The Company’s derivative financial instruments are recorded in its condensed consolidated balance sheet at fair value based on quoted market rates. Changes in the fair value of the U.S. dollar forward contracts, designated as cash flow hedges for forecasted merchandise purchases, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period which approximates the time the hedged merchandise inventory is sold. Changes in the fair value of the U.S. dollar forward contracts, designated as cash flow hedges for forecasted intercompany royalties, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income and expense in the period in which the royalty expense is incurred.

As of August 2, 2014, accumulated other comprehensive income (loss) included a net unrealized gainof approximately $0.4 million, net of tax, of which $0.3 million will be recognized in cost of product sales or other

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income over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values. As of August 2, 2014, the net unrealized gain of the remaining open forward contracts recorded in the Company’s condensed consolidated balance sheet was approximately $1.2 million.

At February 1, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$87.1 millionand US$15.2 million, respectively, that were designated as cash flow hedges. At February 1, 2014, the net unrealized gain of these open forward contracts recorded in the Company’s condensed consolidated balance sheet was approximately $0.3 million.

Derivatives Not Designated as Hedging Instruments

The Company also has foreign currency contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of foreign currency contracts not designated as hedging instruments are reported in net earnings as part of other income and expense. For the six months ended August 2, 2014, the Company recorded a net gain of $1.2 million for its euro foreign currency contracts not designated as hedges, which has been included in other income. As of August 2, 2014, the Company had euro foreign currency contracts to purchase US$109.4 millionexpected to mature over the next 13 months and Canadian dollar foreign currency contracts to purchase US$11.5 million expected to mature over the next four months. As of August 2, 2014, the net unrealized gain of these open forward contracts recorded in the Company’s condensed consolidated balance sheet was approximately $1.7 million.

At February 1, 2014, the Company had euro foreign currency contracts to purchase US$111.8 millionand Canadian dollar foreign currency contracts to purchase US$13.8 million. At February 1, 2014, the net unrealized gain of these open forward contracts recorded in the Company’s condensed consolidated balance sheet was approximately $0.1 million.

Sensitivity Analysis

As of August 2, 2014, a sensitivity analysis of changes in foreign currencies when measured against the U.S. dollar indicates that, if the U.S. dollar had uniformly weakened by 10% against all of the U.S. dollar denominated foreign exchange derivatives totaling US$216.7 million, the fair value of the instruments would have decreased by $24.1 million. Conversely, if the U.S. dollar uniformly strengthened by 10% against all of the U.S. dollar denominated foreign exchange derivatives, the fair value of these instruments would have increased by $19.7 million. Any resulting changes in the fair value of the hedged instruments may be partially offset by changes in the fair value of certain balance sheet positions (primarily U.S. dollar denominated liabilities in our foreign operations) impacted by the change in the foreign currency rate. The ability to reduce the exposure of currencies on earnings depends on the magnitude of the derivatives compared to the balance sheet positions during each reporting cycle.

Interest Rate Risk

As of August 2, 2014, approximately 84% of the Company’s total indebtedness related to a capital lease obligation, which is covered by a separate interest rate swap agreement with a swap fixed interest rate of 3.55% that matures in 2016. Changes in the related interest rate that result in an unrealized gain or loss on the fair value of the swap are reported in other income or expense. The change in the unrealized fair value of the interest swap increased other income, net by$0.1 million during the six months ended August 2, 2014. The majority of the Company’s remaining indebtedness is at variable rates of interest. Accordingly, changes in interest rates would impact the Company’s results of operations in future periods. A 100 basis point increase in interest rates would have had an insignificant effect on interest expense for the six months ended August 2, 2014.

The fair value of the Company’s debt instruments are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. As of August 2, 2014 and February 1, 2014, the carrying value of all financial instruments was not materially different from fair value, as the interest rate on the Company’s debt approximates rates currently available to the Company.

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ITEM 4. Controls and Procedures.

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the quarterly period covered by this report.

There was no change in our internal control over financial reporting during the second quarter of fiscal 2015, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

In May 2013, the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) issued an updated version of its Internal Control-Integrated Framework (“2013 framework”). The originally issued framework (“1992 framework”) remains available during the transition period, which extends to December 15, 2014, after which time the COSO will consider it superseded by the 2013 framework. As of August 2, 2014, the Company continued to utilize the 1992 framework and plans to transition to the 2013 framework during the fourth quarter of fiscal 2015. The Company does not expect significant changes to its overall internal control structure over financial reporting to result from the transition to the 2013 framework.

PART II.  OTHER INFORMATION

ITEM 1. Legal Proceedings.

Litigation

On May 6, 2009, Gucci America, Inc. filed a complaint in the U.S. District Court for the Southern District of New York against Guess?, Inc. and certain third-party licensees for the Company asserting, among other things, trademark and trade dress law violations and unfair competition. The complaint sought injunctive relief, compensatory damages, including treble damages, and certain other relief. Complaints similar to those in the above action have also been filed by Gucci entities against the Company and certain of its subsidiaries in the Court of Milan, Italy, the Court of Paris, France and the Intermediate People’s Court of Nanjing, China. The three week bench trial in the U.S. matter concluded on April 19, 2012, with the court issuing a preliminary ruling on May 21, 2012 and a final ruling on July 19, 2012. Although the plaintiff was seeking compensation in the U.S. matter in the form of damages of $26 million and an accounting of profits of $99 million, the final ruling provided for monetary damages of $2.3 million against the Company and $2.3 million against certain of its licensees. The court also granted narrow injunctions in favor of the plaintiff for certain of the claimed infringements. On August 20, 2012, the appeal period expired without any party having filed an appeal, rendering the judgment final.On May 2, 2013, the Court of Milan ruled in favor of the Company in the Milan, Italy matter. In the ruling, the Court rejected all of the plaintiff’s claims and ordered the cancellation of three of the plaintiff’s Italian and four of the plaintiff’s European Community trademark registrations. On June 10, 2013, the plaintiff appealed the Court’s ruling in the Milan matter. In the China matter, the Intermediate People’s Court of Nanjing, China issued a ruling on November 8, 2013 granting an injunction in favor of the plaintiff for certain of the claimed infringements on handbags and small leather goods and awarding the plaintiff statutory damages in the amount of approximately$80,000. The Company strongly disagrees with the Court’s decision and has appealed the ruling. The judgment in the China matter is stayed pending the appeal, which was heard in May 2014. The France matter in the Court of Paris is currently scheduled to be heard in September 2014.

On August 25, 2006, Franchez Isaguirre, a former employee of the Company, filed a complaint in the Superior Court of California, County of Los Angeles alleging violations by the Company of California wage and hour laws. The complaint was subsequently amended, adding a second former employee as an additional named party. The plaintiffs purport to represent a class of similarly situated employees in California who allegedly had been injured by not being provided adequate meal and rest breaks. The complaint seeks unspecified compensatory damages, statutory penalties, attorney’s fees and injunctive and declaratory relief. On June 9, 2009, the Court certified the class but immediately stayed the case pending the resolution of a separate California Supreme Court case on the standards of class treatment for meal and rest break claims. Following the Supreme Court ruling, the

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Superior Court denied the Company’s motions to decertify the class and to narrow the class in January 2013 and June 2013, respectively. The Company subsequently petitioned to have the Court’s decision not to narrow the class definition reviewed. That petition was ultimately denied by the California Supreme Court in April 2014. No trial date has been set.

Although the Company believes that it has a strong position and will continue to vigorously defend each of these remaining matters, it is unable to predict with certainty whether or not these efforts will ultimately be successful or whether the outcomes will have a material impact on the Company’s financial position or results of operations.

The Company is also involved in various other claims and other matters incidental to the Company’s business, the resolution of which is not expected to have a material adverse effect on the Company’s financial position or results of operations. No material amounts were accrued as of August 2, 2014 or February 1, 2014 related to any of the Company’s legal proceedings.

ITEM 1A. Risk Factors.

There have not been any material changes from the Risk Factors as previously disclosed in our Annual Report on Form 10-K for the year ended February 1, 2014, filed with the SEC on March 28, 2014.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Items (a) and (b) are not applicable.

Item (c).  Issuer Purchases of Equity Securities

Period	Total  Number of Shares Purchased	Average  Price Paid per Share		Total Number of  Shares Purchased as Part of Publicly  Announced Plans or Programs	Maximum Number  (or Approximate  Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs
May 4, 2014 to May 31, 2014
Repurchase program(1)	—	—		—	$	495,786,484
Employee transactions(2)	1,878	$	26.95	—	—
June 1, 2014 to July 5, 2014
Repurchase program(1)	—	—		—	$	495,786,484
Employee transactions(2)	18,847	$	26.53	—	—
July 6, 2014 to August 2, 2014
Repurchase program(1)	—	—		—	$	495,786,484
Employee transactions(2)	252	$	26.90	—	—
Total
Repurchase program(1)	—	—		—
Employee transactions(2)	20,977	$	26.57	—

________________________________

(1)  On June 26, 2012, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 million of the Company’s common stock. Repurchases under the program may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under the program, which may be discontinued at any time, without prior notice.

(2)  Consists of shares surrendered to, or withheld by, the Company in satisfaction of employee tax withholding obligations that occur upon vesting of restricted stock awards/units granted under the Company’s 2004 Equity Incentive Plan, as amended.

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ITEM 6. Exhibits.

Exhibit Number	Description
3.1.	Restated Certificate of Incorporation of the Registrant (incorporated by reference from Amendment No. 3 to the Registrant’s Registration Statement on Form S-1 (Registration No. 333-4419) filed July 30, 1996).
3.2.	Second Amended and Restated Bylaws of the Registrant (incorporated by reference from the Registrant’s Current Report on Form 8-K filed December 4, 2007).
4.1.	Specimen Stock Certificate (incorporated by reference from Amendment No. 3 to the Registrant’s Registration Statement on Form S-1 (Registration No. 333-4419) filed July 30, 1996).
†31.1.	Certification of Chief Executive Officer and Vice Chairman of the Board pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
†31.2.	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
†32.1.	Certification of Chief Executive Officer and Vice Chairman of the Board pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
†32.2.	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
†101.INS	XBRL Instance Document
†101.SCH	XBRL Taxonomy Extension Schema Document
†101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
†101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
†101.LAB	XBRL Taxonomy Extension Label Linkbase Document
†101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

_______________________________________________________________________________

† Filed herewith

46

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		Guess?, Inc.
Date:	September 5, 2014	By:	/s/ PAUL MARCIANO
			Paul Marciano
			Chief Executive Officer and Vice Chairman of the Board
Date:	September 5, 2014	By:	/s/ SANDEEP REDDY
			Sandeep Reddy
			Chief Financial Officer
			(Principal Financial Officer)

47

EX-31.1

Exhibit 31.1

I, Paul Marciano, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Guess?, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	September 5, 2014	By:	/s/ PAUL MARCIANO
			Paul Marciano Chief Executive Officer and Vice Chairman of the Board

EX-31.2

Exhibit 31.2

I, Sandeep Reddy, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Guess?, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	September 5, 2014	By:	/s/ SANDEEP REDDY
			Sandeep Reddy Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 

18 U.S.C. SECTION 1350 

AS ADOPTED PURSUANT TO SECTION 906 

OF THE SARBANES-OXLEY ACT OF 2002

I, Paul Marciano, Chief Executive Officer and Vice Chairman of the Board of Guess?, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

• the Quarterly Report on Form 10-Q of the Company for the period ended August 2, 2014, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

• the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	September 5, 2014	By:	/s/ PAUL MARCIANO
			Paul Marciano Chief Executive Officer and Vice Chairman of the Board

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906 

OF THE SARBANES-OXLEY ACT OF 2002

I, Sandeep Reddy, Chief Financial Officer of Guess?, Inc. (the “Company”), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

• the Quarterly Report on Form 10-Q of the Company for the period ended August 2, 2014, as filed with the Securities and Exchange Commission (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

• the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. 

Date:	September 5, 2014	By:	/s/ SANDEEP REDDY
			Sandeep Reddy Chief Financial Officer

XML

Stockholders' Equity and Redeemable Noncontrolling Interests (Details 2) (USD $)	6 Months Ended	12 Months Ended
	Aug. 02, 2014	Feb. 01, 2014
Redeemable noncontrolling interests reconciliation
Redeemable noncontrolling interest, redemption value at the beginning of the period	$ 5,830,000	$ 3,144,000
Foreign currency translation adjustment	65,000	(104,000)
Redeemable noncontrolling interest capital contribution		1,199,000
Redeemable noncontrolling interest redemption value adjustment	(427,000)	1,591,000
Redeemable noncontrolling interest, redemption value at the end of the period	5,468,000	5,830,000
Redeemable noncontrolling interests put arrangements
Redeemable noncontrolling interests	5,468,000	5,830,000
Guess Sud
Redeemable noncontrolling interests reconciliation
Redeemable noncontrolling interest, redemption value at the beginning of the period	4,700,000
Redeemable noncontrolling interest, redemption value at the end of the period	4,300,000
Redeemable noncontrolling interests put arrangements
Redeemable noncontrolling interests	4,300,000
Total outstanding equity interest in subsidiary covered by put arrangement (as a percent)	40.00%
Initial date put option can be exercised by noncontrolling owners	Jan. 30, 2012
Guess Brazil
Redeemable noncontrolling interests reconciliation
Redeemable noncontrolling interest, redemption value at the beginning of the period	1,100,000
Redeemable noncontrolling interest, redemption value at the end of the period	1,200,000	1,100,000
Redeemable noncontrolling interests put arrangements
Redeemable noncontrolling interests	1,200,000	1,100,000
Payments to acquire controlling interest in joint venture		$ 1,800,000
Controlling interest in joint venture held by the Company	60.00%
Initial date put option can be exercised by noncontrolling owners (by year)	2020
Period put arrangement can be exercised by noncontrolling interest holder after initial and subsequent exercise periods	3 years

XML

Fair Value Measurements (Details 2) (USD $)	3 Months Ended	6 Months Ended
	May 03, 2014	Aug. 02, 2014	Feb. 01, 2014
Available-for-sale securities
Accumulated unrealized gains, net of tax, included in accumulated other comprehensive income (loss)			$ 103,000
Corporate bonds
Available-for-sale securities
Available-for-sale securities, included in short-term investments and other assets depending on their respective maturity dates		5,000,000	5,100,000
Maturity date		Sep. 30, 2014
Marketable equity securities
Available-for-sale securities
Available-for-sale securities, included in short-term investments and other assets depending on their respective maturity dates		100,000	600,000
Proceeds from sale of available-for-sale securities	598,000	598,000
Marketable equity securities | Other income/expense
Available-for-sale securities
Gains recognized on sale of available-for-sale securities	$ 100,000	$ 100,000

