Guess has used Centric software to help reduce markdowns and increase stock availability through advanced analytics.
Centric, a Silicon Valley-based solutions provider, helped Guess transfer inventory online when brick-and-mortar shopping was disrupted by lockdowns.Guess achieved improved results almost immediately.
Pre-Covid operating margin was five percent at the end of fiscal year 2020 but had leapt to 12 percent by fiscal 2021. There was an increase of 250 basis points due to lower promotional activities alone. Operating in about 30 countries in Europe with four 8,000-SKU collections each year, and approximately 1,000 directly operated stores worldwide, the company could no longer rely on its outdated system of using Excel spreadsheets to plan merchandising and buying.
A spreadsheet-based program was no longer powerful enough to handle the sheer amount of complexity and information. So the decision was taken to go for planning software from Centric. Excess inventory has plagued many companies of late due to a lack of sales and over-ordering in an attempt to battle ongoing global supplychain delays. The new software kept inventory under control and improved operating margins by responding more quickly to marketplace disruptions, moving premium product lines onshore and reducing overstock and discounting.