|
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)
|
Large accelerated filer
x
|
Accelerated filer
o
|
|
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
(Do not check if a smaller reporting company)
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
|
|||||||
|
Aug 3,
2013 |
|
Feb 2,
2013 |
||||
|
(unaudited)
|
|
|
||||
ASSETS
|
|
|
|
|
|
||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
343,725
|
|
|
$
|
329,021
|
|
Short-term investments
|
5,022
|
|
|
6,906
|
|
||
Accounts receivable, net
|
271,826
|
|
|
316,863
|
|
||
Inventories
|
400,141
|
|
|
369,712
|
|
||
Other current assets
|
108,381
|
|
|
84,723
|
|
||
Total current assets
|
1,129,095
|
|
|
1,107,225
|
|
||
Property and equipment, net
|
341,378
|
|
|
355,729
|
|
||
Goodwill
|
38,661
|
|
|
39,287
|
|
||
Other intangible assets, net
|
14,611
|
|
|
16,032
|
|
||
Long-term deferred tax assets
|
40,711
|
|
|
43,063
|
|
||
Other assets
|
116,547
|
|
|
152,170
|
|
||
|
$
|
1,681,003
|
|
|
$
|
1,713,506
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
||
Current liabilities:
|
|
|
|
|
|
||
Current portion of capital lease obligations and borrowings
|
$
|
3,015
|
|
|
$
|
1,901
|
|
Accounts payable
|
198,388
|
|
|
191,143
|
|
||
Accrued expenses
|
171,204
|
|
|
191,922
|
|
||
Total current liabilities
|
372,607
|
|
|
384,966
|
|
||
Capital lease obligations
|
7,210
|
|
|
8,314
|
|
||
Deferred rent and lease incentives
|
91,601
|
|
|
94,218
|
|
||
Other long-term liabilities
|
115,919
|
|
|
121,996
|
|
||
|
587,337
|
|
|
609,494
|
|
||
Redeemable noncontrolling interests
|
3,996
|
|
|
3,144
|
|
||
|
|
|
|
||||
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 139,146,044 and 138,812,082 shares, outstanding 84,846,397 and 85,367,984 shares, at August 3, 2013 and February 2, 2013, respectively
|
848
|
|
|
853
|
|
||
Paid-in capital
|
431,773
|
|
|
423,387
|
|
||
Retained earnings
|
1,178,601
|
|
|
1,162,982
|
|
||
Accumulated other comprehensive loss
|
(17,627
|
)
|
|
(2,461
|
)
|
||
Treasury stock, 54,299,647 and 53,444,098 shares at August 3, 2013 and February 2, 2013, respectively
|
(519,613
|
)
|
|
(497,769
|
)
|
||
Guess?, Inc. stockholders’ equity
|
1,073,982
|
|
|
1,086,992
|
|
||
Nonredeemable noncontrolling interests
|
15,688
|
|
|
13,876
|
|
||
Total stockholders’ equity
|
1,089,670
|
|
|
1,100,868
|
|
||
|
$
|
1,681,003
|
|
|
$
|
1,713,506
|
|
GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Aug 3,
2013 |
|
Jul 28,
2012 |
|
Aug 3,
2013 |
|
Jul 28,
2012 |
||||||||
Product sales
|
$
|
611,894
|
|
|
$
|
608,383
|
|
|
$
|
1,130,558
|
|
|
$
|
1,158,749
|
|
Net royalties
|
27,118
|
|
|
27,010
|
|
|
57,368
|
|
|
55,910
|
|
||||
Net revenue
|
639,012
|
|
|
635,393
|
|
|
1,187,926
|
|
|
1,214,659
|
|
||||
Cost of product sales
|
390,480
|
|
|
383,833
|
|
|
741,968
|
|
|
728,023
|
|
||||
Gross profit
|
248,532
|
|
|
251,560
|
|
|
445,958
|
|
|
486,636
|
|
||||
Selling, general and administrative expenses
|
181,623
|
|
|
194,259
|
|
|
365,387
|
|
|
390,194
|
|
||||
Restructuring charges
|
6,129
|
|
|
—
|
|
|
8,466
|
|
|
—
|
|
||||
Earnings from operations
|
60,780
|
|
|
57,301
|
|
|
72,105
|
|
|
96,442
|
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
(365
|
)
|
|
(397
|
)
|
|
(914
|
)
|
|
(781
|
)
|
||||
Interest income
|
475
|
|
|
815
|
|
|
809
|
|
|
1,509
|
|
||||
Other income (expense), net
|
(139
|
)
|
|
5,442
|
|
|
5,318
|
|
|
6,010
|
|
||||
|
(29
|
)
|
|
5,860
|
|
|
5,213
|
|
|
6,738
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Earnings before income tax expense
|
60,751
|
|
|
63,161
|
|
|
77,318
|
|
|
103,180
|
|
||||
Income tax expense
|
20,048
|
|
|
20,212
|
|
|
25,515
|
|
|
33,018
|
|
||||
Net earnings
|
40,703
|
|
|
42,949
|
|
|
51,803
|
|
|
70,162
|
|
||||
Net earnings attributable to noncontrolling interests
|
837
|
|
|
50
|
|
|
2,021
|
|
|
617
|
|
||||
Net earnings attributable to Guess?, Inc.
|
$
|
39,866
|
|
|
$
|
42,899
|
|
|
$
|
49,782
|
|
|
$
|
69,545
|
|
|
|
|
|
|
|
|
|
||||||||
Net earnings per common share attributable to common stockholders (Note 2):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.47
|
|
|
$
|
0.49
|
|
|
$
|
0.59
|
|
|
$
|
0.78
|
|
Diluted
|
$
|
0.47
|
|
|
$
|
0.49
|
|
|
$
|
0.58
|
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding attributable to common stockholders (Note 2):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
84,080
|
|
|
86,972
|
|
|
84,331
|
|
|
88,081
|
|
||||
Diluted
|
84,347
|
|
|
87,237
|
|
|
84,563
|
|
|
88,384
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Dividends declared per common share
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
0.40
|
|
|
$
|
0.40
|
|
GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in thousands)
(unaudited)
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Aug 3,
2013 |
|
Jul 28,
2012 |
|
Aug 3,
2013 |
|
Jul 28,
2012 |
||||||||
Net earnings
|
$
|
40,703
|
|
|
$
|
42,949
|
|
|
$
|
51,803
|
|
|
$
|
70,162
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustment
|
|
|
|
|
|
|
|
||||||||
Gains (losses) arising during the period
|
2,504
|
|
|
(52,888
|
)
|
|
(29,507
|
)
|
|
(49,247
|
)
|
||||
Less income tax effect
|
(114
|
)
|
|
11,375
|
|
|
7,483
|
|
|
10,454
|
|
||||
Derivative financial instruments designated as cash flow hedges
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gains arising during the period
|
227
|
|
|
8,314
|
|
|
4,897
|
|
|
7,440
|
|
||||
Less income tax effect
|
(163
|
)
|
|
(1,053
|
)
|
|
(745
|
)
|
|
(673
|
)
|
||||
Reclassification to net income for gains realized
|
(508
|
)
|
|
(832
|
)
|
|
(966
|
)
|
|
(3,453
|
)
|
||||
Less income tax effect
|
84
|
|
|
99
|
|
|
154
|
|
|
420
|
|
||||
Marketable securities
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gains (losses) arising during the period
|
(132
|
)
|
|
(135
|
)
|
|
(33
|
)
|
|
97
|
|
||||
Less income tax effect
|
51
|
|
|
52
|
|
|
11
|
|
|
(37
|
)
|
||||
Supplemental Executive Retirement Plan (“SERP”)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Plan amendment
|
4,529
|
|
|
—
|
|
|
4,529
|
|
|
—
|
|
||||
Less income tax effect
|
(1,733
|
)
|
|
—
|
|
|
(1,733
|
)
|
|
—
|
|
||||
Actuarial loss amortization
|
277
|
|
|
835
|
|
|
554
|
|
|
1,670
|
|
||||
Prior service cost amortization
|
156
|
|
|
155
|
|
|
311
|
|
|
310
|
|
||||
Less income tax effect
|
(165
|
)
|
|
(378
|
)
|
|
(330
|
)
|
|
(756
|
)
|
||||
Total comprehensive income
|
45,716
|
|
|
8,493
|
|
|
36,428
|
|
|
36,387
|
|
||||
Less comprehensive income attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings
|
837
|
|
|
50
|
|
|
2,021
|
|
|
617
|
|
||||
Foreign currency translation adjustment
|
(561
|
)
|
|
(521
|
)
|
|
(209
|
)
|
|
(519
|
)
|
||||
Amounts attributable to noncontrolling interests
|
276
|
|
|
(471
|
)
|
|
1,812
|
|
|
98
|
|
||||
Comprehensive income attributable to Guess?, Inc.