XML

Share-Based Compensation (Details) (USD $)	3 Months Ended		6 Months Ended		0 Months Ended		3 Months Ended		6 Months Ended		0 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended		6 Months Ended		0 Months Ended					0 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013	Apr. 02, 2014 Stock option	Apr. 03, 2013 Stock option	Aug. 02, 2014 Stock option	Aug. 03, 2013 Stock option	Aug. 02, 2014 Stock option	Aug. 03, 2013 Stock option	Apr. 02, 2014 Nonvested stock awards or units	Apr. 03, 2013 Nonvested stock awards or units	Aug. 02, 2014 Nonvested stock awards or units	Aug. 03, 2013 Nonvested stock awards or units	Aug. 02, 2014 Nonvested stock awards or units	Aug. 03, 2013 Nonvested stock awards or units	Aug. 02, 2014 Employee Stock Purchase Plan	Aug. 03, 2013 Employee Stock Purchase Plan	Aug. 02, 2014 Employee Stock Purchase Plan	Aug. 03, 2013 Employee Stock Purchase Plan	Apr. 08, 2014 Performance awards/units Paul Marciano	Jul. 11, 2013 Performance awards/units Paul Marciano	Apr. 08, 2014 Target performance awards/units Paul Marciano	Jul. 11, 2013 Target performance awards/units Paul Marciano	Aug. 02, 2014 Target performance awards/units Paul Marciano	Apr. 08, 2014 Target performance awards/units Paul Marciano Minimum	Apr. 08, 2014 Target performance awards/units Paul Marciano Maximum
Disclosure of share-based compensation information under stock plans
Share-based compensation expense	$ 4,156,000	$ 3,751,000	$ 7,613,000	$ 5,999,000			$ 620,000	$ 684,000	$ 1,076,000	$ 1,257,000			$ 3,439,000	$ 2,994,000	$ 6,377,000	$ 4,599,000	$ 97,000	$ 73,000	$ 160,000	$ 143,000
Share-Based Compensation, Additional Disclosures
Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options/awards/units							$ 4,500,000		$ 4,500,000				$ 23,900,000		$ 23,900,000
Weighted average period for recognition of unrecognized compensation cost (in years/months/days)							1 year 8 months 7 days		1 year 8 months 7 days				1 year 8 months 7 days		1 year 8 months 7 days
Weighted average fair values of stock options granted during the period (in dollars per share)									$ 6.23	$ 6.05
Granted (in shares)					365,600	416,500
Nonvested stock awards or units granted (in shares)											301,200	408,400									100,000	100,000	159,700	143,700
Period which award is subject to a performance condition																					1 year	9 months	1 year	9 months
Percentage of target performance shares expected to vest based on the achievement of certain performance-based conditions																									84.00%
Percentage of shares that will ultimately vest subject to performance condition																										0.00%	150.00%
Initial vesting period during first fiscal year of grant																					10 months	7 months
Vesting period																					2 years	2 years
Vesting date																							Jan. 31, 2017	Feb. 01, 2016

XML

Fair Value Measurements (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Asset impairment charge
Period of time new stores would need to be opened to be considered for impairment			1 year
Selling, general and administrative expenses | North American Retail and Europe
Asset impairment charge
Charges related to asset impairments	$ 4.6	$ 2.1	$ 4.8	$ 3.1

XML

Segment Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014 segment	Aug. 03, 2013	Feb. 01, 2014
Segment information of net revenue, earnings (loss) from operations
Number of reportable segments			5
Net revenue	$ 608,571	$ 639,012	$ 1,131,112	$ 1,187,926
Licensing	26,792	27,118	52,405	57,368
Restructuring charges	0	(6,129)	0	(8,466)	(12,442)
Earnings (loss) from operations	29,858	60,780	27,881	72,105
Corporate Overhead
Segment information of net revenue, earnings (loss) from operations
Earnings (loss) from operations	(22,333)	(21,374)	(43,106)	(40,078)
Restructuring Charges
Segment information of net revenue, earnings (loss) from operations
Restructuring charges	0	(6,129)	0	(8,466)
North American Retail
Segment information of net revenue, earnings (loss) from operations
Net revenue	244,000	254,313	472,344	492,624
Earnings (loss) from operations	(4,662)	10,390	(13,061)	6,157
Europe
Segment information of net revenue, earnings (loss) from operations
Net revenue	235,260	250,372	394,418	415,764
Earnings (loss) from operations	24,513	39,275	17,881	34,057
Asia
Segment information of net revenue, earnings (loss) from operations
Net revenue	64,267	65,852	134,385	136,984
Earnings (loss) from operations	2,264	5,039	5,617	12,003
North American Wholesale
Segment information of net revenue, earnings (loss) from operations
Net revenue	38,252	41,357	77,560	85,186
Earnings (loss) from operations	5,167	8,478	12,920	17,127
Licensing
Segment information of net revenue, earnings (loss) from operations
Licensing	26,792	27,118	52,405	57,368
Earnings (loss) from operations	$ 24,909	$ 25,101	$ 47,630	$ 51,305

XML

Fair Value Measurements (Tables)

6 Months Ended

Aug. 02, 2014

Fair Value Disclosures [Abstract]

Schedule of fair value hierarchy for assets and liabilities measured at fair value on a recurring basis

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of August 2, 2014 and February 1, 2014 (in thousands):

	Fair Value Measurements at Aug 2, 2014								Fair Value Measurements at Feb 1, 2014
Recurring Fair Value Measures	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange currency contracts	$	—	$	3,248	$	—	$	3,248	$	—	$	2,116	$	—	$	2,116
Available-for-sale securities	5,066		—		—		5,066		5,732		—		—		5,732
Total	$	5,066	$	3,248	$	—	$	8,314	$	5,732	$	2,116	$	—	$	7,848
Liabilities:
Foreign exchange currency contracts	$	—	$	342	$	—	$	342	$	—	$	1,712	$	—	$	1,712
Interest rate swap	—		440		—		440		—		581		—		581
Deferred compensation obligations	—		8,305		—		8,305		—		7,498		—		7,498
Total	$	—	$	9,087	$	—	$	9,087	$	—	$	9,791	$	—	$	9,791

XML

Derivative Financial Instruments (Details 2) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Aug. 02, 2014	Feb. 01, 2014
Forward contracts designated as hedging instruments
Foreign exchange currency cash flow hedge unrealized gain to be recognized in cost of product sales or other income over the following 12 months	$ 0.3
Cash flow hedges | Canada
Forward contracts designated as hedging instruments
U.S. dollar forward contracts purchased, total notional amount	40.4
U.S. dollar forward contracts outstanding	28.9	15.2
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months)	13 months
Cash flow hedges | Europe
Forward contracts designated as hedging instruments
U.S. dollar forward contracts purchased, total notional amount	38.2
U.S. dollar forward contracts outstanding	$ 66.9	$ 87.1
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months)	13 months

XML

Stockholders' Equity and Redeemable Noncontrolling Interests (Tables)

6 Months Ended

Aug. 02, 2014

Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract]

Reconciliation of the total carrying amount of total stockholders' equity, Guess, Inc. stockholders' equity and stockholders' equity attributable to nonredeemable and redeemable noncontrolling interests

A reconciliation of the total carrying amount of total stockholders’ equity, Guess?, Inc. stockholders’ equity and stockholders’ equity attributable to nonredeemable and redeemable noncontrolling interests for the fiscal year ended February 1, 2014 and six months ended August 2, 2014 is as follows (in thousands):

	Stockholders’ Equity
	Guess?, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total			Redeemable Noncontrolling Interests
Balance at February 2, 2013	$	1,086,992		$	13,876		$	1,100,868		$	3,144
Net earnings	153,434			4,277			157,711			—
Foreign currency translation adjustment	(17,621		)	(804		)	(18,425		)	(104		)
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($237)	1,669			—			1,669			—
Loss on marketable securities, net of income tax of $4	(7		)	—			(7		)	—
SERP plan amendment, prior service cost amortization and actuarial valuation gain (loss) and related amortization, net of income tax of ($2,963)	4,619			—			4,619			—
Issuance of common stock under stock compensation plans, net of tax effect	2,404			—			2,404			—
Issuance of stock under Employee Stock Purchase Plan	980			—			980			—
Share-based compensation	13,949			—			13,949			—
Dividends	(68,215		)	—			(68,215		)	—
Share repurchases	(22,099		)	—			(22,099		)	—
Noncontrolling interest capital contribution	—			—			—			1,199
Noncontrolling interest capital distribution	—			(1,877		)	(1,877		)	—
Redeemable noncontrolling interest redemption value adjustment	(1,591		)	—			(1,591		)	1,591
Balance at February 1, 2014	$	1,154,514		$	15,472		$	1,169,986		$	5,830
Netearnings	19,853			232			20,085			—
Foreign currency translation adjustment	2,425			117			2,542			65
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of $476	479			—			479			—
Loss on marketable securities, net of income tax of $58	(95		)	—			(95		)	—
SERP prior service credit and actuarial valuation amortization, net of income tax of ($135)	218			—			218			—
Issuance of common stock under stock compensation plans, net of tax effect	(93		)	—			(93		)	—
Issuance of stock under Employee Stock Purchase Plan	635			—			635			—
Share-based compensation	7,613			—			7,613			—
Dividends	(38,486		)	—			(38,486		)	—
Redeemable noncontrolling interest redemption value adjustment	427			—			427			(427		)
Balance at August 2, 2014	$	1,147,490		$	15,821		$	1,163,311		$	5,468

Schedule of changes in accumulated other comprehensive income (loss)

The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands):

	Three Months Ended Aug 2, 2014
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at May 3, 2014	$	14,846		$	(1,667	)	$	33		$	(6,679	)	$	6,533
Gains (losses) arising during the period	(19,424		)	1,352			(25		)	—			(18,097		)
Reclassification to net earnings for losses realized	—			681			—			109			790
Net other comprehensive income (loss)	(19,424		)	2,033			(25		)	109			(17,307		)
Balance at August 2, 2014	$	(4,578	)	$	366		$	8		$	(6,570	)	$	(10,774	)

	Six Months Ended Aug 2, 2014
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at February 1, 2014	$	(7,003	)	$	(113	)	$	103		$	(6,788	)	$	(13,801	)
Gains (losses) arising during the period	2,425			(706		)	(41		)	—			1,678
Reclassification to net earnings for (gains) losses realized	—			1,185			(54		)	218			1,349
Net other comprehensive income (loss)	2,425			479			(95		)	218			3,027
Balance at August 2, 2014	$	(4,578	)	$	366		$	8		$	(6,570	)	$	(10,774	)

	Three Months Ended Aug 3, 2013
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at May 4, 2013	$	(14,148	)	$	1,918		$	169		$	(11,140	)	$	(23,201	)
Gains (losses) arising during the period	2,951			64			(81		)	2,796			5,730
Reclassification to net earnings for (gains) losses realized	—			(424		)	—			268			(156		)
Net other comprehensive income (loss)	2,951			(360		)	(81		)	3,064			5,574
Balance at August 3, 2013	$	(11,197	)	$	1,558		$	88		$	(8,076	)	$	(17,627	)

	Six Months Ended Aug 3, 2013
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at February 2, 2013	$	10,618		$	(1,782	)	$	110		$	(11,407	)	$	(2,461	)
Gains (losses) arising during the period	(21,815		)	4,152			(22		)	2,796			(14,889		)
Reclassification to net earnings for (gains) losses realized	—			(812		)	—			535			(277		)
Net other comprehensive income (loss)	(21,815		)	3,340			(22		)	3,331			(15,166		)
Balance at August 3, 2013	$	(11,197	)	$	1,558		$	88		$	(8,076	)	$	(17,627	)

Reclassifications out of accumulated other comprehensive income (loss)

Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands):

	Three Months Ended						Six Months Ended						Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Derivative financial instruments designated as cash flow hedges:
Foreign exchange currency contracts	$	265		$	(393	)	$	759		$	(872	)	Cost of sales
Foreign exchange currency contracts	25			(115		)	56			(94		)	Other income/expense
Less income tax effect	391			84			370			154			Income tax expense
	681			(424		)	1,185			(812		)
Marketable securities:
Available-for-sale securities	—			—			(87		)	—			Other income/expense
Less income tax effect	—			—			33			—			Income tax expense
	—			—			(54		)	—
SERP:
Actuarial loss amortization	235			277			469			554			(1)
Prior service (credit) cost amortization	(58		)	156			(116		)	311			(1)
Less income tax effect	(68		)	(165		)	(135		)	(330		)	Income tax expense
	109			268			218			535
Total reclassifications during the period	$	790		$	(156	)	$	1,349		$	(277	)

__________________________________

(1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 13 for further information.

