Los Angeles, CA, July 5, 2001 -- Guess?, Inc. (NYSE: GES) today reported that total June retail sales were $23.9 million for the four weeks ended June 30, 2001, a decrease of 4.8% from sales of $25.1 million for the four weeks ended July 1, 2000. Comparable store sales for the June period decreased 17.6%. Comparable store sales for the Company's full priced retail stores decreased 18.3%, and comparable store sales at the factory outlet stores decreased 16.0%.

Total retail sales for the second quarter ended June 30, 2001 decreased slightly to $83.2 million compared to $84.8 million for the second quarter of 2000. Comparable store sales decreased 16.3% during the second quarter of 2001.

The Company also announced that due to general weakness in both the wholesale and retail channels, it now expects its earnings per share for the second quarter of 2001 to be in the range of $0.02 - $0.04. Guess? will announce its second quarter results during the week of July 30, 2001, at which time it will provide guidance regarding its outlook for the second half of 2001.

Carlos Alberini, President and Chief Operating Officer, said, “We have made considerable progress in reducing our operating costs and inventory levels and in implementing key business initiatives. However, sales in our retail and wholesale businesses have been disappointing, particularly in June, reflecting in large part the difficult retail and economic environment.

“We continue to take steps to best position Guess? within this climate. Our cost cutting efforts are expected to result in a __% decline in SG&A expense for the quarter despite a 15% larger store base, and we are beginning to see margins stabilize in both our wholesale and retail businesses. We will continue to build on the strides we have made, focusing on carefully managing expenses and inventory and fine-tuning our product lines to address weakness in some areas such as men's. We expect conditions will remain challenging, but we are confident that we are taking the right steps to position Guess? for successful growth and enhanced profitability over the long term,” Mr. Alberini concluded.

Guess ?, Inc. designs, markets, distributes and licenses one of the world's leading lifestyle collections of contemporary apparel, accessories and related consumer products.