|
$
|
45,440
|
|
|
$
|
8,964
|
|
|
$
|
34,616
|
|
|
$
|
36,289
|
|
GUESS?, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
|||||||
|
Six Months Ended
|
||||||
|
Aug 3,
2013 |
|
Jul 28,
2012 |
||||
Cash flows from operating activities:
|
|
|
|
|
|
||
Net earnings
|
$
|
51,803
|
|
|
$
|
70,162
|
|
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
|
|
|
||
Depreciation and amortization of property and equipment
|
43,327
|
|
|
42,369
|
|
||
Amortization of intangible assets
|
981
|
|
|
1,147
|
|
||
Share-based compensation expense
|
5,999
|
|
|
8,643
|
|
||
Unrealized forward contract gains
|
(1,601
|
)
|
|
(2,992
|
)
|
||
Net loss on disposition of property and equipment
|
7,290
|
|
|
386
|
|
||
Other items, net
|
(3,215
|
)
|
|
1,491
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||
Accounts receivable
|
38,950
|
|
|
(10,708
|
)
|
||
Inventories
|
(33,156
|
)
|
|
(55,831
|
)
|
||
Prepaid expenses and other assets
|
4,752
|
|
|
3,268
|
|
||
Accounts payable and accrued expenses
|
(15,890
|
)
|
|
(22,768
|
)
|
||
Deferred rent and lease incentives
|
(2,354
|
)
|
|
3,522
|
|
||
Other long-term liabilities
|
5,281
|
|
|
5,964
|
|
||
Net cash provided by operating activities
|
102,167
|
|
|
44,653
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of property and equipment
|
(40,445
|
)
|
|
(49,966
|
)
|
||
Changes in other long-term assets
|
7,804
|
|
|
(7,946
|
)
|
||
Proceeds from maturity of investment
|
1,826
|
|
|
—
|
|
||
Acquisition of businesses, net of cash acquired
|
(653
|
)
|
|
(15,980
|
)
|
||
Net cash settlement of forward contracts
|
1,468
|
|
|
4,375
|
|
||
Net cash used in investing activities
|
(30,000
|
)
|
|
(69,517
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Proceeds from short-term borrowings
|
1,294
|
|
|
—
|
|
||
Repayment of borrowings and capital lease obligations
|
(1,002
|
)
|
|
(970
|
)
|
||
Dividends paid
|
(34,100
|
)
|
|
(36,095
|
)
|
||
Purchase of redeemable noncontrolling interest
|
—
|
|
|
(4,185
|
)
|
||
Noncontrolling interest capital contributions
|
521
|
|
|
—
|
|
||
Noncontrolling interest capital distributions
|
—
|
|
|
(3,086
|
)
|
||
Issuance of common stock, net of nonvested award repurchases
|
3,259
|
|
|
1,760
|
|
||
Excess tax benefits from share-based compensation
|
221
|
|
|
45
|
|
||
Purchase of treasury stock
|
(22,099
|
)
|
|
(140,262
|
)
|
||
Net cash used in financing activities
|
(51,906
|
)
|
|
(182,793
|
)
|
||
Effect of exchange rates on cash and cash equivalents
|
(5,557
|
)
|
|
(12,211
|
)
|
||
Net change in cash and cash equivalents
|
14,704
|
|
|
(219,868
|
)
|
||
Cash and cash equivalents at beginning of period
|
329,021
|
|
|
491,805
|
|
||
Cash and cash equivalents at end of period
|
$
|
343,725
|
|
|
$
|
271,937
|
|
|
|
|
|
||||
Supplemental cash flow data:
|
|
|
|
|
|
||
Interest paid
|
$
|
537
|
|
|
$
|
468
|
|
Income taxes paid
|
$
|
50,986
|
|
|
$
|
45,459
|
|
(1)
|
Basis of Presentation
|
(2)
|
Earnings Per Share
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Aug 3, 2013
|
|
Jul 28, 2012
|
|
Aug 3, 2013
|
|
Jul 28, 2012
|
||||||||
Net earnings attributable to Guess?, Inc.
|
$
|
39,866
|
|
|
$
|
42,899
|
|
|
$
|
49,782
|
|
|
$
|
69,545
|
|
Less net earnings attributable to nonvested restricted stockholders
|
351
|
|
|
298
|
|
|
410
|
|
|
460
|
|
||||
Net earnings attributable to common stockholders
|
$
|
39,515
|
|
|
$
|
42,601
|
|
|
$
|
49,372
|
|
|
$
|
69,085
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares used in basic computations
|
84,080
|
|
|
86,972
|
|
|
84,331
|
|
|
88,081
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Stock options and restricted stock units
|
267
|
|
|
265
|
|
|
232
|
|
|
303
|
|
||||
Weighted average common shares used in diluted computations
|
84,347
|
|
|
87,237
|
|
|
84,563
|
|
|
88,384
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net earnings per common share attributable to common stockholders:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
|
$
|
0.47
|
|
|
$
|
0.49
|
|
|
$
|
0.59
|
|
|
$
|
0.78
|
|
Diluted
|
$
|
0.47
|
|
|
$
|
0.49
|
|
|
$
|
0.58
|
|
|
$
|
0.78
|
|
(3)
|
Stockholders
’
Equity and Redeemable Noncontrolling Interests
|
|
Stockholders’ Equity
|
|
|
||||||||||||
|
Guess?, Inc.
Stockholders’
Equity
|
|
Nonredeemable
Noncontrolling
Interests
|
|
Total
|
|
Redeemable
Noncontrolling
Interests
|
||||||||
Balances at January 28, 2012
|
$
|
1,175,630
|
|
|
$
|
18,635
|
|
|
$
|
1,194,265
|
|
|
$
|
8,293
|
|
Net earnings
|
178,744
|
|
|
2,742
|
|
|
181,486
|
|
|
—
|
|
||||
Foreign currency translation adjustment, net of income tax of ($13,769)
|
22,025
|
|
|
322
|
|
|
22,347
|
|
|
65
|
|
||||
Loss on derivative financial instruments designated as cash flow hedges, net of income tax of $1,056
|
(6,041
|
)
|
|
—
|
|
|
(6,041
|
)
|
|
—
|
|
||||
Gain on marketable securities, net of income tax of ($85)
|
139
|
|
|
—
|
|
|
139
|
|
|
—
|
|
||||
SERP prior service cost and actuarial valuation gain (loss) and related amortization, net of income tax of ($2,855)
|
4,613
|
|
|
—
|
|
|
4,613
|
|
|
—
|
|
||||
Issuance of common stock under stock compensation plans, net of tax effect
|
1,362
|
|
|
—
|
|
|
1,362
|
|
|
—
|
|
||||
Issuance of stock under ESPP
|
1,186
|
|
|
—
|
|
|
1,186
|
|
|
—
|
|
||||
Share-based compensation
|
16,285
|
|
|
—
|
|
|
16,285
|
|
|
—
|
|
||||
Dividends
|
(172,792
|
)
|
|
—
|
|
|
(172,792
|
)
|
|
—
|
|
||||
Share repurchases
|
(140,262
|
)
|
|
—
|
|
|
(140,262
|
)
|
|
—
|
|
||||
Purchase of redeemable noncontrolling interest
|
4,857
|
|
|
(4,857
|
)
|
|
—
|
|
|
(4,185
|
)
|
||||
Noncontrolling interest capital contribution
|
—
|
|
|
1,488
|
|
|
1,488
|
|
|
—
|
|
||||
Noncontrolling interest capital distribution