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Commitments and Contingencies (Details)	6 Months Ended		1 Months Ended	6 Months Ended
	Aug. 02, 2014 Property leases	Aug. 02, 2014 Equipment operating leases	Mar. 31, 2014 U.S. distribution center lease	Aug. 02, 2014 Retail store leases Minimum	Aug. 02, 2014 Retail store leases Maximum
Leases
Percentage of annual sales volume used for incremental rent on certain retail store leases				2.00%	12.00%
Lease expiration date	Sep. 30, 2031	Dec. 30, 2018
Lease renewal term			10 years
Lease expiration date by year			2024
Number of extension options available			2
Terms for extension options			5 years

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Accounts Receivable (Details) (USD $) In Thousands, unless otherwise specified	Aug. 02, 2014	Feb. 01, 2014
Accounts receivable
Accounts receivable, gross	$ 272,247	$ 315,957
Less allowance for doubtful accounts	38,341	39,392
Accounts receivable, net	233,906	276,565
Trade receivables
Accounts receivable
Accounts receivable, gross	258,446	291,411
Royalty receivables
Accounts receivable
Accounts receivable, gross	8,629	16,372
Other receivables
Accounts receivable
Accounts receivable, gross	$ 5,172	$ 8,174

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Earnings Per Share (Details 2) (USD $)	6 Months Ended	0 Months Ended	3 Months Ended	6 Months Ended	0 Months Ended			3 Months Ended	6 Months Ended
	Aug. 02, 2014 Share Repurchase Program 2011 Common Stock	Mar. 14, 2011 Share Repurchase Program 2011 Common Stock Maximum	Aug. 02, 2014 Share Repurchase Program 2012 Common Stock	Aug. 02, 2014 Share Repurchase Program 2012 Common Stock	Jun. 26, 2012 Share Repurchase Program 2012 Common Stock Maximum	Aug. 02, 2014 Share Repurchase Program 2011 and 2012 Maximum	Aug. 02, 2014 Share Repurchase Program 2011 and 2012 Minimum	May 04, 2013 Share Repurchase Program 2011 and 2012 Common Stock	Aug. 03, 2013 Share Repurchase Program 2011 and 2012 Common Stock
Share Repurchase Program
Value of common stock authorized to be repurchased		$ 250,000,000			$ 500,000,000
Number of shares authorized to be repurchased						0	0
Number of common stock repurchased (in shares)			0	0				882,551	882,551
Shares repurchased, aggregate cost			0	0				22,100,000	22,100,000
Value of common stock remaining to be repurchased	$ 0			$ 495,800,000

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Supplemental Executive Retirement Plan (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013	Feb. 01, 2014
Supplemental Executive Retirement Plan
Impact of plan amendment on projected benefit obligation and unrecognized prior service cost					$ 4,500,000
SERP benefit payments	300,000		300,000
Components of net periodic pension cost
Interest cost	572,000	586,000	1,144,000	1,172,000
Net amortization of unrecognized prior service (credit) cost	(58,000)	156,000	(116,000)	311,000
Net amortization of actuarial losses	235,000	277,000	469,000	554,000
Net periodic defined benefit pension cost	749,000	1,019,000	1,497,000	2,037,000
Other income/expense
Supplemental Executive Retirement Plan
Gain as a result of the change in value of the insurance policy investments, included in other income and expense	700,000	1,100,000	2,200,000	2,600,000
Other assets
Supplemental Executive Retirement Plan
Cash surrender values of the insurance policies held in a rabbi trust	53,600,000		53,600,000		51,400,000
Accrued expenses and other long-term liabilities
Supplemental Executive Retirement Plan
Projected benefit obligation	$ 55,600,000		$ 55,600,000		$ 54,700,000

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Borrowings and Capital Lease Obligations (Details) (USD $)			6 Months Ended	0 Months Ended				6 Months Ended
	Aug. 02, 2014	Feb. 01, 2014	Aug. 02, 2014 European capital lease, maturing quarterly through 2016 Italy	Jul. 06, 2011 Credit Facility	Aug. 02, 2014 Credit Facility	Aug. 31, 2012 Credit Facility	Jul. 06, 2011 Credit Facility	Aug. 02, 2014 Short-term borrowing Europe facility
Borrowings and capital lease obligations
European capital lease, maturing quarterly through 2016	$ 7,294,000	$ 8,637,000	$ 7,294,000
Other	1,438,000	3,103,000
Borrowings and capital lease obligations, total	8,732,000	11,740,000
Less current installments	1,997,000	4,160,000
Long-term capital lease obligations and other debt	6,735,000	7,580,000
Capital Lease
Fixed rate of interest rate swap designated as non-hedging instruments (as a percent)			3.55%
Interest rate swap maturity date (by year)			2016
Fair value of interest rate swap liability			400,000
Credit Facilities
Debt maturity period (in years)				5 years
Maximum borrowing capacity					300,000,000	300,000,000	200,000,000	112,800,000
Sublimit on the amount of incremental revolving commitments and incremental term loans					100,000,000	100,000,000
Letters of credit outstanding					1,700,000
Documentary letters of credit outstanding amount					0			1,600,000
Credit Facility, outstanding amount					0			0
Interest rate, low end of the range (as a percent)								0.50%
Interest rate, high end of the range (as a percent)								3.00%
Maximum borrowing capacity of the credit facility which is subject to a minimum net equity requirement								$ 47,000,000
Number of credit facilities subject to minimum net equity requirement								1

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Stockholders' Equity and Redeemable Noncontrolling Interests

6 Months Ended

Aug. 02, 2014

Stockholders' Equity and Redeemable Noncontrolling Interests [Abstract]

Stockholders' Equity and Redeemable Noncontrolling Interests

Stockholders’ Equity and Redeemable Noncontrolling Interests

A reconciliation of the total carrying amount of total stockholders’ equity, Guess?, Inc. stockholders’ equity and stockholders’ equity attributable to nonredeemable and redeemable noncontrolling interests for the fiscal year ended February 1, 2014 and six months ended August 2, 2014 is as follows (in thousands):

	Stockholders’ Equity
	Guess?, Inc. Stockholders’ Equity			Nonredeemable Noncontrolling Interests			Total			Redeemable Noncontrolling Interests
Balance at February 2, 2013	$	1,086,992		$	13,876		$	1,100,868		$	3,144
Net earnings	153,434			4,277			157,711			—
Foreign currency translation adjustment	(17,621		)	(804		)	(18,425		)	(104		)
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($237)	1,669			—			1,669			—
Loss on marketable securities, net of income tax of $4	(7		)	—			(7		)	—
SERP plan amendment, prior service cost amortization and actuarial valuation gain (loss) and related amortization, net of income tax of ($2,963)	4,619			—			4,619			—
Issuance of common stock under stock compensation plans, net of tax effect	2,404			—			2,404			—
Issuance of stock under Employee Stock Purchase Plan	980			—			980			—
Share-based compensation	13,949			—			13,949			—
Dividends	(68,215		)	—			(68,215		)	—
Share repurchases	(22,099		)	—			(22,099		)	—
Noncontrolling interest capital contribution	—			—			—			1,199
Noncontrolling interest capital distribution	—			(1,877		)	(1,877		)	—
Redeemable noncontrolling interest redemption value adjustment	(1,591		)	—			(1,591		)	1,591
Balance at February 1, 2014	$	1,154,514		$	15,472		$	1,169,986		$	5,830
Netearnings	19,853			232			20,085			—
Foreign currency translation adjustment	2,425			117			2,542			65
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of $476	479			—			479			—
Loss on marketable securities, net of income tax of $58	(95		)	—			(95		)	—
SERP prior service credit and actuarial valuation amortization, net of income tax of ($135)	218			—			218			—
Issuance of common stock under stock compensation plans, net of tax effect	(93		)	—			(93		)	—
Issuance of stock under Employee Stock Purchase Plan	635			—			635			—
Share-based compensation	7,613			—			7,613			—
Dividends	(38,486		)	—			(38,486		)	—
Redeemable noncontrolling interest redemption value adjustment	427			—			427			(427		)
Balance at August 2, 2014	$	1,147,490		$	15,821		$	1,163,311		$	5,468

Accumulated Other Comprehensive Income (Loss)

The changes in accumulated other comprehensive income (loss), net of related income taxes, for the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands):

	Three Months Ended Aug 2, 2014
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at May 3, 2014	$	14,846		$	(1,667	)	$	33		$	(6,679	)	$	6,533
Gains (losses) arising during the period	(19,424		)	1,352			(25		)	—			(18,097		)
Reclassification to net earnings for losses realized	—			681			—			109			790
Net other comprehensive income (loss)	(19,424		)	2,033			(25		)	109			(17,307		)
Balance at August 2, 2014	$	(4,578	)	$	366		$	8		$	(6,570	)	$	(10,774	)

	Six Months Ended Aug 2, 2014
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at February 1, 2014	$	(7,003	)	$	(113	)	$	103		$	(6,788	)	$	(13,801	)
Gains (losses) arising during the period	2,425			(706		)	(41		)	—			1,678
Reclassification to net earnings for (gains) losses realized	—			1,185			(54		)	218			1,349
Net other comprehensive income (loss)	2,425			479			(95		)	218			3,027
Balance at August 2, 2014	$	(4,578	)	$	366		$	8		$	(6,570	)	$	(10,774	)

	Three Months Ended Aug 3, 2013
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at May 4, 2013	$	(14,148	)	$	1,918		$	169		$	(11,140	)	$	(23,201	)
Gains (losses) arising during the period	2,951			64			(81		)	2,796			5,730
Reclassification to net earnings for (gains) losses realized	—			(424		)	—			268			(156		)
Net other comprehensive income (loss)	2,951			(360		)	(81		)	3,064			5,574
Balance at August 3, 2013	$	(11,197	)	$	1,558		$	88		$	(8,076	)	$	(17,627	)

	Six Months Ended Aug 3, 2013
	Foreign Currency Translation Adjustment			Derivative Financial Instruments Designated as Cash Flow Hedges			Marketable Securities			SERP			Total
Balance at February 2, 2013	$	10,618		$	(1,782	)	$	110		$	(11,407	)	$	(2,461	)
Gains (losses) arising during the period	(21,815		)	4,152			(22		)	2,796			(14,889		)
Reclassification to net earnings for (gains) losses realized	—			(812		)	—			535			(277		)
Net other comprehensive income (loss)	(21,815		)	3,340			(22		)	3,331			(15,166		)
Balance at August 3, 2013	$	(11,197	)	$	1,558		$	88		$	(8,076	)	$	(17,627	)

Details on reclassifications out of accumulated other comprehensive income (loss) to net earnings during the three and six months ended August 2, 2014 and August 3, 2013 are as follows (in thousands):

	Three Months Ended						Six Months Ended						Location of (Gain) Loss Reclassified from Accumulated OCI into Earnings
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Derivative financial instruments designated as cash flow hedges:
Foreign exchange currency contracts	$	265		$	(393	)	$	759		$	(872	)	Cost of sales
Foreign exchange currency contracts	25			(115		)	56			(94		)	Other income/expense
Less income tax effect	391			84			370			154			Income tax expense
	681			(424		)	1,185			(812		)
Marketable securities:
Available-for-sale securities	—			—			(87		)	—			Other income/expense
Less income tax effect	—			—			33			—			Income tax expense
	—			—			(54		)	—
SERP:
Actuarial loss amortization	235			277			469			554			(1)
Prior service (credit) cost amortization	(58		)	156			(116		)	311			(1)
Less income tax effect	(68		)	(165		)	(135		)	(330		)	Income tax expense
	109			268			218			535
Total reclassifications during the period	$	790		$	(156	)	$	1,349		$	(277	)

__________________________________

(1) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 13 for further information.

Redeemable Noncontrolling Interests

The Company is party to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest from the acquisition of its majority-owned subsidiary, Guess Sud SAS (“Guess Sud”). The put arrangement for Guess Sud, representing 40% of the total outstanding equity interest of that subsidiary, may be exercised at the discretion of the noncontrolling interest holders by providing written notice to the Company any time after January 30, 2012. The put arrangement is recorded on the balance sheet at its expected redemption value based on a method which approximates fair value and classified as a redeemable noncontrolling interest outside of permanent equity. The redemption value of the Guess Sud redeemable put arrangement was $4.3 million and $4.7 million at August 2, 2014 and February 1, 2014, respectively.

During fiscal 2014, the Company entered into a majority-owned joint venture to establish Guess Brasil Comércio e Distribuição S.A. (“Guess Brazil”). The Company funded $1.8 million to obtain a 60% interest in Guess Brazil and is subject to a put arrangement with respect to the common securities that represent the remaining noncontrolling interest. The put arrangement may be exercised at the discretion of the noncontrolling interest holder by providing written notice to the Company beginning in fiscal 2020, or sooner in certain limited circumstances, and every third anniversary thereafter subject to certain time restrictions. The redemption value of the Guess Brazil put arrangement is based on a multiple of Guess Brazil’s earnings before interest, taxes, depreciation and amortization subject to certain adjustments. The redemption value of the Guess Brazil redeemable put arrangement was $1.2 million and $1.1 million at August 2, 2014 and February 1, 2014, respectively.

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Inventories (Details) (USD $)	Aug. 02, 2014	Feb. 01, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 14,778,000	$ 10,585,000
Work in progress	175,000	977,000
Finished goods	377,434,000	339,337,000
Inventories	392,387,000	350,899,000
Allowance to write-down inventories to lower of cost or market value, amount	$ 21,800,000	$ 23,400,000

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Segment Information (Tables)

6 Months Ended

Aug. 02, 2014

Segment Reporting [Abstract]

Summary of net revenue and earnings (loss) from operations

Net revenue and earnings (loss) from operations are summarized as follows for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands):

	Three Months Ended						Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Net revenue:
North American Retail	$	244,000		$	254,313		$	472,344		$	492,624
Europe	235,260			250,372			394,418			415,764
Asia	64,267			65,852			134,385			136,984
North American Wholesale	38,252			41,357			77,560			85,186
Licensing	26,792			27,118			52,405			57,368
Total net revenue	$	608,571		$	639,012		$	1,131,112		$	1,187,926
Earnings (loss)from operations:
North American Retail	$	(4,662	)	$	10,390		$	(13,061	)	$	6,157
Europe	24,513			39,275			17,881			34,057
Asia	2,264			5,039			5,617			12,003
North American Wholesale	5,167			8,478			12,920			17,127
Licensing	24,909			25,101			47,630			51,305
Corporate Overhead	(22,333		)	(21,374		)	(43,106		)	(40,078		)
Restructuring Charges	—			(6,129		)	—			(8,466		)
Total earnings from operations	$	29,858		$	60,780		$	27,881		$	72,105

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Restructuring Charges (Tables)

6 Months Ended

Aug. 02, 2014

Restructuring Charges [Abstract]

Schedule of restructuring components and activity

The following table summarizes the components of the restructuring activities during the fiscal year ended February 1, 2014 and six months ended August 2, 2014 (in thousands):

	Severance			Impairment and Lease Termination			Total
Balance at February 2, 2013	$	—		$	—		$	—
Charges to operations	9,206			3,236			12,442
Non-cash write-offs	—			(1,717		)	(1,717		)
Cash payments	(4,567		)	(1,492		)	(6,059		)
Foreign currency and other adjustments	(61		)	(27		)	(88		)
Balance at February 1, 2014	$	4,578		$	—		$	4,578
Cash payments	(1,892		)	—			(1,892		)
Foreign currency and other adjustments	(846		)	—			(846		)
Balance at August 2, 2014	$	1,840		$	—		$	1,840

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Derivative Financial Instruments (Details) (USD $) In Thousands, unless otherwise specified	Aug. 02, 2014	Feb. 01, 2014
ASSETS:
Derivatives, assets	$ 3,248	$ 2,116
LIABILITIES:
Derivatives, liabilities	782	2,293
Derivatives designated as hedging instruments: | Foreign exchange currency contracts | Other current assets | Cash flow hedges
ASSETS:
Derivatives, assets	1,430	977
Derivatives designated as hedging instruments: | Foreign exchange currency contracts | Accrued expenses | Cash flow hedges
LIABILITIES:
Derivatives, liabilities	237	672
Derivatives not designated as hedging instruments:
LIABILITIES:
Derivatives, liabilities	545	1,621
Derivatives not designated as hedging instruments: | Foreign exchange currency contracts | Other current assets
ASSETS:
Derivatives, assets	1,818	1,139
Derivatives not designated as hedging instruments: | Foreign exchange currency contracts | Accrued expenses
LIABILITIES:
Derivatives, liabilities	105	1,040
Derivatives not designated as hedging instruments: | Interest rate swaps | Other long-term liabilities
LIABILITIES:
Derivatives, liabilities	$ 440	$ 581

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Restructuring Charges (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013	Feb. 01, 2014
Restructuring reserve activity
Beginning balance			$ 4,578	$ 0	$ 0
Charges to operations	0	6,129	0	8,466	12,442
Non-cash write-offs					(1,717)
Cash payments			(1,892)		(6,059)
Foreign currency and other adjustments			(846)		(88)
Ending balance	1,840		1,840		4,578
Severance
Restructuring reserve activity
Beginning balance			4,578	0	0
Charges to operations					9,206
Non-cash write-offs					0
Cash payments			(1,892)		(4,567)
Foreign currency and other adjustments			(846)		(61)
Ending balance	1,840		1,840		4,578
Impairment and Lease Termination
Restructuring reserve activity
Beginning balance			0	0	0
Charges to operations					3,236
Non-cash write-offs					(1,717)
Cash payments			0		(1,492)
Foreign currency and other adjustments			0		(27)
Ending balance	0		0		0
Accrued expenses
Restructuring activity
Restructuring reserve included in accrued expenses	$ 1,840		$ 1,840		$ 4,578

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Borrowings and Capital Lease Obligations (Tables)

6 Months Ended

Aug. 02, 2014

Debt Disclosure [Abstract]

Summary of borrowings and capital lease obligations

Borrowings and capital lease obligations are summarized as follows (in thousands):

	Aug 2, 2014		Feb 1, 2014
European capital lease, maturing quarterly through 2016	$	7,294	$	8,637
Other	1,438		3,103
	8,732		11,740
Less current installments	1,997		4,160
Long-term capital lease obligations and other debt	$	6,735	$	7,580

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Share-Based Compensation (Tables)

6 Months Ended

Aug. 02, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of share-based compensation expense recognized under all of the Company's stock plans

The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): 

	Three Months Ended				Six Months Ended
	Aug 2, 2014		Aug 3, 2013		Aug 2, 2014		Aug 3, 2013
Stock options	$	620	$	684	$	1,076	$	1,257
Nonvested stock awards/units	3,439		2,994		6,377		4,599
Employee Stock Purchase Plan	97		73		160		143
Total share-based compensation expense	$	4,156	$	3,751	$	7,613	$	5,999

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Earnings per Share

6 Months Ended

Aug. 02, 2014

Earnings Per Share [Abstract]

Earnings per Share

EarningsPer Share

Basic earnings per share represents net earningsattributable to common stockholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share represents net earnings attributable to common stockholders divided by the weighted average number of common shares outstanding, inclusive of the dilutive impact of common equivalent shares outstanding during the period. However, nonvested restricted stock awards (referred to as participating securities) are excluded from the dilutive impact of common equivalent shares outstanding in accordance with authoritative guidance under the two-class method since the nonvested restricted stockholders are entitled to participate in dividends declared on common stock as if the shares were fully vested and hence are deemed to be participating securities. Under the two-class method, earnings attributable to nonvested restricted stockholders are excluded from net earnings attributable to common stockholders for purposes of calculating basic and diluted earnings per common share. However, net losses are not allocated to nonvested restricted stockholders since they are not contractually obligated to share in the losses of the Company.

The computation of basic and diluted net earningsper common share attributable to common stockholders is as follows (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	Aug 2, 2014		Aug 3, 2013		Aug 2, 2014		Aug 3, 2013
Net earnings attributable to Guess?, Inc.	$	21,954	$	39,866	$	19,853	$	49,782
Less net earnings attributable to nonvested restricted stockholders	167		351		292		410
Net earnings attributable to common stockholders	$	21,787	$	39,515	$	19,561	$	49,372
Weighted average common shares used in basic computations	84,573		84,080		84,536		84,331
Effect of dilutive securities:
Stock options and restricted stock units	226		267		229		232
Weighted average common shares used in diluted computations	84,799		84,347		84,765		84,563
Net earnings per common share attributable to common stockholders:
Basic	$	0.26	$	0.47	$	0.23	$	0.59
Diluted	$	0.26	$	0.47	$	0.23	$	0.58

For the three months ended August 2, 2014 and August 3, 2013, equity awards granted for 1,666,111 and 1,061,684, respectively, of the Company’s common shares and for the six months ended August 2, 2014 and August 3, 2013, equity awards granted for 1,549,291 and 1,412,576, respectively, of the Company’s common shares were outstanding but were excluded from the computation of diluted weighted average common shares and common share equivalents outstanding because the assumed proceeds, as calculated under the treasury stock method, resulted in these awards being antidilutive. For the three and six months ended August 2, 2014, the Company also excluded 259,700 nonvested stock units which are subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common share equivalents outstanding because the performance condition had not yet been achieved as of August 2, 2014. For the three and six months ended August 3, 2013, the Company excluded 243,700 nonvested stock units which were subject to the achievement of performance-based vesting conditions from the computation of diluted weighted average common shares and common share equivalents outstanding because the performance condition had not yet been achieved as of August 3, 2013.

On March 14, 2011, the Company’s Board of Directors authorized a program to repurchase, from time-to-time and as market and business conditions warrant, up to $250 millionof the Company’s common stock (the “2011 Share Repurchase Program”). On June 26, 2012, the Company’s Board of Directors authorized a new program to repurchase, from time-to-time and as market and business conditions warrant, up to $500 millionof the Company’s common stock (the “2012 Share Repurchase Program”). The 2012 Share Repurchase Program was in addition to the 2011 Share Repurchase Program. Repurchases under programs may be made on the open market or in privately negotiated transactions, pursuant to Rule 10b5-1 trading plans or other available means. There is no minimum or maximum number of shares to be repurchased under programs and programs may be discontinued at any time, without prior notice. There were noshare repurchases under the 2012 Share Repurchase Program during the three and six months ended August 2, 2014. During the six months ended August 3, 2013, theCompany repurchased 882,551 shares under the 2011 and 2012 Share Repurchase Programs at an aggregate cost of $22.1 million. All such share repurchases were made during the three months ended May 4, 2013. As of August 2, 2014, the Company had remaining authority under the 2012 Share Repurchase Program to purchase $495.8 million of its common stock and no remaining authority to purchase shares under the 2011 Share Repurchase Program.

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Supplemental Executive Retirement Plan (Tables)

6 Months Ended

Aug. 02, 2014

Compensation and Retirement Disclosure [Abstract]

Components of net periodic pension cost

The components of net periodic pension cost for the three and six months ended August 2, 2014 and August 3, 2013 were as follows (in thousands):

	Three Months Ended					Six Months Ended
	Aug 2, 2014			Aug 3, 2013		Aug 2, 2014			Aug 3, 2013
Interest cost	$	572		$	586	$	1,144		$	1,172
Net amortization of unrecognized prior service (credit) cost	(58		)	156		(116		)	311
Net amortization of actuarial losses	235			277		469			554
Net periodic defined benefit pension cost	$	749		$	1,019	$	1,497		$	2,037

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Stockholders' Equity and Redeemable Noncontrolling Interests (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Accumulated other comprehensive income (loss), net of tax
Beginning balance	$ 6,533	$ (23,201)	$ (13,801)	$ (2,461)
Gains (losses) arising during the period	(18,097)	5,730	1,678	(14,889)
Reclassification to net earnings for (gains) losses realized	790	(156)	1,349	(277)
Net other comprehensive income (loss)	(17,307)	5,574	3,027	(15,166)
Ending balance	(10,774)	(17,627)	(10,774)	(17,627)
Foreign Currency Translation Adjustment
Accumulated other comprehensive income (loss), net of tax
Beginning balance	14,846	(14,148)	(7,003)	10,618
Gains (losses) arising during the period	(19,424)	2,951	2,425	(21,815)
Reclassification to net earnings for (gains) losses realized	0	0	0	0
Net other comprehensive income (loss)	(19,424)	2,951	2,425	(21,815)
Ending balance	(4,578)	(11,197)	(4,578)	(11,197)
Derivative Financial Instruments Designated as Cash Flow Hedges
Accumulated other comprehensive income (loss), net of tax
Beginning balance	(1,667)	1,918	(113)	(1,782)
Gains (losses) arising during the period	1,352	64	(706)	4,152
Reclassification to net earnings for (gains) losses realized	681	(424)	1,185	(812)
Net other comprehensive income (loss)	2,033	(360)	479	3,340
Ending balance	366	1,558	366	1,558
Marketable Securities
Accumulated other comprehensive income (loss), net of tax
Beginning balance	33	169	103	110
Gains (losses) arising during the period	(25)	(81)	(41)	(22)
Reclassification to net earnings for (gains) losses realized	0	0	(54)	0
Net other comprehensive income (loss)	(25)	(81)	(95)	(22)
Ending balance	8	88	8	88
SERP
Accumulated other comprehensive income (loss), net of tax
Beginning balance	(6,679)	(11,140)	(6,788)	(11,407)
Gains (losses) arising during the period	0	2,796	0	2,796
Reclassification to net earnings for (gains) losses realized	109	268	218	535
Net other comprehensive income (loss)	109	3,064	218	3,331
Ending balance	$ (6,570)	$ (8,076)	$ (6,570)	$ (8,076)

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Fair Value Measurements (Details) (USD $)	6 Months Ended	12 Months Ended
	Aug. 02, 2014	Feb. 01, 2014
Transfers of financial instruments
Value of transfers between levels	$ 0	$ 0
Assets and liabilities measured at fair value on a recurring basis | Level 1
Assets:
Foreign exchange currency contracts, Assets	0	0
Available-for-sale securities	5,066,000	5,732,000
Total Assets	5,066,000	5,732,000
Liabilities:
Foreign exchange currency contracts, Liabilities	0	0
Interest rate swap	0	0
Deferred compensation obligations	0	0
Total Liabilities	0	0
Assets and liabilities measured at fair value on a recurring basis | Level 2
Assets:
Foreign exchange currency contracts, Assets	3,248,000	2,116,000
Available-for-sale securities	0	0
Total Assets	3,248,000	2,116,000
Liabilities:
Foreign exchange currency contracts, Liabilities	342,000	1,712,000
Interest rate swap	440,000	581,000
Deferred compensation obligations	8,305,000	7,498,000
Total Liabilities	9,087,000	9,791,000
Assets and liabilities measured at fair value on a recurring basis | Level 3
Assets:
Foreign exchange currency contracts, Assets	0	0
Available-for-sale securities	0	0
Total Assets	0	0
Liabilities:
Foreign exchange currency contracts, Liabilities	0	0
Interest rate swap	0	0
Deferred compensation obligations	0	0
Total Liabilities	0	0
Assets and liabilities measured at fair value on a recurring basis | Fair Value
Assets:
Foreign exchange currency contracts, Assets	3,248,000	2,116,000
Available-for-sale securities	5,066,000	5,732,000
Total Assets	8,314,000	7,848,000
Liabilities:
Foreign exchange currency contracts, Liabilities	342,000	1,712,000
Interest rate swap	440,000	581,000
Deferred compensation obligations	8,305,000	7,498,000
Total Liabilities	9,087,000	9,791,000
Marketable equity securities
Assets:
Available-for-sale securities	$ 100,000	$ 600,000

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CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Aug. 02, 2014	Feb. 01, 2014
Current assets:
Cash and cash equivalents	$ 461,519	$ 502,945
Short-term investments	5,019	5,123
Accounts receivable, net	233,906	276,565
Inventories	392,387	350,899
Other current assets	109,475	80,554
Total current assets	1,202,306	1,216,086
Property and equipment, net	309,155	324,606
Goodwill	38,639	38,992
Other intangible assets, net	12,336	13,143
Long-term deferred tax assets	56,891	54,973
Other assets	121,092	116,631
Total assets	1,740,419	1,764,431
Current liabilities:
Current portion of capital lease obligations and borrowings	1,997	4,160
Accounts payable	194,101	191,532
Accrued expenses	164,068	174,333
Total current liabilities	360,166	370,025
Capital lease obligations and other long-term debt	6,735	7,580
Deferred rent and lease incentives	90,044	90,492
Other long-term liabilities	114,695	120,518
Total liabilities	571,640	588,615
Redeemable noncontrolling interests	5,468	5,830
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $.01 par value. Authorized 10,000,000 shares; no shares issued and outstanding	0	0
Common stock, $.01 par value. Authorized 150,000,000 shares; issued 139,513,762 and 139,245,729 shares, outstanding 85,257,404 and 84,962,345 shares, at August 2, 2014 and February 1, 2014, respectively	853	850
Paid-in capital	447,587	439,742
Retained earnings	1,229,022	1,247,180
Accumulated other comprehensive loss	(10,774)	(13,801)
Treasury stock, 54,256,358 and 54,283,384 shares at August 2, 2014 and February 1, 2014, respectively	(519,198)	(519,457)
Guess, Inc. stockholders’ equity	1,147,490	1,154,514
Nonredeemable noncontrolling interests	15,821	15,472
Total stockholders’ equity	1,163,311	1,169,986
Total liabilities and stockholders' equity	$ 1,740,419	$ 1,764,431

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Feb. 01, 2014
Income Tax Disclosure [Abstract]
Effective income tax rate (as a percentage)	35.10%	33.00%
Aggregate accruals for uncertain tax positions, including penalties and interest	$ 12.0		$ 11.4

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Aug. 02, 2014	Aug. 03, 2013
Cash flows from operating activities:
Net earnings	$ 20,085	$ 51,803
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization of property and equipment	41,363	43,327
Amortization of intangible assets	1,291	981
Share-based compensation expense	7,613	5,999
Unrealized forward contract gains	(1,047)	(1,601)
Net loss on disposition of property and equipment and long-term assets	5,986	7,290
Other items, net	847	(3,215)
Changes in operating assets and liabilities:
Accounts receivable	42,381	38,950
Inventories	(43,485)	(33,156)
Prepaid expenses and other assets	(8,484)	4,752
Accounts payable and accrued expenses	(30,286)	(15,890)
Deferred rent and lease incentives	(442)	(2,354)
Other long-term liabilities	(5,459)	5,281
Net cash provided by operating activities	30,363	102,167
Cash flows from investing activities:
Purchases of property and equipment	(32,316)	(40,445)
Changes in other assets	319	7,804
Proceeds from sale and maturity of investments	598	1,826
Acquisition of businesses, net of cash acquired	(309)	(653)
Net cash settlement of forward contracts	(842)	1,468
Net cash used in investing activities	(32,550)	(30,000)
Cash flows from financing activities:
Proceeds from borrowings	786	1,294
Repayment of borrowings and capital lease obligations	(3,720)	(1,002)
Dividends paid	(38,455)	(34,100)
Noncontrolling interest capital contributions	0	521
Issuance of common stock, net of nonvested award repurchases	619	3,259
Excess tax benefits from share-based compensation	148	221
Purchase of treasury stock	0	(22,099)
Net cash used in financing activities	(40,622)	(51,906)
Effect of exchange rates on cash and cash equivalents	1,383	(5,557)
Net change in cash and cash equivalents	(41,426)	14,704
Cash and cash equivalents at beginning of period	502,945	329,021
Cash and cash equivalents at end of period	461,519	343,725
Supplemental cash flow data:
Interest paid	870	537
Income taxes paid	$ 46,208	$ 50,986