|
—
|
|
|
(4,237
|
)
|
|
(4,237
|
)
|
|
—
|
|
||||
Redeemable noncontrolling interest redemption value adjustment
|
1,246
|
|
|
(217
|
)
|
|
1,029
|
|
|
(1,029
|
)
|
||||
Balances at February 2, 2013
|
$
|
1,086,992
|
|
|
$
|
13,876
|
|
|
$
|
1,100,868
|
|
|
$
|
3,144
|
|
Net earnings
|
49,782
|
|
|
2,021
|
|
|
51,803
|
|
|
—
|
|
||||
Foreign currency translation adjustment, net of income tax of $7,483
|
(21,815
|
)
|
|
(209
|
)
|
|
(22,024
|
)
|
|
(79
|
)
|
||||
Gain on derivative financial instruments designated as cash flow hedges, net of income tax of ($591)
|
3,340
|
|
|
—
|
|
|
3,340
|
|
|
—
|
|
||||
Loss on marketable securities, net of income tax of $11
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
||||
SERP plan amendment, prior service cost and actuarial valuation amortization, net of income tax of ($2,063)
|
3,331
|
|
|
—
|
|
|
3,331
|
|
|
—
|
|
||||
Issuance of common stock under stock compensation plans, net of tax effect
|
2,468
|
|
|
—
|
|
|
2,468
|
|
|
—
|
|
||||
Issuance of stock under ESPP
|
565
|
|
|
—
|
|
|
565
|
|
|
—
|
|
||||
Share-based compensation
|
5,999
|
|
|
—
|
|
|
5,999
|
|
|
—
|
|
||||
Dividends
|
(34,149
|
)
|
|
—
|
|
|
(34,149
|
)
|
|
—
|
|
||||
Share repurchases
|
(22,099
|
)
|
|
—
|
|
|
(22,099
|
)
|
|
—
|
|
||||
Noncontrolling interest capital contribution
|
—
|
|
|
—
|
|
|
—
|
|
|
521
|
|
||||
Redeemable noncontrolling interest redemption value adjustment
|
(410
|
)
|
|
—
|
|
|
(410
|
)
|
|
410
|
|
||||
Balances at August 3, 2013
|
$
|
1,073,982
|
|
|
$
|
15,688
|
|
|
$
|
1,089,670
|
|
|
$
|
3,996
|
|
|
Foreign currency translation adjustment
|
|
Derivative financial instruments designated as cash flow hedges
|
|
Marketable securities
|
|
SERP
|
|
Total
|
||||||||||
Balances 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 income for (gains) losses realized
|
—
|
|
|
(424
|
)
|
|
—
|
|
|
268
|
|
|
(156
|
)
|
|||||
Net other comprehensive income (loss)
|
2,951
|
|
|
(360
|
)
|
|
(81
|
)
|
|
3,064
|
|
|
5,574
|
|
|||||
Balances at August 3, 2013
|
$
|
(11,197
|
)
|
|
$
|
1,558
|
|
|
$
|
88
|
|
|
$
|
(8,076
|
)
|
|
$
|
(17,627
|
)
|
|
Foreign currency translation adjustment
|
|
Derivative financial instruments designated as cash flow hedges
|
|
Marketable securities
|
|
SERP
|
|
Total
|
||||||||||
Balances 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 income for (gains) losses realized
|
—
|
|
|
(812
|
)
|
|
—
|
|
|
535
|
|
|
(277
|
)
|
|||||
Net other comprehensive income (loss)
|
(21,815
|
)
|
|
3,340
|
|
|
(22
|
)
|
|
3,331
|
|
|
(15,166
|
)
|
|||||
Balances at August 3, 2013
|
$
|
(11,197
|
)
|
|
$
|
1,558
|
|
|
$
|
88
|
|
|
$
|
(8,076
|
)
|
|
$
|
(17,627
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
|
Location of
(Gain)/Loss
Reclassified from
Accumulated OCI
into Income
|
||||
|
Aug 3, 2013
|
|
Aug 3, 2013
|
|
|||||
Derivative financial instruments designated as cash flow hedges:
|
|
|
|
|
|
||||
Foreign exchange currency contracts
|
$
|
(393
|
)
|
|
$
|
(872
|
)
|
|
Cost of sales
|
Foreign exchange currency contracts
|
(115
|
)
|
|
(94
|
)
|
|
Other income/expense
|
||
Less income tax effect
|
84
|
|
|
154
|
|
|
Income tax expense
|
||
|
(424
|
)
|
|
(812
|
)
|
|
|
||
SERP:
|
|
|
|
|
|
||||
Actuarial loss amortization
|
277
|
|
|
554
|
|
|
(1)
|
||
Prior service cost amortization
|
156
|
|
|
311
|
|
|
(1)
|
||
Less income tax effect
|
(165
|
)
|
|
(330
|
)
|
|
Income tax expense
|
||
|
268
|
|
|
535
|
|
|
|
||
Total reclassifications during the period ended August 3, 2013
|
$
|
(156
|
)
|
|
$
|
(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.
|
(4)
|
Accounts Receivable
|
(5)
|
Inventories
|
|
Aug 3, 2013
|
|
Feb 2, 2013
|
||||
Raw materials
|
$
|
20,057
|
|
|
$
|
14,706
|
|
Work in progress
|
1,969
|
|
|
1,765
|
|
||
Finished goods
|
378,115
|
|
|
353,241
|
|
||
|
$
|
400,141
|
|
|
$
|
369,712
|
|
(6)
|
Restructuring Charges
|
|
Three Months Ended Aug 3, 2013
|
||||||||||
|
Severance
|
|
Impairment and Lease Termination
|
|
Total
|
||||||
Beginning balance
|
$
|
1,368
|
|
|
$
|
—
|
|
|
$
|
1,368
|
|
Charges to operations
|
4,092
|
|
|
2,037
|
|
|
6,129
|
|
|||
Non-cash write-offs
|
—
|
|
|
(1,921
|
)
|
|
(1,921
|
)
|
|||
Cash payments
|
(1,244
|
)
|
|
(97
|
)
|
|
(1,341
|
)
|
|||
Foreign currency and other adjustments
|
160
|
|
|
(15
|
)
|
|
145
|
|
|||
Ending balance
|
$
|
4,376
|
|
|
$
|
4
|
|
|
$
|
4,380
|
|
|
Six Months Ended Aug 3, 2013
|
||||||||||
|
Severance
|
|
Impairment and Lease Termination
|
|
Total
|
||||||
Beginning balance
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Charges to operations
|
7,239
|
|
|
1,227
|
|
|
8,466
|
|
|||
Non-cash write-offs
|
—
|
|
|
(1,111
|
)
|
|
(1,111
|
)
|
|||
Cash payments
|
(2,992
|
)
|
|
(97
|
)
|
|
(3,089
|
)
|
|||
Foreign currency and other adjustments
|
129
|
|
|
(15
|
)
|
|
114
|
|
|||
Ending balance
|
$
|
4,376
|
|
|
$
|
4
|
|
|
$
|
4,380
|
|
(7)
|
Income Taxes
|
(8)
|
Segment Information
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Aug 3, 2013
|
|
Jul 28, 2012
|
|
Aug 3, 2013
|
|
Jul 28, 2012
|
||||||||
Net revenue:
|
|
|
|
|
|
|
|
|
|
|
|
||||
North American Retail
|
$
|
254,313
|
|
|
$
|
253,012
|
|
|
$
|
492,624
|
|
|
$
|
504,810
|
|
Europe
|
250,372
|
|
|
246,917
|
|
|
415,764
|
|
|
436,732
|
|
||||
Asia
|
65,852
|
|
|
66,826
|
|
|
136,984
|
|
|
131,661
|
|
||||
North American Wholesale
|
41,357
|
|
|
41,628
|
|
|
85,186
|
|
|
85,546
|
|
||||
Licensing
|
27,118
|
|
|
27,010
|
|
|
57,368
|
|
|
55,910
|
|
||||
Total net revenue
|
$
|
639,012
|
|
|
$
|
635,393
|
|
|
$
|
1,187,926
|
|
|
$
|
1,214,659
|
|
Earnings (loss) from operations:
|
|
|
|
|
|
|
|
|
|
|
|
||||
North American Retail
|
$
|
10,390
|
|
|
$
|
16,761
|
|
|
$
|
6,157
|
|
|
$
|
33,751
|
|
Europe
|
39,275
|
|
|
24,622
|
|
|
34,057
|
|
|
37,103
|
|
||||
Asia
|
5,039
|
|
|
4,019
|
|
|
12,003
|
|
|
9,894
|
|
||||
North American Wholesale
|
8,478
|
|
|
7,701
|
|
|
17,127
|
|
|
17,047
|
|
||||
Licensing
|
25,101
|
|
|
22,869
|
|
|
51,305
|
|
|
47,455
|
|
||||
Corporate Overhead
|
(21,374
|
)
|
|
(18,671
|
)
|
|
(40,078
|
)
|
|
(48,808
|
)
|
||||
Restructuring Charges
|
(6,129
|
)
|
|
—
|
|
|
(8,466
|
)
|
|
—
|
|
||||
Total earnings from operations
|
$
|
60,780
|
|
|
$
|
57,301
|
|
|
$
|
72,105
|
|
|
$
|
96,442
|
|
(9)
|
Borrowings and Capital Lease Obligations
|
|
Aug 3, 2013
|
|
Feb 2, 2013
|
||||
European capital lease, maturing quarterly through 2016
|
$
|
8,924
|
|
|
$
|
10,121
|
|
Other
|
1,301
|
|
|
94
|
|
||
|
10,225
|
|
|
10,215
|
|
||
Less current installments
|
3,015
|
|
|
1,901
|
|
||
Long-term capital lease obligations
|
$
|
7,210
|
|
|
$
|
8,314
|
|
(10)
|
Share-Based Compensation
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Aug 3, 2013
|
|
|
Jul 28, 2012
|
|
Aug 3, 2013
|
|
Jul 28, 2012
|
|||||||
Stock options
|
$
|
684
|
|
|
$
|
1,293
|
|
|
$
|
1,257
|
|
|
$
|
2,481
|
|
Nonvested stock awards/units
|
2,994
|
|
|
2,471
|
|
|
4,599
|
|
|
5,980
|
|
||||
Employee Stock Purchase Plan
|
73
|
|
|
77
|
|
|
143
|
|
|
182
|
|
||||
Total share-based compensation expense
|
$
|
3,751
|
|
|
$
|
3,841
|
|
|
$
|
5,999
|
|
|
$
|
8,643
|
|
(11)
|
Related Party Transactions
|
(12)
|
Commitments and Contingencies
|
(13)
|
Supplemental Executive Retirement Plan
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Aug 3, 2013
|
|
Jul 28, 2012
|
|
Aug 3, 2013
|
|
Jul 28, 2012
|
||||||||
Interest cost
|
$
|
586
|
|
|
$
|
598
|
|
|
$
|
1,172
|
|
|
$
|
1,196
|
|
Net amortization of unrecognized prior service cost
|
156
|
|
|
155
|
|
|
311
|
|
|
310
|
|
||||
Net amortization of actuarial losses
|
277
|
|
|
835
|
|
|
554
|
|
|
1,670
|
|
||||
Net periodic defined benefit pension cost
|
$
|
1,019
|
|
|
$
|
1,588
|
|
|
$
|
2,037
|
|
|
$
|
3,176
|
|
(14)
|
Fair Value Measurements
|
|
|
Fair Value Measurements at Aug 3, 2013
|
|
Fair Value Measurements at Feb 2, 2013
|
||||||||||||||||||||||||||||
Recurring Fair Value Measures
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange currency contracts
|
|
$
|
—
|
|
|
$
|
2,025
|
|
|
$
|
—
|
|
|
$
|
2,025
|
|
|
$
|
—
|
|
|
$
|
1,358
|
|
|
$
|
—
|
|
|
$
|
1,358
|
|
Available-for-sale securities
|
|
10,738
|
|
|
—
|
|
|
—
|
|
|
10,738
|
|
|
12,630
|
|
|
—
|
|
|
—
|
|
|
12,630
|
|
||||||||
Total
|
|
$
|
10,738
|
|
|
$
|
2,025
|
|
|
$
|
—
|
|
|
$
|
12,763
|
|
|
$
|
12,630
|
|
|
$
|
1,358
|
|
|
$
|
—
|
|
|
$
|
13,988
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Foreign exchange currency contracts
|
|
$
|
—
|
|
|
$
|
733
|
|
|
$
|
—
|
|
|
$
|
733
|
|
|
$
|
—
|
|
|
$
|
5,552
|
|
|
$
|
—
|
|
|
$
|
5,552
|
|
Interest rate swap
|
|
—
|
|
|
623
|
|
|
—
|
|
|
623
|
|
|
—
|
|
|
852
|
|
|
—
|
|
|
852
|
|
||||||||
Deferred compensation obligations
|
|
—
|
|
|
8,270
|
|
|
—
|
|
|
8,270
|
|
|
—
|
|
|
7,574
|
|
|
—
|
|
|
7,574
|
|
||||||||
Total
|
|
$
|
—
|
|
|
$
|
9,626
|
|
|
$
|
—
|
|
|
$
|
9,626
|
|
|
$
|
—
|
|
|
$
|
13,978
|
|
|
$
|
—
|
|
|
$
|
13,978
|
|
(15)
|
Derivative Financial Instruments
|
|
|
Derivative
Balance Sheet
Location
|
|
Fair Value at Aug 3,
2013 |
|
Fair Value at Feb 2,
2013 |
||||
ASSETS:
|
|
|
|
|
|
|
|
|
||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||
Foreign exchange currency contracts:
|
|
|
|
|
|
|
||||
Cash flow hedges
|
|
Other current assets
|
|
$
|
927
|
|
|
$
|
387
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||
Foreign exchange currency contracts
|
|
Other current assets
|
|
1,098
|
|
|
971
|
|
||
Total
|
|
|
|
$
|
2,025
|
|
|
$
|
1,358
|
|
LIABILITIES:
|
|
|
|
|
|
|
|
|
||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||
Foreign exchange currency contracts:
|
|
|
|
|
|
|
||||
Cash flow hedges
|
|
Current liabilities
|
|
$
|
471
|
|
|
$
|
2,904
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
||
Foreign exchange currency contracts
|
|
Current liabilities
|
|
262
|
|
|
2,648
|
|
||
Interest rate swaps
|
|
Long-term liabilities
|
|
623
|
|
|
852
|
|
||
Total derivatives not designated as hedging instruments
|
|
|
|
885
|
|
|
3,500
|
|
||
Total
|
|
|
|
$
|
1,356
|
|
|
$
|
6,404
|
|
|
Gain/(Loss)
Recognized in
OCI
|
|
Location of
Gain/(Loss)
Reclassified from
Accumulated OCI
into Income (1)
|
|
Gain/(Loss)
Reclassified from
Accumulated OCI into
Income
|
||||||||||||
|
Three Months Ended
Aug 3, 2013
|
|
Three Months
Ended
Jul 28, 2012
|
|
|
Three Months Ended
Aug 3, 2013
|
|
Three Months
Ended
Jul 28, 2012
|
|||||||||
Derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange currency contracts
|
$
|
247
|
|
|
$
|
7,641
|
|
|
Cost of sales
|
|
$
|
393
|
|
|
$
|
714
|
|
Foreign exchange currency contracts
|
$
|
(20
|
)
|
|
$
|
673
|
|
|
Other income/expense
|
|
$
|
115
|
|
|
$
|
118
|
|
|
Gain/(Loss)
Recognized in
OCI
|
|
Location of
Gain/(Loss)
Reclassified from
Accumulated OCI
into Income (1)
|
|
Gain/(Loss)
Reclassified from
Accumulated OCI into
Income
|
||||||||||||
|
Six Months Ended
Aug 3, 2013
|
|
Six Months
Ended
Jul 28, 2012
|
|
|
Six Months Ended
Aug 3, 2013
|
|
Six Months
Ended
Jul 28, 2012
|
|||||||||
Derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange currency contracts
|
$
|
4,479
|
|
|
$
|
6,818
|
|
|
Cost of sales
|
|
$
|
872
|
|
|
$
|
3,157
|
|
Foreign exchange currency contracts
|
$
|
418
|
|
|
$
|
622
|
|
|
Other income/expense
|
|
$
|
94
|
|
|
$
|
296
|
|
(1)
|
The ineffective portion was immaterial during the
three and six months ended August 3, 2013
and
July 28, 2012
and was recorded in net earnings and included in interest income/expense.