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Derivative Financial Instruments (Details 4) (USD $)	3 Months Ended		6 Months Ended				6 Months Ended
	Aug. 02, 2014 Other income/expense	Aug. 03, 2013 Other income/expense	Aug. 02, 2014 Other income/expense	Aug. 03, 2013 Other income/expense	Aug. 02, 2014 Derivatives not designated as hedging instruments: Euro	Feb. 01, 2014 Derivatives not designated as hedging instruments: Euro	Aug. 02, 2014 Derivatives not designated as hedging instruments: Canadian dollar	Feb. 01, 2014 Derivatives not designated as hedging instruments: Canadian dollar
Derivative instruments not designated as hedging instruments
U.S. dollar forward contracts outstanding					$ 109,400,000	$ 111,800,000	$ 11,500,000	$ 13,800,000
U.S. dollar forward contracts outstanding, maximum remaining maturity period (in months)					13 months		4 months
Gain (loss) on foreign exchange currency contracts recognized in earnings before taxes	3,984,000	(727,000)	1,195,000	3,049,000
Gain (loss) on interest rate swaps recognized in earnings before taxes	$ 57,000	$ 118,000	$ 132,000	$ 196,000

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Basis of Presentation (Details)	6 Months Ended	12 Months Ended
	Aug. 02, 2014	Feb. 01, 2014	Feb. 02, 2013
Fiscal Year [Abstract]
Number of days in fiscal year	364 days	364 days	371 days

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Subsequent Events

6 Months Ended

Aug. 02, 2014

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On August 27, 2014, the Company announced a regular quarterly cash dividend of $0.225 per share on the Company’s common stock. The cash dividend will be paid on September 26, 2014 to shareholders of record as of the close of business on September 10, 2014.

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Earnings per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Earnings Per Share [Abstract]
Net earnings attributable to Guess, Inc.	$ 21,954	$ 39,866	$ 19,853	$ 49,782
Less net earnings attributable to nonvested restricted stockholders	167	351	292	410
Net earnings attributable to common stockholders	$ 21,787	$ 39,515	$ 19,561	$ 49,372
Weighted average common shares used in basic computations	84,573,000	84,080,000	84,536,000	84,331,000
Effect of dilutive securities:
Stock options and restricted stock units (in shares)	226,000	267,000	229,000	232,000
Weighted average common shares used in diluted computations	84,799,000	84,347,000	84,765,000	84,563,000
Net earnings per common share attributable to common stockholders:
Basic (in dollars per share)	$ 0.26	$ 0.47	$ 0.23	$ 0.59
Diluted (in dollars per share)	$ 0.26	$ 0.47	$ 0.23	$ 0.58
Antidilutive securities excluded from computation of earnings per share
Anti-dilutive equity awards excluded from computation of dilutive weighted average common shares	1,666,111	1,061,684	1,549,291	1,412,576
Performance awards/units
Antidilutive securities excluded from computation of earnings per share
Anti-dilutive equity awards excluded from computation of dilutive weighted average common shares	259,700	243,700	259,700	243,700

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Earnings per Share (Tables)

6 Months Ended

Aug. 02, 2014

Earnings Per Share [Abstract]

Computation of basic and diluted net earnings per common share attributable to common stockholders

The computation of basic and diluted net earningsper common share attributable to common stockholders is as follows (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	Aug 2, 2014		Aug 3, 2013		Aug 2, 2014		Aug 3, 2013
Net earnings attributable to Guess?, Inc.	$	21,954	$	39,866	$	19,853	$	49,782
Less net earnings attributable to nonvested restricted stockholders	167		351		292		410
Net earnings attributable to common stockholders	$	21,787	$	39,515	$	19,561	$	49,372
Weighted average common shares used in basic computations	84,573		84,080		84,536		84,331
Effect of dilutive securities:
Stock options and restricted stock units	226		267		229		232
Weighted average common shares used in diluted computations	84,799		84,347		84,765		84,563
Net earnings per common share attributable to common stockholders:
Basic	$	0.26	$	0.47	$	0.23	$	0.59
Diluted	$	0.26	$	0.47	$	0.23	$	0.58

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Basis of Presentation

6 Months Ended

Aug. 02, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

In the opinion of management, the accompanying unaudited condensed consolidated financial statements of Guess?, Inc. and its subsidiaries (the “Company”) contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of the condensed consolidated balance sheets as of August 2, 2014 and February 1, 2014, the condensed consolidated statements of income and comprehensive income for the three and six months ended August 2, 2014 and August 3, 2013, and the condensed consolidated statements of cash flows for the six months ended August 2, 2014 and August 3, 2013. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the instructions to Rule 10-01 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, they have been condensed and do not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three and six months ended August 2, 2014 are not necessarily indicative of the results of operations to be expected for the full fiscal year. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended February 1, 2014.

The three and six months ended August 2, 2014 had the same number of days as the three and six months ended August 3, 2013. All references herein to “fiscal 2015,” “fiscal 2014” and “fiscal 2013” represent the results of the 52-week fiscal year ending January 31, 2015, the 52-week fiscal year ended February 1, 2014 and the 53-week fiscal year ended February 2, 2013, respectively. 

New Accounting Guidance

In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar loss or a tax credit carryforward, if specific criteria are met. The Company adopted this guidance effective February 2, 2014. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

In April 2014, the FASB issued authoritative guidance which raises the threshold for disposals to qualify as discontinued operations. Under this new guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance is effective for fiscal periods beginning after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements or related disclosures.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Aug. 02, 2014	Feb. 01, 2014
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	150,000,000	150,000,000
Common stock, shares issued	139,513,762	139,245,729
Common stock, shares outstanding	85,257,404	84,962,345
Treasury stock, shares	54,256,358	54,283,384

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Related Party Transactions

6 Months Ended

Aug. 02, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company and its subsidiaries periodically enter into transactions with other entities or individuals that are considered related parties, including certain transactions with entities affiliated with trusts for the respective benefit of Paul Marciano, who is an executive of the Company, Maurice Marciano, Chairman of the Board, Armand Marciano, their brother and former executive of the Company, and certain of their children (the “Marciano Trusts”).

Leases

The Company leases warehouse and administrative facilities, including the Company’s corporate headquarters in Los Angeles, California, from partnerships affiliated with the Marciano Trusts and certain of their affiliates. There were four of these leases in effect at August 2, 2014 with expiration dates ranging from 2015 to 2020.

Aggregate rent and property tax expense under these related party leases was $2.9 million for each of the six months ended August 2, 2014 and August 3, 2013. The Company believes the related party lease terms have not been significantly affected by the fact that the Company and the lessors are related.

Aircraft Arrangements

The Company periodically charters aircraft owned by MPM Financial, LLC (“MPM Financial”), an entity affiliated with the Marciano Trusts, through MPM Financial and independent third party management companies contracted by MPM Financial to manage its aircraft. Under an informal arrangement with MPM Financial and the third party management companies, the Company has chartered, and may from time-to-time continue to charter, aircraft owned by MPM Financial at a discount from the third party management companies’ preferred customer hourly charter rates. The total fees paid under these arrangements for the six months ended August 2, 2014 were approximately $0.9 million. During the six months ended August 3, 2013, the total fees paid under these arrangements were minimal.

Consulting Arrangement

After serving for over 30 years as an executive and leader for Guess?, Inc., co-founder Maurice Marciano elected to retire from his position as executive Chairman of the Board and as an employee of the Company upon the expiration of his employment agreement on January 28, 2012. Mr. Marciano continues to serve the Company as its non-executive Chairman of the Board. In addition, under the terms of his previously existing employment agreement, the Company and Mr. Marciano entered into a two-year consulting agreement (the “Marciano Consulting Agreement”) under which Mr. Marciano provided certain consulting services to the Company, including advice and counsel to the Company’s Chief Executive Officer and other senior executives. The Marciano Consulting Agreement, which had a two-year term that commenced on January 28, 2012, provided for consulting fees of $500,000 per year and continued automobile use in a manner consistent with past practice. In January 2014, the Company extended the Marciano Consulting Agreement for an additional one-year period. Total expenses incurred with respect to the Marciano Consulting Agreement were approximately $0.3 million for each of the six months ended August 2, 2014 and August 3, 2013.

Other Transactions

From time-to-time, the Company utilizes a third-party agent named Harmony Collection, LLC to produce specific apparel products on behalf of the Company. Armand Marciano, brother of Maurice and Paul Marciano, is part owner and an executive of the parent company of Harmony Collection, LLC. The total payments made by the Company under this arrangement for the six months ended August 2, 2014 and August 3, 2013 were approximately $0.7 million and $0.8 million, respectively. The Company believes that the price and transaction terms have not been significantly affected by the relationship between the parties.

These related party disclosures should be read in conjunction with the disclosure concerning related party transactions in the Company’s Annual Report on Form 10-K for the year ended February 1, 2014.

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Document and Entity Information	6 Months Ended
	Aug. 02, 2014	Sep. 02, 2014
Document and Entity Information
Entity Registrant Name	GUESS INC
Trading Symbol	GES
Entity Central Index Key	0000912463
Document Type	10-Q
Document Period End Date	Aug. 02, 2014
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		85,214,945
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

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Commitments and Contingencies

6 Months Ended

Aug. 02, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Leases

The Company leases its showrooms, advertising, licensing, sales and merchandising offices, remote distribution and warehousing facilities and retail and factory outlet store locations under operating lease agreements expiring on various dates through September 2031. Some of these leases require the Company to make periodic payments for property taxes, utilities and common area operating expenses. Certain retail store leases provide for rents based upon the minimum annual rental amount and a percentage of annual sales volume, generally ranging from 2% to 12%, when specific sales volumes are exceeded. Some leases include lease incentives, rent abatements and fixed rent escalations, which are amortized and recorded over the initial lease term on a straight-line basis. The Company also leases some of its equipment under operating lease agreements expiring at various dates through December 2018. As discussed in further detail in Note 9, the Company leases a building in Florence, Italy under a capital lease.

In March 2014, the Company amended its lease with respect to its primary U.S. distribution center based in Louisville, Kentucky to extend the term for an additional ten years, to 2024. The amendment also provides for two extension options for an additional period of five years each.

Litigation

On May 6, 2009, Gucci America, Inc. filed a complaint in the U.S. District Court for the Southern District of New York against Guess?, Inc. and certain third-party licensees for the Company asserting, among other things, trademark and trade dress law violations and unfair competition. The complaint sought injunctive relief, compensatory damages, including treble damages, and certain other relief. Complaints similar to those in the above action have also been filed by Gucci entities against the Company and certain of its subsidiaries in the Court of Milan, Italy, the Court of Paris, France and the Intermediate People’s Court of Nanjing, China. The three week bench trial in the U.S. matter concluded on April 19, 2012, with the court issuing a preliminary ruling on May 21, 2012 and a final ruling on July 19, 2012. Although the plaintiff was seeking compensation in the U.S. matter in the form of damages of $26 million and an accounting of profits of $99 million, the final ruling provided for monetary damages of $2.3 million against the Company and $2.3 million against certain of its licensees. The court also granted narrow injunctions in favor of the plaintiff for certain of the claimed infringements. On August 20, 2012, the appeal period expired without any party having filed an appeal, rendering the judgment final.On May 2, 2013, the Court of Milan ruled in favor of the Company in the Milan, Italy matter. In the ruling, the Court rejected all of the plaintiff’s claims and ordered the cancellation of three of the plaintiff’s Italian and four of the plaintiff’s European Community trademark registrations. On June 10, 2013, the plaintiff appealed the Court’s ruling in the Milan matter. In the China matter, the Intermediate People’s Court of Nanjing, China issued a ruling on November 8, 2013 granting an injunction in favor of the plaintiff for certain of the claimed infringements on handbags and small leather goods and awarding the plaintiff statutory damages in the amount of approximately$80,000. The Company strongly disagrees with the Court’s decision and has appealed the ruling. The judgment in the China matter is stayed pending the appeal, which was heard in May 2014. The France matter in the Court of Paris is currently scheduled to be heard in September 2014.

On August 25, 2006, Franchez Isaguirre, a former employee of the Company, filed a complaint in the Superior Court of California, County of Los Angeles alleging violations by the Company of California wage and hour laws. The complaint was subsequently amended, adding a second former employee as an additional named party. The plaintiffs purport to represent a class of similarly situated employees in California who allegedly had been injured by not being provided adequate meal and rest breaks. The complaint seeks unspecified compensatory damages, statutory penalties, attorney’s fees and injunctive and declaratory relief. On June 9, 2009, the Court certified the class but immediately stayed the case pending the resolution of a separate California Supreme Court case on the standards of class treatment for meal and rest break claims. Following the Supreme Court ruling, the Superior Court denied the Company’s motions to decertify the class and to narrow the class in January 2013 and June 2013, respectively. The Company subsequently petitioned to have the Court’s decision not to narrow the class definition reviewed. That petition was ultimately denied by the California Supreme Court in April 2014. No trial date has been set.

Although the Company believes that it has a strong position and will continue to vigorously defend each of these remaining matters, it is unable to predict with certainty whether or not these efforts will ultimately be successful or whether the outcomes will have a material impact on the Company’s financial position or results of operations.

The Company is also involved in various other claims and other matters incidental to the Company’s business, the resolution of which is not expected to have a material adverse effect on the Company’s financial position or results of operations. No material amounts were accrued as of August 2, 2014 or February 1, 2014 related to any of the Company’s legal proceedings.

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Income Statement [Abstract]
Product sales	$ 581,779	$ 611,894	$ 1,078,707	$ 1,130,558
Net royalties	26,792	27,118	52,405	57,368
Net revenue	608,571	639,012	1,131,112	1,187,926
Cost of product sales	391,794	390,480	738,104	741,968
Gross profit	216,777	248,532	393,008	445,958
Selling, general and administrative expenses	186,919	181,623	365,127	365,387
Restructuring charges	0	6,129	0	8,466
Earnings from operations	29,858	60,780	27,881	72,105
Other income (expense):
Interest expense	(772)	(365)	(1,297)	(914)
Interest income	320	475	725	809
Other income (expense), net	4,766	(139)	3,647	5,318
Total other income (expense)	4,314	(29)	3,075	5,213
Earnings before income tax expense	34,172	60,751	30,956	77,318
Income tax expense	11,900	20,048	10,871	25,515
Net earnings	22,272	40,703	20,085	51,803
Net earnings attributable to noncontrolling interests	318	837	232	2,021
Net earnings attributable to Guess, Inc.	$ 21,954	$ 39,866	$ 19,853	$ 49,782
Net earnings per common share attributable to common stockholders (Note 2):
Basic (in dollars per share)	$ 0.26	$ 0.47	$ 0.23	$ 0.59
Diluted (in dollars per share)	$ 0.26	$ 0.47	$ 0.23	$ 0.58
Weighted average common shares outstanding attributable to common stockholders (Note 2):
Basic (in shares)	84,573	84,080	84,536	84,331
Diluted (in shares)	84,799	84,347	84,765	84,563
Dividends declared per common share (in dollars per share)	$ 0.225	$ 0.200	$ 0.450	$ 0.400

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Restructuring Charges

6 Months Ended

Aug. 02, 2014

Restructuring Charges [Abstract]

Restructuring Charges

Restructuring Charges

During the first quarter of fiscal 2014, the Company implemented plans to streamline its structure and reduce expenses in both Europe and North America. During the second quarter of fiscal 2014, the Company expanded these plans to include the consolidation and streamlining of certain operations in Europe and Asia. There were no restructuring charges incurred during the three and six months ended August 2, 2014 as the actions under these plans were substantially completed during fiscal 2014. The Company does not expect significant future cash-related severance and lease termination charges related to these plans to be incurred during the remainder of fiscal 2015. During the three and six months ended August 3, 2013, the Company incurred restructuring charges of $6.1 million and $8.5 million, respectively, related primarily to severance, impairment and lease termination costs. As of August 2, 2014, the Company had a balance of approximately $1.8 million in accrued expenses for amounts expected to be paid during the remainder of fiscal 2015. At February 1, 2014, the Company had a balance of approximately $4.6 million in accrued expenses related to these restructuring activities.

The following table summarizes the components of the restructuring activities during the fiscal year ended February 1, 2014 and six months ended August 2, 2014 (in thousands):

	Severance			Impairment and Lease Termination			Total
Balance at February 2, 2013	$	—		$	—		$	—
Charges to operations	9,206			3,236			12,442
Non-cash write-offs	—			(1,717		)	(1,717		)
Cash payments	(4,567		)	(1,492		)	(6,059		)
Foreign currency and other adjustments	(61		)	(27		)	(88		)
Balance at February 1, 2014	$	4,578		$	—		$	4,578
Cash payments	(1,892		)	—			(1,892		)
Foreign currency and other adjustments	(846		)	—			(846		)
Balance at August 2, 2014	$	1,840		$	—		$	1,840

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Inventories

6 Months Ended

Aug. 02, 2014

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories consist of the following (in thousands):

	Aug 2, 2014		Feb 1, 2014
Raw materials	$	14,778	$	10,585
Work in progress	175		977
Finished goods	377,434		339,337
	$	392,387	$	350,899

As of August 2, 2014 and February 1, 2014, the Company had an allowance to write-down inventories to the lower of cost or market of $21.8 million and $23.4 million, respectively.

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Basis of Presentation (Policies)

6 Months Ended

Aug. 02, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Guidance

New Accounting Guidance

In July 2013, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance which requires that an unrecognized tax benefit be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar loss or a tax credit carryforward, if specific criteria are met. The Company adopted this guidance effective February 2, 2014. The adoption of this guidance did not have a material impact on the Company’s condensed consolidated financial statements.

In April 2014, the FASB issued authoritative guidance which raises the threshold for disposals to qualify as discontinued operations. Under this new guidance, a discontinued operation is (1) a component of an entity or group of components that have been disposed of or are classified as held for sale and represent a strategic shift that has or will have a major effect on an entity’s operations and financial results, or (2) an acquired business that is classified as held for sale on the acquisition date. This guidance also requires expanded or new disclosures for discontinued operations, individually material disposals that do not meet the definition of a discontinued operation, an entity’s continuing involvement with a discontinued operation following disposal and retained equity method investments in a discontinued operation. This guidance is effective for fiscal periods beginning after December 15, 2014. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016 and allows for either full retrospective or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In August 2014, the FASB issued authoritative guidance that requires an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and requires additional disclosures if certain criteria are met. This guidance is effective for fiscal periods ending after December 15, 2016, with early adoption permitted. The adoption of this guidance is not expected to impact the Company’s consolidated financial statements or related disclosures.

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Supplemental Executive Retirement Plan

6 Months Ended

Aug. 02, 2014

Compensation and Retirement Disclosure [Abstract]

Supplemental Executive Retirement Plan

Supplemental Executive Retirement Plan

The components of net periodic pension cost for the three and six months ended August 2, 2014 and August 3, 2013 were as follows (in thousands):

	Three Months Ended					Six Months Ended
	Aug 2, 2014			Aug 3, 2013		Aug 2, 2014			Aug 3, 2013
Interest cost	$	572		$	586	$	1,144		$	1,172
Net amortization of unrecognized prior service (credit) cost	(58		)	156		(116		)	311
Net amortization of actuarial losses	235			277		469			554
Net periodic defined benefit pension cost	$	749		$	1,019	$	1,497		$	2,037

In July 2013, the Company amended the SERP to limit the amount of eligible wages under the plan that count toward the SERP benefit for the active participant. As a result, the projected benefit obligation and unrecognized prior service cost were reduced by $4.5 million during fiscal 2014.

As a non-qualified pension plan, no dedicated funding of the SERP is required; however, the Company has made, and may continue to make, periodic payments into insurance policies held in a rabbi trust to fund the expected obligations arising under the non-qualified SERP. The amount of any future payments into the insurance policies may vary, depending on any changes to the estimates of final annual compensation levels and investment performance of the trust. The cash surrender values of the insurance policies were $53.6 million and $51.4 million as of August 2, 2014 and February 1, 2014, respectively, and were included in other assets in the Company’s condensed consolidated balance sheets. As a result of changes in the value of the insurance policy investments, the Company recorded unrealized gains of $0.7 million and $2.2 million in other income during the three and six months ended August 2, 2014, respectively, and unrealized gains of $1.1 million and $2.6 million in other income during the three and six months ended August 3, 2013, respectively.The projected benefit obligation was $55.6 million and $54.7 million as of August 2, 2014 and February 1, 2014, respectively, and was included in accrued expenses and other long-term liabilities in the Company’s condensed consolidated balance sheets depending on the expected timing of payments.SERP benefit payments of $0.3 million were made during the three and six months ended August 2, 2014.

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Borrowings and Capital Lease Obligations

6 Months Ended

Aug. 02, 2014

Debt Disclosure [Abstract]

Borrowings and Capital Lease Obligations

Borrowings and Capital Lease Obligations

Borrowings and capital lease obligations are summarized as follows (in thousands):

	Aug 2, 2014		Feb 1, 2014
European capital lease, maturing quarterly through 2016	$	7,294	$	8,637
Other	1,438		3,103
	8,732		11,740
Less current installments	1,997		4,160
Long-term capital lease obligations and other debt	$	6,735	$	7,580

Capital Lease

The Company entered into a capital lease in December 2005 for a building in Florence, Italy. As of August 2, 2014, the capital lease obligation was $7.3 million. The Company entered into a separate interest rate swap agreement designated as a non-hedging instrument that resulted in a swap fixed rate of 3.55%. This interest rate swap agreement matures in 2016 and converts the nature of the capital lease obligation from Euribor floating-rate debt to fixed-rate debt. The fair value of the interest rate swap liability as of August 2, 2014 was approximately $0.4 million.

Credit Facilities

On July 6, 2011, the Company entered into a five-year senior secured revolving credit facility with JPMorgan Chase Bank, N.A., Bank of America, N.A. and the other lenders party thereto (the “Credit Facility”) which provided for a $200 millionrevolving multicurrency line of credit. The Credit Facility is available for direct borrowings and the issuance of letters of credit, subject to certain letters of credit sublimits. It may be used for working capital and other general corporate purposes.

On August 31, 2012, the Company increased its borrowing capacity under the Credit Facility from $200 million to $300 million by exercising the accordion feature in the Credit Facility pursuant to a Lender Joinder Agreement with the lenders party thereto. Also on August 31, 2012, the Company entered into an Amendment to the Credit Facility with the lenders party thereto to provide for (i) greater flexibility in certain of the Company’s covenants under the Credit Facility and (ii) access to a new $100 million accordion feature, subject to certain conditions and the willingness of existing or new lenders to assume such increased amount. As of August 2, 2014, the Company had $1.7 million in outstanding standby letters of credit, no outstanding documentary letters of credit and no outstanding borrowings under the Credit Facility.

The Company, through its European subsidiaries, maintains short-term uncommitted borrowing agreements, primarily for working capital purposes, with various banks in Europe. The majority of the borrowings under these agreements are secured by specific accounts receivable balances. Based on the applicable accounts receivable balances as of August 2, 2014, the Company could have borrowed up to $112.8 million under these agreements. As of August 2, 2014, the Company had no outstanding borrowings and $1.6 million in outstanding documentary letters of credit under these agreements. The agreements are denominated primarily in euros and provide for annual interest rates ranging from 0.5% to 3.0%. The maturities of any short-term borrowings under these arrangements are generally linked to the credit terms of the underlying accounts receivable that secure the borrowings. With the exception of one facility for up to $47.0 million that has a minimum net equity requirement, there are no other financial ratio covenants.

Other

From time-to-time, the Company will obtain other financing in foreign countries for working capital to finance its local operations.

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Subsequent Events (Details) (USD $)	3 Months Ended		6 Months Ended		0 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013	Aug. 27, 2014 Dividend Declared
Subsequent Events
Cash dividend announced on common stock (in dollars per share)	$ 0.225	$ 0.200	$ 0.450	$ 0.400	$ 0.225
Payment date of cash dividend					Sep. 26, 2014
Record date of cash dividend					Sep. 10, 2014

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Income Taxes

6 Months Ended

Aug. 02, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense for the interim periods was computed using the effective tax rate estimated to be applicable for the full fiscal year. The Company’s effective income tax rate increased to 35.1% for the six months ended August 2, 2014 from 33.0% for the six months ended August 3, 2013.

The Company accrues an amount for its estimate of additional income tax liability which the Company, more likely than not, could incur as a result of the ultimate resolution of income tax audits (“uncertain tax positions”). The Company reviews and updates the estimates used in the accrual for uncertain tax positions as more definitive information becomes available from taxing authorities, upon completion of tax audits, upon expiration of statutes of limitation, or upon occurrence of other events.

The Company had aggregate accruals for uncertain tax positions, including penalties and interest, of $12.0 million and $11.4 million as of August 2, 2014 and February 1, 2014, respectively. The change in the accrual balance from February 1, 2014 to August 2, 2014 resulted from the completion of tax audits during the six months ended August 2, 2014.

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Segment Information

6 Months Ended

Aug. 02, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s businesses are grouped into five reportable segments for management and internal financial reporting purposes: North American Retail, Europe, Asia, North American Wholesale and Licensing. Management evaluates segment performance based primarily on revenues and earnings (loss) from operations before restructuring charges, if any. The Company believes this segment reporting reflects how its five business segments are managed and each segment’s performance is evaluated by the Company’s chief operating decision maker to assess performance and make resource allocation decisions. The North American Retail segment includes the Company’s retail and e-commerce operations in North America and its retail operations in Central and South America. The Europe segment includes the Company’s wholesale, retail and e-commerce operations in Europe and the Middle East. The Asia segment includes the Company’s wholesale, retail and e-commerce operations in Asia. The North American Wholesale segment includes the Company’s wholesale operations in North America and Central and South America. The Licensing segment includes the worldwide licensing operations of the Company. The business segment operating results exclude corporate overhead costs, which consist of shared costs of the organization, and restructuring charges. These costs are presented separately and generally include, among other things, the following unallocated corporate costs: accounting and finance, executive compensation, facilities, global advertising and marketing, human resources, information technology and legal.

Net revenue and earnings (loss) from operations are summarized as follows for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands):

	Three Months Ended						Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Net revenue:
North American Retail	$	244,000		$	254,313		$	472,344		$	492,624
Europe	235,260			250,372			394,418			415,764
Asia	64,267			65,852			134,385			136,984
North American Wholesale	38,252			41,357			77,560			85,186
Licensing	26,792			27,118			52,405			57,368
Total net revenue	$	608,571		$	639,012		$	1,131,112		$	1,187,926
Earnings (loss)from operations:
North American Retail	$	(4,662	)	$	10,390		$	(13,061	)	$	6,157
Europe	24,513			39,275			17,881			34,057
Asia	2,264			5,039			5,617			12,003
North American Wholesale	5,167			8,478			12,920			17,127
Licensing	24,909			25,101			47,630			51,305
Corporate Overhead	(22,333		)	(21,374		)	(43,106		)	(40,078		)
Restructuring Charges	—			(6,129		)	—			(8,466		)
Total earnings from operations	$	29,858		$	60,780		$	27,881		$	72,105

Due to the seasonal nature of the Company’s business segments, the above net revenue and operating results are not necessarily indicative of the results that may be expected for the full fiscal year. Restructuring charges incurred during the three and six months ended August 3, 2013 related to plans to streamline and consolidate the Company’s operations and reduce expenses in North America, Europe and Asia. Refer to Note 6 for more information regarding these restructuring charges.

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Share-Based Compensation

6 Months Ended

Aug. 02, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Compensation

Share-Based Compensation

The following table summarizes the share-based compensation expense recognized under all of the Company’s stock plans during the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): 

	Three Months Ended				Six Months Ended
	Aug 2, 2014		Aug 3, 2013		Aug 2, 2014		Aug 3, 2013
Stock options	$	620	$	684	$	1,076	$	1,257
Nonvested stock awards/units	3,439		2,994		6,377		4,599
Employee Stock Purchase Plan	97		73		160		143
Total share-based compensation expense	$	4,156	$	3,751	$	7,613	$	5,999

Unrecognized compensation cost, adjusted for estimated forfeitures, related to nonvested stock options and nonvested stock awards/units totaled approximately $4.5 million and $23.9 million, respectively, as of August 2, 2014. This cost is expected to be recognized over a weighted average period of 1.7 years. The weighted average fair values of stock options granted during the six months ended August 2, 2014 and August 3, 2013 were $6.23 and $6.05, respectively. 