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Aug 3,
2013 |
|
Jul 28,
2012 |
|
Aug 3,
2013 |
|
Jul 28,
2012 |
||||||||
Beginning balance gain (loss)
|
$
|
1,918
|
|
|
$
|
1,465
|
|
|
$
|
(1,782
|
)
|
|
$
|
4,259
|
|
Net gains (losses) from changes in cash flow hedges
|
64
|
|
|
7,261
|
|
|
4,152
|
|
|
6,767
|
|
||||
Net losses (gains) reclassified to income
|
(424
|
)
|
|
(733
|
)
|
|
(812
|
)
|
|
(3,033
|
)
|
||||
Ending balance gain (loss)
|
$
|
1,558
|
|
|
$
|
7,993
|
|
|
$
|
1,558
|
|
|
$
|
7,993
|
|
|
Location of
Gain/(Loss)
Recognized in
Income
|
|
Gain/(Loss)
Recognized in Income
|
|
Gain/(Loss)
Recognized in Income
|
||||||||||||
|
|
Three Months Ended
Aug 3, 2013
|
|
Three Months
Ended
Jul 28, 2012
|
|
Six Months Ended
Aug 3, 2013
|
|
Six Months
Ended
Jul 28, 2012
|
|||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign exchange currency contracts
|
Other income/expense
|
|
$
|
(727
|
)
|
|
$
|
8,474
|
|
|
$
|
3,049
|
|
|
6,220
|
|
|
Interest rate swaps
|
Other income/expense
|
|
$
|
118
|
|
|
$
|
(14
|
)
|
|
$
|
196
|
|
|
$
|
5
|
|
(16)
|
Subsequent Events
|
ITEM 2.
|
Management
’
s Discussion and Analysis of Financial Condition and Results of Operations.
|
•
|
Total net revenue
in
creased
0.6%
to $
639.0 million
for the quarter ended
August 3, 2013
, from $
635.4 million
in the same prior-year period.
In constant currency, net revenue
decrease
d by
1.4%
.
|
•
|
Gross margin (gross profit as a percentage of total net revenue)
de
clined
70
basis points to
38.9%
for the quarter ended
August 3, 2013
, compared to
39.6%
in the same prior-year period.
|
•
|
Selling, general and administrative (“SG&A”) expenses
de
creased
6.5%
to $
181.6 million
for the quarter ended
August 3, 2013
, compared to $
194.3 million
in the same prior-year period. SG&A expenses as a percentage of revenue (“SG&A rate”)
de
creased by
220
basis points to
28.4%
for the quarter ended
August 3, 2013
, compared to
30.6%
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
in
creased
6.1%
to $
60.8 million
for the quarter ended
August 3, 2013
, compared to $
57.3 million
in the same prior-year period. Operating margin
in
creased by
50
basis points to
9.5%
for the quarter ended
August 3, 2013
, compared to
9.0%
in the same prior-year period.
The restructuring charges of
$6.1 million
negatively impacted the operating margin for the quarter ended
August 3, 2013
by 100 basis points.
|
•
|
Other
expense
, net (including interest income and expense), was minimal for the quarter ended
August 3, 2013
, compared to other
income
, net of $
5.9 million
in the same prior-year period.
|
•
|
The effective income tax rate
in
creased
100
basis points to
33.0%
for the quarter ended
August 3, 2013
, compared to
32.0%
in the same prior-year period.
|
•
|
The Company had
$348.7 million
in cash and cash equivalents and short-term investments as of
August 3, 2013
,
up
$
67.2 million
, compared to $
281.5 million
as of
July 28, 2012
.
|
◦
|
During the fourth quarter of fiscal 2013, the Company paid a special cash dividend of $1.20 per share of the Company’s common stock, totaling approximately $102 million.
|
◦
|
The Company invested
$22.1 million
to repurchase approximately
0.9 million
of its common shares during the first quarter of fiscal 2014.
|
•
|
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
,
de
creased by
$51.6 million
, or
15.9%
, to
$271.8 million
at
August 3, 2013
, compared to $
323.4 million
at
July 28, 2012
. On a constant currency basis, accounts receivable
decreased
$66.9 million
, or
20.7%
.
|
•
|
Inventory
in
creased by
$18.9 million
, or
5.0%
, to
$400.1 million
as of
August 3, 2013
, compared to $
381.2 million
as of
July 28, 2012
.
When measured in terms of finished goods units, inventory volumes
increased
by
4.1%
as of
August 3, 2013
, when compared to
July 28, 2012
.
|
Region
|
|
Total Stores
|
|
Directly
Operated Stores
|
|
Licensee Stores
|
|||
United States and Canada
|
|
507
|
|
|
507
|
|
|
—
|
|
Europe and the Middle East
|
|
632
|
|
|
257
|
|
|
375
|
|
Asia
|
|
474
|
|
|
49
|
|
|
425
|
|
Central and South America
|
|
86
|
|
|
32
|
|
|
54
|
|
Total
|
|
1,699
|
|
|
845
|
|
|
854
|
|
|
Three Months Ended
|
|
|
|
|
|||||||||
|
Aug 3, 2013
|
|
Jul 28, 2012
|
|
Change
|
|
% Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|||||||
North American Retail
|
$
|
254,313
|
|
|
$
|
253,012
|
|
|
$
|
1,301
|
|
|
0.5
|
%
|
Europe
|
250,372
|
|
|
246,917
|
|
|
3,455
|
|
|
1.4
|
|
|||
Asia
|
65,852
|
|
|
66,826
|
|
|
(974
|
)
|
|
(1.5
|
)
|
|||
North American Wholesale
|
41,357
|
|
|
41,628
|
|
|
(271
|
)
|
|
(0.7
|
)
|
|||
Licensing
|
27,118
|
|
|
27,010
|
|
|
108
|
|
|
0.4
|
|
|||
Total net revenue
|
$
|
639,012
|
|
|
$
|
635,393
|
|
|
$
|
3,619
|
|
|
0.6
|
%
|
Earnings (loss) from operations:
|
|
|
|
|
|
|
|
|||||||
North American Retail
|
$
|
10,390
|
|
|
$
|
16,761
|
|
|
$
|
(6,371
|
)
|
|
(38.0
|
%)
|
Europe
|
39,275
|
|
|
24,622
|
|
|
14,653
|
|
|
59.5
|
|
|||
Asia
|
5,039
|
|
|
4,019
|
|
|
1,020
|
|
|
25.4
|
|
|||
North American Wholesale
|
8,478
|
|
|
7,701
|
|
|
777
|
|
|
10.1
|
|
|||
Licensing
|
25,101
|
|
|
22,869
|
|
|
2,232
|
|
|
9.8
|
|
|||
Corporate Overhead
|
(21,374
|
)
|
|
(18,671
|
)
|
|
(2,703
|
)
|
|
14.5
|
|
|||
Restructuring Charges
|
(6,129
|
)
|
|
—
|
|
|
(6,129
|
)
|
|
|
||||
Total earnings from operations
|
$
|
60,780
|
|
|
$
|
57,301
|
|
|
$
|
3,479
|
|
|
6.1
|
%
|
Operating margins:
|
|
|
|
|
|
|
|
|||||||
North American Retail
|
4.1
|
%
|
|
6.6
|
%
|
|
|
|
|
|||||
Europe
|
15.7
|
%
|
|
10.0
|
%
|
|
|
|
|
|||||
Asia
|
7.7
|
%
|
|
6.0
|
%
|
|
|
|
|
|||||
North American Wholesale
|
20.5
|
%
|
|
18.5
|
%
|
|
|
|
|
|||||
Licensing
|
92.6
|
%
|
|
84.7
|
%
|
|
|
|
|
|||||
Total Company
|
9.5
|
%
|
|
9.0
|
%
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|||||||||
|
Aug 3, 2013
|
|
Jul 28, 2012
|
|
Change
|
|
% Change
|
|||||||
|
(dollars in thousands)
|
|
|
|||||||||||
Net revenue:
|
|
|
|
|
|
|
|
|||||||
North American Retail
|
$
|
492,624
|
|
|
$
|
504,810
|
|
|
$
|
(12,186
|
)
|
|
(2.4
|
%)
|
Europe
|
415,764
|
|
|
436,732
|
|
|
(20,968
|
)
|
|
(4.8
|
)
|
|||
Asia
|
136,984
|
|
|
131,661
|
|
|
5,323
|
|
|
4.0
|
|
|||
North American Wholesale
|
85,186
|
|
|
85,546
|
|
|
(360
|
)
|
|
(0.4
|
)
|
|||
Licensing
|
57,368
|
|
|
55,910
|
|
|
1,458
|
|
|
2.6
|
|
|||
Total net revenue
|
$
|
1,187,926
|
|
|
$
|
1,214,659
|
|
|
$
|
(26,733
|
)
|
|
(2.2
|
%)
|
Earnings (loss) from operations:
|
|
|
|
|
|
|
|
|||||||
North American Retail
|
$
|
6,157
|
|
|
$
|
33,751
|
|
|
$
|
(27,594
|
)
|
|
(81.8
|
%)
|
Europe
|
34,057
|
|
|
37,103
|
|
|
(3,046
|
)
|
|
(8.2
|
)
|
|||
Asia
|
12,003
|
|
|
9,894
|
|
|
2,109
|
|
|
21.3
|
|
|||
North American Wholesale
|
17,127
|
|
|
17,047
|
|
|
80
|
|
|
0.5
|
|
|||
Licensing
|
51,305
|
|
|
47,455
|
|
|
3,850
|
|
|
8.1
|
|
|||
Corporate Overhead
|
(40,078
|
)
|
|
(48,808
|
)
|
|
8,730
|
|
|
(17.9
|
)
|
|||
Restructuring Charges
|
(8,466
|
)
|
|
—
|
|
|
(8,466
|
)
|
|
|
||||
Total earnings from operations
|
$
|
72,105
|
|
|
$
|
96,442
|
|
|
$
|
(24,337
|
)
|
|
(25.2
|
%)
|
Operating margins:
|
|
|
|
|
|
|
|
|||||||
North American Retail
|
1.2
|
%
|
|
6.7
|
%
|
|
|
|
|
|||||
Europe
|
8.2
|
%
|
|
8.5
|
%
|
|
|
|
|
|||||
Asia
|
8.8
|
%
|
|
7.5
|
%
|
|
|
|
|
|||||
North American Wholesale
|
20.1
|
%
|
|
19.9
|
%
|
|
|
|
|
|||||
Licensing
|
89.4
|
%
|
|
84.9
|
%
|
|
|
|
|
|||||
Total Company
|
6.1
|
%
|
|
7.9
|
%
|
|
|
|
|
ITEM 3.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
ITEM 1.