Grants

On April 2, 2014, the Company made an annual grant of 365,600 stock options and 301,200 nonvested stock awards/units to its employees. On April 3, 2013, the Company made an annual grant of 416,500 stock options and 408,400 nonvested stock awards/units to its employees.

Performance Awards

On July 11, 2013, the Company granted 100,000 nonvested stock units to Paul Marciano, the Company’s Chief Executive Officer and Vice Chairman of the Board, in connection with an employment agreement entered into between the Company and Mr. Marciano. The nonvested stock units had an initial vesting period of seven months followed by two annual vesting periods, which were subject to the achievement of performance-based vesting conditions for the last three quarters of fiscal 2014 and continued service vesting conditions through the vesting periods. The Company also granted a target of 143,700 nonvested stock units to Mr. Marciano, of which approximately 84% are expected to vest based on the achievement of performance-based conditions for the last three quarters of fiscal 2014 subject to continued service vesting conditions through the vesting date. Such shares are scheduled to vest on February 1, 2016.

On April 8, 2014, the Company granted 100,000 nonvested stock units to Mr. Marciano which have an initial vesting period of ten months followed by two annual vesting periods, subject to the achievement of performance-based vesting conditions for fiscal 2015 and continued service vesting conditions through the vesting periods. The Company also granted a target of 159,700 nonvested stock units to Mr. Marciano on April 8, 2014. The number of shares that will ultimately vest will equal 0% to 150% of the target number of shares, subject to the achievement of performance-based vesting conditions for fiscal 2015 and continued service vesting conditions through the vesting date. Such shares are scheduled to vest on January 31, 2017.

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Derivative Financial Instruments (Tables)

6 Months Ended

Aug. 02, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of fair value of derivative instruments in the condensed consolidated balance sheet

The fair value of derivative instruments in the condensed consolidated balance sheets as of August 2, 2014 and February 1, 2014 was as follows (in thousands):

	Derivative Balance Sheet Location	Fair Value at Aug 2, 2014		Fair Value at Feb 1, 2014
ASSETS:
Derivatives designated as hedging instruments:
Foreign exchange currency contracts:
Cash flow hedges	Other current assets	$	1,430	$	977
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other current assets	1,818		1,139
Total		$	3,248	$	2,116
LIABILITIES:
Derivatives designated as hedging instruments:
Foreign exchange currency contracts:
Cash flow hedges	Accrued expenses	$	237	$	672
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Accrued expenses	105		1,040
Interest rate swaps	Other long-term liabilities	440		581
Total derivatives not designated as hedging instruments		545		1,621
Total		$	782	$	2,293

Summary of gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings

The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): 

	Gain (Loss) Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings(1)	Gain (Loss) Reclassified from Accumulated OCI into Earnings
	Three Months Ended Aug 2, 2014		Three Months Ended Aug 3, 2013				Three Months Ended Aug 2, 2014			Three Months Ended Aug 3, 2013
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	1,866	$	247		Cost of sales	$	(265	)	$	393
Foreign exchange currency contracts	$	1	$	(20	)	Other income/expense	$	(25	)	$	115

	Gain (Loss) Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings(1)	Gain (Loss) Reclassified from Accumulated OCI into Earnings
	Six Months Ended Aug 2, 2014			Six Months Ended Aug 3, 2013			Six Months Ended Aug 2, 2014			Six Months Ended Aug 3, 2013
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	(706	)	$	4,479	Cost of sales	$	(759	)	$	872
Foreign exchange currency contracts	$	(106	)	$	418	Other income/expense	$	(56	)	$	94

 __________________________________

(1) The ineffective portion was immaterial during the three and six months ended August 2, 2014 and August 3, 2013 and was recorded in net earnings and included in interest income/expense.

Summary of net after-tax derivative activity recorded in accumulated other comprehensive income

The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands):

	Three Months Ended						Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Beginning balance gain (loss)	$	(1,667	)	$	1,918		$	(113	)	$	(1,782	)
Net gains (losses) from changes in cash flow hedges	1,352			64			(706		)	4,152
Net (gains) losses reclassified to earnings	681			(424		)	1,185			(812		)
Ending balance gain	$	366		$	1,558		$	366		$	1,558

Summary of gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense

The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands):

	Location of Gain (Loss) Recognized in Earnings	Gain (Loss) Recognized in Earnings					Gain Recognized in Earnings
		Three Months Ended Aug 2, 2014		Three Months Ended Aug 3, 2013			Six Months Ended Aug 2, 2014		Six Months Ended Aug 3, 2013
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other income/expense	$	3,984	$	(727	)	$	1,195	$	3,049
Interest rate swaps	Other income/expense	$	57	$	118		$	132	$	196

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Commitments and Contingencies (Details 2) (USD $)	0 Months Ended			0 Months Ended
	Jul. 19, 2012 Judicial Ruling U.S.	Jul. 19, 2012 Judicial Ruling U.S. Licensees	May 02, 2013 Pending Litigation Italy trademark	Nov. 08, 2013 Pending Litigation China
Litigation
Damages sought by plaintiff as compensation	$ 26,000,000
Accounting profits sought by plaintiff as compensation	99,000,000
Monetary damages awarded by court	$ 2,300,000	$ 2,300,000		$ 80,000
Number of Italian trademark registrations to be cancelled by plaintiff			3
Number of European Community trademark registrations to be cancelled by plaintiff			4

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Derivative Financial Instruments

6 Months Ended

Aug. 02, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Hedging Strategy

The Company operates in foreign countries, which exposes it to market risk associated with foreign currency exchange rate fluctuations. The Company has entered into certain forward contracts to hedge the risk of foreign currency rate fluctuations. The Company has elected to apply the hedge accounting rules in accordance with authoritative guidance for certain of these hedges.

The Company’s primary objective is to hedge the variability in forecasted cash flows due to the foreign currency risk. Various transactions that occur primarily in Europe, Canada and South Korea are denominated in U.S. dollars and British pounds and thus are exposed to earnings risk as a result of exchange rate fluctuations when converted to their functional currencies. These types of transactions include U.S. dollar denominated purchases of merchandise and U.S. dollar and British pound denominated intercompany liabilities. In addition, certain operating expenses and tax liabilities are denominated in Swiss francs and are exposed to earnings risk as a result of exchange rate fluctuations when converted to the functional currency.The Company enters into derivative financial instruments, including forward exchange contracts, to offset some but not all of the exchange riskon certain of these anticipated foreign currency transactions.

Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries.

The impact of the credit risk of the counterparties to the derivative contracts is considered in determining the fair value of the foreign currency forward contracts. As of August 2, 2014, credit risk has not had a significant effect on the fair value of the Company’s foreign currency contracts.

The Company also has interest rate swap agreements, which are not designated as hedges for accounting purposes, to effectively convert its floating-rate debt to a fixed-rate basis. The principal objective of these contracts is to eliminate or reduce the variability of the cash flows in interest payments associated with the Company’s variable-rate capital lease obligation, thus reducing the impact of interest rate changes on future interest payment cash flows. Refer to Note 9 for further information. 

Hedge Accounting Policy

U.S. dollar forward contracts are used to hedge forecasted merchandise purchases over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in cost of product sales in the period which approximates the time the hedged merchandise inventory is sold. The Company also hedges forecasted intercompany royalties over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as cash flow hedges, are recorded as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are recognized in other income and expense in the period in which the royalty expense is incurred.

U.S. dollar forward contracts are also used to hedge the net investments of certain of the Company’s international subsidiaries over specific months. Changes in the fair value of these U.S. dollar forward contracts, designated as net investment hedges, are recorded in foreign currency translation adjustment as a component of accumulated other comprehensive income (loss) within stockholders’ equity and are not recognized in earnings until the sale or liquidation of the hedged net investment.

The Company also has foreign currency contracts that are not designated as hedging instruments for accounting purposes. Changes in fair value of foreign currency contracts not designated as hedging instruments are reported in net earnings as part of other income and expense.

Summary of Derivative Instruments

The fair value of derivative instruments in the condensed consolidated balance sheets as of August 2, 2014 and February 1, 2014 was as follows (in thousands):

	Derivative Balance Sheet Location	Fair Value at Aug 2, 2014		Fair Value at Feb 1, 2014
ASSETS:
Derivatives designated as hedging instruments:
Foreign exchange currency contracts:
Cash flow hedges	Other current assets	$	1,430	$	977
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other current assets	1,818		1,139
Total		$	3,248	$	2,116
LIABILITIES:
Derivatives designated as hedging instruments:
Foreign exchange currency contracts:
Cash flow hedges	Accrued expenses	$	237	$	672
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Accrued expenses	105		1,040
Interest rate swaps	Other long-term liabilities	440		581
Total derivatives not designated as hedging instruments		545		1,621
Total		$	782	$	2,293

Derivatives Designated as Hedging Instruments

Cash Flow Hedges

During the six months ended August 2, 2014, the Company purchased U.S. dollar forward contracts in Canada and Europe totaling US$40.4 million and US$38.2 million, respectively, to hedge forecasted merchandise purchases and intercompany royalties that were designated as cash flow hedges.As ofAugust 2, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$66.9 million and US$28.9 million, respectively, which are expected to mature over the next 13 months.

The following table summarizes the gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands): 

	Gain (Loss) Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings(1)	Gain (Loss) Reclassified from Accumulated OCI into Earnings
	Three Months Ended Aug 2, 2014		Three Months Ended Aug 3, 2013				Three Months Ended Aug 2, 2014			Three Months Ended Aug 3, 2013
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	1,866	$	247		Cost of sales	$	(265	)	$	393
Foreign exchange currency contracts	$	1	$	(20	)	Other income/expense	$	(25	)	$	115

	Gain (Loss) Recognized in OCI					Location of Gain (Loss) Reclassified from Accumulated OCI into Earnings(1)	Gain (Loss) Reclassified from Accumulated OCI into Earnings
	Six Months Ended Aug 2, 2014			Six Months Ended Aug 3, 2013			Six Months Ended Aug 2, 2014			Six Months Ended Aug 3, 2013
Derivatives designated as cash flow hedges:
Foreign exchange currency contracts	$	(706	)	$	4,479	Cost of sales	$	(759	)	$	872
Foreign exchange currency contracts	$	(106	)	$	418	Other income/expense	$	(56	)	$	94

 __________________________________

(1) The ineffective portion was immaterial during the three and six months ended August 2, 2014 and August 3, 2013 and was recorded in net earnings and included in interest income/expense.

As of August 2, 2014, accumulated other comprehensive income (loss) included a net unrealized gainof approximately $0.4 million, net of tax, of which $0.3 million will be recognized in cost of product sales or other income over the following 12 months, at the then current values on a pre-tax basis, which can be different than the current quarter-end values.

The following table summarizes net after-tax derivative activity recorded in accumulated other comprehensive income (loss) (in thousands):

	Three Months Ended						Six Months Ended
	Aug 2, 2014			Aug 3, 2013			Aug 2, 2014			Aug 3, 2013
Beginning balance gain (loss)	$	(1,667	)	$	1,918		$	(113	)	$	(1,782	)
Net gains (losses) from changes in cash flow hedges	1,352			64			(706		)	4,152
Net (gains) losses reclassified to earnings	681			(424		)	1,185			(812		)
Ending balance gain	$	366		$	1,558		$	366		$	1,558

At February 1, 2014, the Company had forward contracts outstanding for its European and Canadian operations of US$87.1 millionand US$15.2 million, respectively, that were designated as cash flow hedges.

Derivatives Not Designated as Hedging Instruments

As of August 2, 2014, the Company had euro foreign currency contracts to purchase US$109.4 millionexpected to mature over the next 13 months and Canadian dollar foreign currency contracts to purchase US$11.5 million expected to mature over the next four months.

The following table summarizes the gains (losses) before taxes recognized on the derivative instruments not designated as hedging instruments in other income and expense for the three and six months ended August 2, 2014 and August 3, 2013 (in thousands):

	Location of Gain (Loss) Recognized in Earnings	Gain (Loss) Recognized in Earnings					Gain Recognized in Earnings
		Three Months Ended Aug 2, 2014		Three Months Ended Aug 3, 2013			Six Months Ended Aug 2, 2014		Six Months Ended Aug 3, 2013
Derivatives not designated as hedging instruments:
Foreign exchange currency contracts	Other income/expense	$	3,984	$	(727	)	$	1,195	$	3,049
Interest rate swaps	Other income/expense	$	57	$	118		$	132	$	196

At February 1, 2014, the Company had euro foreign currency contracts to purchase US$111.8 millionand Canadian dollar foreign currency contracts to purchase US$13.8 million.

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Accounts Receivable (Tables)

6 Months Ended

Aug. 02, 2014

Receivables [Abstract]

Schedule of accounts receivable

Accounts receivable is summarized as follows (in thousands):

	Aug 2, 2014		Feb 1, 2014
Trade	$	258,446	$	291,411
Royalty	8,629		16,372
Other	5,172		8,174
	272,247		315,957
Less allowance for doubtful accounts	38,341		39,392
	$	233,906	$	276,565

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Related Party Transactions (Details) (USD $)	0 Months Ended	1 Months Ended	6 Months Ended
	Jan. 28, 2012	Jan. 31, 2014	Aug. 02, 2014	Aug. 03, 2013
Marciano Trusts
Related Party Transactions
Number of leases under lease agreement			4
Lease rent and property tax expense			$ 2,900,000	$ 2,900,000
Marciano Trusts | Minimum
Related Party Transactions
Lease expiration date by year			2015
Marciano Trusts | Maximum
Related Party Transactions
Lease expiration date by year			2020
MPM Financial LLC
Related Party Transactions
Fees paid for aircraft facility			900,000
Marciano Consulting Agreement
Related Party Transactions
Service term	30 years
Consulting agreement term	2 years
Consulting agreement, number of years during the extension period		1 year
Consulting fees paid under the consulting arrangement	500,000.0
Total expenses incurred related to consulting arrangement			300,000	300,000
Harmony Collection LLC
Related Party Transactions
Payment for production agreement			$ 700,000	$ 800,000

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Stockholders' Equity and Redeemable Noncontrolling Interests (Details 4) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Aug. 02, 2014		Aug. 03, 2013		Aug. 02, 2014		Aug. 03, 2013
Reclassification adjustment out of accumulated other comprehensive income (loss)
Less income tax effect	$ 391		$ 84		$ 370		$ 154
Available-for-sale securities	0		0		(87)		0
Less income tax effect	0		0		33		0
Actuarial loss amortization	235		277		469		554
Prior service (credit) cost amortization	(58)		156		(116)		311
Less income tax effect	(68)		(165)		(135)		(330)
Reclassification to net earnings for (gains) losses realized	790		(156)		1,349		(277)
Derivative Financial Instruments Designated as Cash Flow Hedges
Reclassification adjustment out of accumulated other comprehensive income (loss)
Reclassification to net earnings for (gains) losses realized	681		(424)		1,185		(812)
Marketable Securities
Reclassification adjustment out of accumulated other comprehensive income (loss)
Reclassification to net earnings for (gains) losses realized	0		0		(54)		0
SERP
Reclassification adjustment out of accumulated other comprehensive income (loss)
Actuarial loss amortization	235	[1]	277	[1]	469	[1]	554	[1]
Prior service (credit) cost amortization	(58)	[1]	156	[1]	(116)	[1]	311	[1]
Reclassification to net earnings for (gains) losses realized	109		268		218		535
Cost of sales | Derivative Financial Instruments Designated as Cash Flow Hedges
Reclassification adjustment out of accumulated other comprehensive income (loss)
Foreign exchange currency contracts	265		(393)		759		(872)
Other income/expense | Derivative Financial Instruments Designated as Cash Flow Hedges
Reclassification adjustment out of accumulated other comprehensive income (loss)
Foreign exchange currency contracts	25		(115)		56		(94)
Other income/expense | Marketable Securities
Reclassification adjustment out of accumulated other comprehensive income (loss)
Available-for-sale securities	0		0		(87)		0
Income tax expense | Derivative Financial Instruments Designated as Cash Flow Hedges
Reclassification adjustment out of accumulated other comprehensive income (loss)
Less income tax effect	391		84		370		154
Income tax expense | Marketable Securities
Reclassification adjustment out of accumulated other comprehensive income (loss)
Less income tax effect	0		0		33		0
Income tax expense | SERP
Reclassification adjustment out of accumulated other comprehensive income (loss)
Less income tax effect	$ (68)		$ (165)		$ (135)		$ (330)

[1] These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. Refer to Note 13 for further information.

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013
Statement of Comprehensive Income [Abstract]
Net earnings	$ 22,272	$ 40,703	$ 20,085	$ 51,803
Foreign currency translation adjustment
Gains (losses) arising during the period	(19,708)	2,390	2,542	(22,024)
Derivative financial instruments designated as cash flow hedges
Gains (losses) arising during the period	1,867	227	(812)	4,897
Less income tax effect	(515)	(163)	106	(745)
Reclassification to net earnings for (gains) losses realized	290	(508)	815	(966)
Less income tax effect	391	84	370	154
Marketable securities
Losses arising during the period	(40)	(132)	(66)	(33)
Less income tax effect	15	51	25	11
Reclassification to net earnings for gains realized	0	0	(87)	0
Less income tax effect	0	0	33	0
Supplemental Executive Retirement Plan (“SERP”)
Plan amendment	0	4,529	0	4,529
Less income tax effect	0	(1,733)	0	(1,733)
Actuarial loss amortization	235	277	469	554
Prior service (credit) cost amortization	(58)	156	(116)	311
Less income tax effect	(68)	(165)	(135)	(330)
Total comprehensive income	4,681	45,716	23,229	36,428
Less comprehensive income attributable to noncontrolling interests:
Net earnings	318	837	232	2,021
Foreign currency translation adjustment	(284)	(561)	117	(209)
Amounts attributable to noncontrolling interests	34	276	349	1,812
Comprehensive income attributable to Guess, Inc.	$ 4,647	$ 45,440	$ 22,880	$ 34,616

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Accounts Receivable

6 Months Ended

Aug. 02, 2014

Receivables [Abstract]

Accounts Receivable

Accounts Receivable

Accounts receivable is summarized as follows (in thousands):

	Aug 2, 2014		Feb 1, 2014
Trade	$	258,446	$	291,411
Royalty	8,629		16,372
Other	5,172		8,174
	272,247		315,957
Less allowance for doubtful accounts	38,341		39,392
	$	233,906	$	276,565

Accounts receivable consists of trade receivables relating primarily to the Company’s wholesale business in Europe, and to a lesser extent, to its wholesale businesses in North America and Asia, and royalty receivables relating to its licensing operations. The accounts receivable allowance includes allowances for doubtful accounts, wholesale sales returns and wholesale markdowns. Retail sales returns allowances are included in accrued expenses.

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Derivative Financial Instruments (Details 3) (USD $) In Thousands, unless otherwise specified	3 Months Ended				6 Months Ended
	Aug. 02, 2014		Aug. 03, 2013		Aug. 02, 2014		Aug. 03, 2013
Net after-tax derivative activity recorded in accumulated other comprehensive income (loss)
Beginning balance gain (loss)	$ (1,667)		$ 1,918		$ (113)		$ (1,782)
Net gains (losses) from changes in cash flow hedges	1,352		64		(706)		4,152
Net (gains) losses reclassified to earnings	681		(424)		1,185		(812)
Ending balance gain	366		1,558		366		1,558
Cash flow hedges | Cost of sales
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings
Gain (loss) recognized in OCI	1,866		247		(706)		4,479
Gain (loss) reclassified from accumulated OCI to earnings	(265)	[1]	393	[1]	(759)	[1]	872	[1]
Cash flow hedges | Other income/expense
Gains (losses) before taxes recognized on the derivative instruments designated as cash flow hedges in OCI and net earnings
Gain (loss) recognized in OCI	1		(20)		(106)		418
Gain (loss) reclassified from accumulated OCI to earnings	$ (25)	[1]	$ 115	[1]	$ (56)	[1]	$ 94	[1]

[1] The ineffective portion was immaterial during the three and six months ended August 2, 2014 and August 3, 2013 and was recorded in net earnings and included in interest income/expense.

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Inventories (Tables)

6 Months Ended

Aug. 02, 2014

Inventory Disclosure [Abstract]

Schedule of inventories

Inventories consist of the following (in thousands):

	Aug 2, 2014		Feb 1, 2014
Raw materials	$	14,778	$	10,585
Work in progress	175		977
Finished goods	377,434		339,337
	$	392,387	$	350,899

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Stockholders' Equity and Redeemable Noncontrolling Interests (Details) (USD $)	3 Months Ended		6 Months Ended			12 Months Ended	6 Months Ended	12 Months Ended	6 Months Ended	12 Months Ended
	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014	Aug. 03, 2013	Aug. 02, 2014 Guess, Inc. Stockholders’ Equity	Feb. 01, 2014 Guess, Inc. Stockholders’ Equity	Aug. 02, 2014 Nonredeemable Noncontrolling Interests	Feb. 01, 2014 Nonredeemable Noncontrolling Interests	Aug. 02, 2014 Stockholders' Equity, Total	Feb. 01, 2014 Stockholders' Equity, Total
Stockholders' equity reconciliation
Stockholders' equity, balance at the beginning of the period			$ 1,169,986,000		$ 1,154,514,000	$ 1,086,992,000	$ 15,472,000	$ 13,876,000	$ 1,169,986,000	$ 1,100,868,000
Net earnings	22,272,000	40,703,000	20,085,000	51,803,000	19,853,000	153,434,000	232,000	4,277,000	20,085,000	157,711,000
Foreign currency translation adjustment					2,425,000	(17,621,000)	117,000	(804,000)	2,542,000	(18,425,000)
Gain (loss) on derivative financial instruments designated as cash flow hedges, net of income tax					479,000	1,669,000	0	0	479,000	1,669,000
Gain (loss) on marketable securities, net of income tax					(95,000)	(7,000)	0	0	(95,000)	(7,000)
SERP plan amendment, prior service (credit) cost and actuarial valuation gain (loss) and related amortization, net of income tax					218,000	4,619,000	0	0	218,000	4,619,000
Issuance of common stock under stock compensation plans, net of tax effect					(93,000)	2,404,000	0	0	(93,000)	2,404,000
Issuance of stock under Employee Stock Purchase Plan					635,000	980,000	0	0	635,000	980,000
Share-based compensation					7,613,000	13,949,000	0	0	7,613,000	13,949,000
Dividends					(38,486,000)	(68,215,000)	0	0	(38,486,000)	(68,215,000)
Share repurchases						(22,099,000)		0		(22,099,000)
Noncontrolling interest capital contribution						0		0		0
Noncontrolling interest capital distribution						0		(1,877,000)		(1,877,000)
Redeemable noncontrolling interest redemption value adjustment					427,000	(1,591,000)	0	0	427,000	(1,591,000)
Stockholders' equity, balance at the end of the period	1,163,311,000		1,163,311,000		1,147,490,000	1,154,514,000	15,821,000	15,472,000	1,163,311,000	1,169,986,000
Comprehensive income (loss), income tax effect
Gain (loss) on derivative financial instruments designated as cash flow hedges, tax effect									476,000	(237,000)
Gain (loss) on marketable securities, tax effect									58,000	4,000
SERP plan amendment, prior service (credit) cost and actuarial valuation gain (loss) and related amortization, tax effect									$ (135,000)	$ (2,963,000)

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Fair Value Measurements

6 Months Ended

Aug. 02, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Authoritative guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance establishes a fair value hierarchy, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date.

Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e. interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs would be based on the best information available, including the Company’s own data.

The following table presents the fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of August 2, 2014 and February 1, 2014 (in thousands):

	Fair Value Measurements at Aug 2, 2014								Fair Value Measurements at Feb 1, 2014
Recurring Fair Value Measures	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Foreign exchange currency contracts	$	—	$	3,248	$	—	$	3,248	$	—	$	2,116	$	—	$	2,116
Available-for-sale securities	5,066		—		—		5,066		5,732		—		—		5,732
Total	$	5,066	$	3,248	$	—	$	8,314	$	5,732	$	2,116	$	—	$	7,848
Liabilities:
Foreign exchange currency contracts	$	—	$	342	$	—	$	342	$	—	$	1,712	$	—	$	1,712
Interest rate swap	—		440		—		440		—		581		—		581
Deferred compensation obligations	—		8,305		—		8,305		—		7,498		—		7,498
Total	$	—	$	9,087	$	—	$	9,087	$	—	$	9,791	$	—	$	9,791

There were no transfers of financial instruments between the three levels of fair value hierarchy during the six months ended August 2, 2014 or during the year ended February 1, 2014.

The fair values of the Company’s available-for-sale securities are based on quoted prices. The fair value of the interest rate swaps are based upon inputs corroborated by observable market data. Foreign exchange forward contracts are entered into by the Company principally to hedge the future payment of inventory and intercompany transactions by non-U.S. subsidiaries. Periodically, the Company may also use foreign currency forward contracts to hedge the translation and economic exposures related to its net investments in certain of its international subsidiaries. The fair values of the Company’s foreign exchange forward contracts are based on quoted foreign exchange forward rates at the reporting date. Deferred compensation obligations to employees are adjusted based on changes in the fair value of the underlying employee-directed investments. Fair value of these obligations is based upon inputs corroborated by observable market data.

Available-for-sale securities are recorded at fair value and are included in short-term investments and other assets in the accompanying condensed consolidated balance sheets depending on their respective maturity dates. At August 2, 2014, available-for-sale securities consisted of $5.0 million of corporate bonds which mature in September 2014 and $0.1 million of marketable equity securities. During the six months ended August 2, 2014, the Company received proceeds of $0.6 million from the sale of marketable equity securities which were classified as available-for-sale securities. The sale of marketable equity securities was made during the three months ended May 4, 2013. The cost of securities sold was based on the specific identification method. Gains recognized during the six months ended August 2, 2014 were $0.1 million as a result of this sale and were included in other income and expense. Unrealized gains (losses), net of taxes, are included as a component of stockholders’ equity and comprehensive income (loss). The accumulated unrealized gains, net of taxes, included in accumulated other comprehensive income (loss) related to available-for-sale securities owned by the Company at August 2, 2014 were minimal.

At February 1, 2014, available-for-sale securities consisted of $5.1 million of corporate bonds and $0.6 million of marketable equity securities. The accumulated unrealized gains, net of taxes, included in accumulated other comprehensive income (loss) related to available-for-sale securities owned by the Company at February 1, 2014 were $0.1 million.

The carrying amount of the Company’s remaining financial instruments, which principally include cash and cash equivalents, trade receivables, accounts payable and accrued expenses, approximates fair value due to the relatively short maturity of such instruments. The fair values of the Company’s debt instruments (see Note 9) are based on the amount of future cash flows associated with each instrument discounted using the Company’s incremental borrowing rate. At August 2, 2014 and February 1, 2014, the carrying value of all financial instruments was not materially different from fair value, as the interest rates on variable-rate debt including the capital lease obligation approximated rates currently available to the Company. 

Long-Lived Assets

Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment quarterly or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company considers each individual store as an asset group for impairment testing, which is the lowest level at which individual cash flows can be identified. The asset group includes store leasehold improvements, furniture, fixtures and equipment, computer hardware and software and certain long-term security deposits and lease acquisition costs. The Company reviews retail stores for impairment risk once the locations have been opened for at least one year, or sooner as changes in circumstances require. The Company believes that waiting one year allows a store to reach a maturity level where a more comprehensive analysis of financial performance can be performed.

An asset is considered to be impaired if the Company determines that the carrying value may not be recoverable based upon its assessment of the asset’s ability to continue to generate earnings from operations and positive cash flow in future periods or if significant changes in the Company’s strategic business objectives and utilization of the assets occurred. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the estimated fair value, which is determined based on discounted future cash flows. The impairment loss calculations require management to apply judgment in estimating future cash flows and the discount rates that reflect the risk inherent in future cash flows. Future expected cash flows for store assets are based on management’s estimates of future cash flows over the remaining lease period or expected life, if shorter. The Company considers historical trends, expected future business trends and other factors when estimating each store’s future cash flow. The Company also considers factors such as: the local environment for each store location, including mall traffic and competition; the Company’s ability to successfully implement strategic initiatives; and the ability to control variable costs such as cost of sales and payroll and, in some cases, renegotiate lease costs. The estimated cash flows used for this nonrecurring fair value measurement are considered a Level 3 input as defined above. If actual results are not consistent with the assumptions and judgments used in estimating future cash flows and asset fair values, there may be additional exposure to future impairment losses that could be material to the Company’s results of operations.

The Company recorded impairment charges of $4.6 million and $4.8 million during the three and six months ended August 2, 2014, respectively, and $2.1 million and $3.1 million during the three and six months ended August 3, 2013, respectively, related primarily to the full impairment of certain under-performing retail stores in North America and Europe. These impairment charges, which exclude impairment charges incurred during the three and six months ended August 3, 2013 related to restructuring activities, were included in selling, general and administrative expenses in the Company’s condensed consolidated statements of incomefor each of the respective periods. Refer to Note 6 for more information regarding impairment charges related to restructuring activities.