|
Legal Proceedings.
|
ITEM 1A.
|
Risk Factors.
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
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 5, 2013 to June 1, 2013
|
|
|
|
|
|
|
|
||||||
Repurchase program(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
495,786,484
|
|
|
Employee transactions(2)
|
142
|
|
|
$
|
31.78
|
|
|
—
|
|
|
—
|
|
|
June 2, 2013 to July 6, 2013
|
|
|
|
|
|
|
|
||||||
Repurchase program(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
495,786,484
|
|
|
Employee transactions(2)
|
941
|
|
|
$
|
30.26
|
|
|
—
|
|
|
—
|
|
|
July 7, 2013 to August 3, 2013
|
|
|
|
|
|
|
|
||||||
Repurchase program(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
495,786,484
|
|
|
Employee transactions(2)
|
339
|
|
|
$
|
31.83
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
|
|
|
|
|
|
||||||
Repurchase program(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|||
Employee transactions(2)
|
1,422
|
|
|
$
|
30.78
|
|
|
—
|
|
|
|
(1)
|
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 million
of 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 million
of 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.
|
(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 granted under the Company’s 2004 Equity Incentive Plan, as amended.
|
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).
|
†10.1.
|
|
Executive Employment Agreement dated July 11, 2013 between the Registrant and Paul Marciano.*
|
†10.2.
|
|
Restricted Stock Unit Agreement dated as of July 11, 2013 between the Registrant and Paul Marciano.*
|
†10.3.
|
|
Performance Share Award Agreement dated as of July 11, 2013 between the Registrant and Paul Marciano.*
|
†10.4.
|
|
Amendment 2013-I to the Supplemental Executive Retirement Plan of the Registrant dated as of July 11, 2013.*
|
†10.5.
|
|
Employment Letter Agreement dated July 18, 2013 between the Registrant and Sandeep Reddy.*
|
†10.6.
|
|
Employment Letter Agreement dated August 21, 2013 between the Registrant and Michael Relich.*
|
†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
|
*
|
Management Contract or Compensatory Plan
|
†
|
Filed herewith
|
|
|
Guess?, Inc.
|
|
|
|
|
|
Date:
|
September 9, 2013
|
By:
|
/s/ PAUL MARCIANO
|
|
|
|
Paul Marciano
|
|
|
|
Chief Executive Officer and Vice Chairman of the Board
|
|
|
|
|
Date:
|
September 9, 2013
|
By:
|
/s/ SANDEEP REDDY
|
|
|
|
Sandeep Reddy
|
|
|
|
Chief Financial Officer
|
|
|
|
(Principal Financial Officer)
|
1.
|
POSITION/DUTIES
.
|
GUESS?, INC.
|
|
|
By:
/s/ NIGEL KERSHAW
|
Name: Nigel Kershaw
|
Its: Interim Chief Financial Officer
|
|
|
|
PAUL MARCIANO
|
|
/s/ PAUL MARCIANO
|
1.
|
Definitions; Incorporation of Plan Terms
. Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan, except where a capitalized term is defined in the Executive Employment Agreement between the Company and the Grantee, effective February 3, 2013 (the “
Employment Agreement
”), and this Agreement indicates the definition used in the Employment Agreement shall apply for purposes of this Agreement as well. This Award and all rights of the Grantee under this Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the Plan, incorporated herein by this reference. Except as specifically provided in this Agreement, in the event of any conflict or inconsistency between the Plan and this Agreement, the Plan shall govern.
|
2.
|
Grant of Restricted Stock Units
. The Company hereby grants to the Grantee as of the Date of Grant (set forth above) a right to receive 100,000 shares of the Company's common stock subject to the terms, conditions, and restrictions set forth herein (the “
Restricted Stock Units
”). As used herein, the term “Restricted Stock Unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of the Company's common stock, par value $0.01 per share (the “
Common Stock
”) solely for purposes of the Plan and this Agreement. The Restricted Stock Units shall be used solely as a device for the determination of the number of shares of Common Stock to eventually be delivered to the Grantee if such Restricted Stock Units vest pursuant to this Agreement. The Restricted Stock Units shall not be treated as property or as a trust fund of any kind. The Grantee shall have no rights as a stockholder of the Company, no dividend rights (except as expressly provided in Section 4 with respect to Dividend Equivalent Rights) and no voting rights with respect to the Restricted Stock Units and any shares of Common Stock underlying or issuable in respect of such Restricted Stock Units (“
Award Shares
”) until such shares of Common Stock are actually issued to and held of record by the Grantee.
|
3.
|
Vesting
.
|
A.
|
Subject to the performance condition set forth in Section 3(B) below and except as otherwise expressly provided in Sections 7 and 8 herein, this Award shall vest as to (i) 33,333 Restricted Stock Units on January 30, 2014 (the “
First Tranche
”),
(ii) 33,333 Restricted Stock Units on January 30, 2015 (the “
Second Tranche
”); and (iii) 33,334 Restricted Stock Units on January 30, 2016 (the “
Third Tranche
”); provided that Grantee has been continuously employed with the Company from the Date of Grant through each applicable vesting date. Except as specifically
|
B.
|
No portion of this Award shall vest notwithstanding satisfaction of the continued employment requirement for vesting described in Section 3(A) above unless the Committee certifies, following the end of the Company's 2014 fiscal year, that the Company achieved Licensing Segment Earnings from Operations (as defined below) for the last three quarters of the Company's 2014 fiscal year (the “
Performance Period
”) equal to or above the level established by the Committee with respect to the Award in connection with the grant of the Award; provided, however, that if either a Change in Control (as defined in the Employment Agreement) or the death or Disability (as defined in the Employment Agreement) of the Grantee occurs before the last day of the Performance Period, the performance requirement of this Section 3(B) shall be deemed met as of the date of such event. If such performance requirement is not met (and no such Change in Control, death or Disability (as defined in the Employment Agreement) occurs before the last day of the Performance Period), this Award and the Restricted Stock Units subject hereto shall terminate and be cancelled as of the last day of the Performance Period.
|
C.
|
For purposes of this Award, “
Licensing Segment Earnings from Operations
” means: the Company's earnings from operations derived from the Company's Licensing Segment for the Performance Period as calculated in accordance with generally accepted accounting principles (“
GAAP
”), but adjusted to exclude the financial statement impact of any new changes in accounting standards announced during the Performance Period that are required to be applied during the Performance Period in accordance with GAAP.
|
4.
|
Dividend Equivalents
. If a cash dividend is paid with respect to the Common Stock while any Restricted Stock Units subject to the Award are outstanding, the Grantee shall be credited with an amount in cash equal to the dividends the Grantee would have received if he had been the owner of the shares of Common Stock subject to such outstanding Restricted Stock Units; provided, however, that no amount shall be credited with respect to shares that have been delivered to the Grantee as of the applicable dividend record date. Any amounts credited under this Section 4 (“
Dividend Equivalents
”) shall be subject to the same terms and conditions as the Restricted Stock Units to which they relate and shall vest and be paid (or, if applicable, be forfeited) at the same time as the Restricted Stock Units to which they relate.
|
5.
|
Delivery of Shares
. Except as otherwise provided in Section 8 below with respect to a Change in Control, the Company shall deliver or cause to be delivered to the Grantee the number of Award Shares subject to the First Tranche that vest pursuant to the terms hereof within ten days following certification by the Committee of the satisfaction of the performance criteria set forth in Section 3(B) (and in no event later than 74 days following the end of the Performance Period), the number of Award Shares subject to the Second Tranche that vest pursuant to the terms hereof on (or within three business days following) January 30, 2015 and the number of Award Shares subject to the Third Tranche that vest pursuant to the terms hereof on (or within three business days following) January 30, 2016. Any Dividend Equivalents described in Section 4 above related to such Award Shares shall be paid in cash at the same time as the delivery of the Award Shares under this Section 5. Notwithstanding the foregoing: (a) in the event of the Grantee's death or Disability (as such term is defined for purposes of Section 409A of the Code), then such shares shall be settled as soon as administratively practicable after (and in all events within 90 days after) such event; and (b) in the event of the Grantee's “separation from service” (as such term is defined for purposes of Code Section 409A) upon or within two years following a Section 409A Change in Control (as such term is defined in Section 8(A)), then such shares shall be settled as soon as administratively possible after (and in all events within ten days after) such event (subject to Section 10(C)).
|
6.
|
Adjustments Upon Specified Events
. Upon the occurrence of certain events relating to the Company's Common Stock contemplated by Section 16(b) of the Plan, the Committee will make adjustments, if appropriate, in the number of Restricted Stock Units and the number and kind of securities subject to the Award.
|
7.
|
Effect of Certain Cessations of Employment
. The continued employment vesting requirement set forth under Section 3(A) of this Award shall be deemed to be satisfied, and any then-outstanding Restricted Stock Units shall be deemed vested, in the event that (a) the Grantee's employment is terminated by the Company without “Cause” (as defined in the Employment Agreement), (b) the Grantee's employment is terminated by the Grantee for “Good Reason” (as defined in the Employment Agreement) or (c) in the event of the Grantee's Disability (as defined in the Employment Agreement) or death
while employed by the Company. For purposes of clarity, any Restricted Stock Units that vest pursuant to the preceding sentence shall still be paid at the applicable time set forth in Section 5. If the Grantee's employment terminates for any other reason, or the Grantee fails to satisfy the Release requirement referred to above in connection with a termination of employment referred to above to which such Release requirement applies, this Award and the Restricted Stock Units subject hereto, to the extent outstanding and unvested as of the date of such termination of employment, shall terminate and be cancelled as of the date of such termination of employment. Sections 14(a) and 14(b) of the Plan shall not apply to the Award.
|
8.
|
Change in Control
. Notwithstanding anything to the contrary in Section 3, Section 5 or Section 7 of this Agreement or any provision of the Plan, the following provisions shall apply upon a Change in Control (as defined in the Employment Agreement):
|
A.
|
If a Change in Control occurs and the then-outstanding and unvested portion of this Award is
not
continued following such event or assumed or converted into restricted stock units of any successor entity to the Company or a parent thereof (the “
Successor Entity
”), the continued employment vesting requirement set forth under Section 3(A) of this Award shall be deemed to be satisfied, the outstanding Restricted Stock Units subject to such portion shall be deemed vested, and such Restricted Stock Units shall be settled at the time(s) otherwise provided in Section 5; provided that if such Change in Control constitutes a “change in the ownership or effective control” of the Company, or a change “in the ownership of a substantial portion of the assets” of the Company within the meaning of Section 409A of the Code (a “
Section 409A Change in Control
”), outstanding and vested Restricted Stock Units (including any that vest pursuant to the foregoing provisions of this sentence) and related Dividend Equivalents shall be settled upon or as soon as practicable after the date of such Change in Control to the extent such acceleration of payment can be made in accordance with Treas. Reg. §1.409A-3(j)(4)(ix) (or other exemption from the general prohibitions on accelerations of payments under Section 409A of the Code) and not result in any tax, penalty or interest under Section 409A of the Code. In connection with any such Change in Control where payment of outstanding Restricted Stock Units subject to the Award will not be made in connection with the Change in Control, the Committee may make provision for such Restricted Stock Units to become payable in cash based on the Fair Market Value of a share of Common Stock at the time of such Change in Control (with interest for the period from the date of such Change in Control to the applicable payment date at such rate as determined by the Committee based on the interest earned by interest bearing, FDIC insured deposits) as opposed to being payable in securities.
|
B.
|
If the then-outstanding and unvested portion of this Award is continued following such event or is assumed or converted into restricted stock units of any Successor Entity, the continued employment requirement set forth in Section 3(A) above (and the accelerated vesting provisions set forth in Section 7 above) shall continue to apply following such Change in Control, and any portion of the Award that vests pursuant to such provisions shall be settled as provided in Section 5 of this Agreement.
|
9.
|
Restrictions on Transfer
. The Grantee may not sell, assign, transfer, pledge, encumber or otherwise alienate, hypothecate or dispose of this Award or the Grantee's right hereunder to receive Award Shares, except as otherwise provided in the Committee's sole discretion consistent with the Plan and applicable securities laws.
|
10.
|
Taxes
.
|
A.
|
The settlement of this Award is conditioned on the Grantee making arrangements reasonably satisfactory to the Company for the withholding of all applicable federal, state, local or foreign taxes as may be required under applicable law.
|
B.
|
It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) (“
Code Section 409A
”) so as not to subject the Grantee to payment of any additional tax, penalty or interest imposed under Code Section 409A. The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Grantee.
|
C.
|
If the Grantee is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Grantee's “separation from service” (as such term is defined for purposes of Code Section 409A), the Grantee shall not be entitled to any payment or benefit pursuant to this Award until the earlier of (i) the date which is six (6) months after the Grantee's separation from service for any reason other than death, or (ii) the date of the Grantee's death. The provisions of this Section 10(C) shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A. Any amounts otherwise payable to the Grantee upon or in the six (6) month period following the Grantee's separation from service that are not so paid by reason of this Section 10(C) shall be paid (without interest, except as otherwise provided for in Section 8(A)) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Grantee's separation from service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Grantee's death). For avoidance of doubt, Dividend Equivalents under Section 4 shall continue to be credited during the period of such six-month delay until the vested Restricted Stock Units are actually settled.
|
D.
|
It is intended that this Award qualify as “performance-based compensation” for purposes of Section 162(m) of the Code and the provisions of this Agreement shall be construed and interpreted consistent with that intent.
|
11.
|
Compliance
. The Grantee hereby agrees to cooperate with the Company, regardless of Grantee's employment status with the Company, to the extent necessary for the Company to comply with applicable state and federal laws and regulations relating to the Restricted Stock Units.
|
12.
|
Notices
. Any notice required or permitted under this Agreement shall be deemed given when personally delivered, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Grantee either at the address on record with the Company or such other address as may be designated by Grantee in writing to the Company; or to the Company, Attention: Stock Plan Administration, 1444 South Alameda Street, Los Angeles, California 90021, or such other address as the Company may designate in writing to the Grantee.
|
13.
|
Failure to Enforce Not a Waiver
. The failure of the Company or the Grantee to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
|
14.
|
Governing Law
. This Agreement shall be governed by and construed according to the laws of the State of Delaware, without regard to Delaware or other laws that might cause other law to govern under applicable principles of conflicts of law. For purposes of litigating any dispute that arises under this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation shall be conducted in the courts of Los Angeles County, or the federal courts for the United States for the
Central District of California, and no other courts, where this Agreement is made and/or to be performed.
|
15.
|
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to the Restricted Stock Units awarded under the Plan or future restricted stock or restricted stock units that may be awarded under the Plan by electronic means or request Grantee's consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.
|
16.
|
Severability
. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
|
17.
|
Amendments
. This Agreement may be amended or modified at any time by an instrument in writing signed by both parties.
|
18.
|
Agreement Not a Contract of Employment
. Neither the grant of the Restricted Stock Units, this Agreement nor any other action taken in connection herewith shall constitute or be evidence of any agreement or understanding, express or implied, that the Grantee is an employee of the Company or any subsidiary of the Company.
|
19.
|
Committee's Powers
. No provision contained in this Agreement shall in any way terminate, modify or alter, or be construed or interpreted as terminating, modifying or altering any of the powers, rights or authority vested in the Committee or, to the extent delegated, in its delegate pursuant to the terms of the Plan or resolutions adopted in furtherance of the Plan, including, without limitation, the right to make certain determinations and elections with respect to the Restricted Stock Units.
|
20.
|
Termination of this Agreement
. Upon termination of this Agreement, all rights of the Grantee hereunder shall cease.
|
21.
|
Clawback Policy
. This Award is subject to the terms of the Company's recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Award or any shares of Common Stock or other cash or property received with respect to the Award (including any value received from a disposition of the shares acquired in respect of the Award).
|
GUESS?, INC.,
|
a Delaware corporation
|
|
By:___________________________________________
|
|
Print Name:
|
|
Its:
|
|
GRANTEE
|
|
______________________________________________
|
Signature
|
______________________________________________
|
Print Name
|
______________________________________________
|
Employee ID
|
1.
|
Definitions; Incorporation of Plan Terms
. Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan, except where a capitalized term is defined in the Executive Employment Agreement between the Company and the Grantee, effective February 3, 2013 (the “
Employment Agreement
”), and this Agreement indicates the definition used in the Employment Agreement shall apply for purposes of this Agreement as well. This Award and all rights of the Grantee under this Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the Plan, incorporated herein by this reference. Except as specifically provided in this Agreement, in the event of any conflict or inconsistency between the Plan and this Agreement, the Plan shall govern.
|
2.
|
Grant of Restricted Stock Units
. The Company hereby grants to the Grantee as of the Date of Grant (set forth above) a right to receive a “target” of
[ ]
shares of the Company's common stock subject to the terms, conditions, and restrictions set forth herein (the “
Restricted Stock Units
,” and such number of Restricted Stock Units, the “
Target Number of Restricted Stock Units
”). As used herein, the term “Restricted Stock Unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of the Company's common stock, par value $0.01 per share (the “
Common Stock
”), solely for purposes of the Plan and this Agreement. The Restricted Stock Units shall be used solely as a device for the determination of the number of shares of Common Stock to eventually be delivered to the Grantee if such Restricted Stock Units vest pursuant to this Agreement. The Restricted Stock Units shall not be treated as property or as a trust fund of any kind. The Grantee shall have no rights as a stockholder of the Company, no dividend rights (except as expressly provided in Section 4 with respect to Dividend Equivalent rights) and no voting rights with respect to the Restricted Stock Units and any shares of Common Stock underlying or issuable in respect of such Restricted Stock Units (“
Award Shares
”) until such shares of Common Stock are actually issued to and held of record by the Grantee.
|
3.
|
Vesting
.
|
A.
|
The Grantee shall be credited with a number of Restricted Stock Units equal to the Target Number of Restricted Stock Units multiplied by a “
Vesting Percentage
” determined based on the Company's Earnings from Operations (as defined below) for the last three quarters of the Company's 2014 fiscal year (the “
Performance Period
”) in accordance with the following table:
|
Earnings from Operations for Performance Period
|
|
Vesting Percentage
|
Below Threshold
|
|
—%
|
Threshold
|
|
50%
|
Target
|
|
100%
|
Stretch or Above
|
|
150%
|
B.
|
The “Threshold,” “Target” and “Stretch” levels of Earnings from Operations to be used to determine the Vesting Percentage under Section 3(A) will be established by the Committee in connection with the grant of the Award.
|
C.
|
For purposes of this Award, “
Earnings from Operations
” means: the Company's earnings from operations for the Performance Period as calculated in accordance with generally accepted accounting principles (“
GAAP
”), but adjusted (without duplication) to exclude the financial statement impact of the following items:
|
i.
|
any charges or accruals incurred for the Performance Period for litigation matters, but only where such charges or accruals for any particular matter exceed $500,000 for the Performance Period;
|
ii.
|
restructuring charges incurred for the Performance Period related to employee severance related costs, store closure related costs and other real estate closure related costs;
|
iii.
|
any new changes in accounting standards announced during the Performance Period that are required to be applied during the Performance Period in accordance with GAAP, and
|
iv.
|
acquisitions and costs associated with such acquisitions and the costs incurred in connection with potential acquisitions that are required to be expensed under GAAP.
|
D.
|
Except as otherwise expressly provided in Sections 7 and 8 herein, the Credited Restricted Stock Units shall vest on the second (2
nd
) anniversary of the last day of the Performance Period (the “
Vesting Date
”); provided that the Grantee has been continuously employed with the Company from the Date of Grant through the Vesting Date. Except as specifically provided herein, employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting.
|
4.
|
Dividend Equivalents
. If a cash dividend is paid with respect to the Common Stock after the end of the Performance Period (or, if earlier, following the occurrence of a Change in Control), and while any Restricted Stock Units subject to the Award are outstanding, the Grantee shall be credited with an amount in cash equal to the dividends the Grantee would have received if he had been the owner of the shares of Common Stock subject to such outstanding Credited Restricted Stock Units; provided, however, that no amount shall be credited with respect to shares that have been delivered to the Grantee as of the applicable dividend record date. Any amounts credited under this Section 4 (“
Dividend Equivalents
”) shall be subject to the same terms and conditions as the Credited Restricted Stock Units to which they relate and shall vest and be paid (or, if applicable, be forfeited) at the same time as the Credited Restricted Stock Units to which they relate.
|
5.
|
Delivery of Shares
. Except as otherwise provided in Section 8 below with respect to a Change in Control, the Company shall deliver or cause to be delivered to the Grantee the number of Award Shares subject to any Restricted Stock Units that vest pursuant to the terms hereof on (or within three business days following) the Vesting Date. Any Dividend Equivalents described in Section 4 above related to such Award Shares shall be paid in cash at the same time as the delivery of the Award Shares under this Section 5. Notwithstanding the foregoing: (a) in the event of the Grantee's death or Disability (as such term is defined for purposes of Section 409A of the Code), then such shares shall be settled as soon as administratively practicable after (and in all events within 90 days after) such event; and (b) in the event of the Grantee's “separation from service” (as such term is defined for purposes of Code Section 409A) upon or within two years following a Section 409A Change in Control (as such term is defined in Section 8(A)), then such shares shall be settled as soon as administratively possible after (and in all events within ten days after) such event (subject to Section 10(C)).
|
6.
|
Adjustments Upon Specified Events
. Upon the occurrence of certain events relating to the Company's Common Stock contemplated by Section 16(b) of the Plan, the Committee will make adjustments, if appropriate, in the number of Restricted Stock Units and the number and kind of securities subject to the Award.
|
7.
|
Effect of Certain Cessations of Employment
.
|
A.
|
If, at any time prior to the Vesting Date, the Grantee's employment is terminated by the Company without “Cause” (as defined in the Employment Agreement) or by the Grantee for “Good Reason” (as defined in the Employment Agreement)
and
a Change in Control has not previously occurred, the Award will vest as of the date of such termination of the Grantee's employment (or, if later, the last day of the Performance Period) with respect to a number of Restricted Stock Units equal to (i) the Credited Restricted Stock Units as determined under Section 3, multiplied by (ii) a fraction, the numerator of which is the number of days of the Grantee's employment between the first day of the Performance Period and the date of such termination of the Grantee's employment, and the denominator of which is the total number of days between the first day of the Performance Period and the Vesting Date.
|
B.
|
If, at any time prior to the Vesting Date, the Grantee's death or Disability (as such term is defined in the Employment Agreement) occurs while the Grantee is employed by the Company, the Award will vest as of the date of such event with respect to the number of Credited Restricted Stock Units as determined under Section 3.
|
C.
|
If the Grantee's employment terminates for any other reason, this Award and the Restricted Stock Units subject hereto, to the extent outstanding and unvested as of the date of such termination of employment, shall terminate and be cancelled as of the date of such termination of employment. Sections 14(a) and 14(b) of the Plan shall not apply to the Award.
|
D.
|
For purposes of clarity, any Restricted Stock Units that vest pursuant to this Section 7 (and any Dividend Equivalents related thereto) shall still be paid at the applicable time set forth in Section 5.
|
8.
|
Change in Control
. Notwithstanding anything to the contrary in Section 3, Section 5 or Section 7 of this Agreement or any provision of the Plan, the following provisions shall apply upon a Change in Control (as defined in the Employment Agreement):
|
A.
|
If a Change in Control occurs and this Award (to the extent outstanding) is
not
continued following such event or assumed or converted into restricted stock units of any successor entity to the Company or a parent thereof (the “
Successor Entity
”), the Award will vest as of the date of such Change in Control with respect to the number of Credited Restricted Stock Units as determined under Section 3 (or, if the Change in Control occurs before the end of the Performance Period, the Target Number of Restricted Stock Units), and such Restricted Stock Units (and any related Dividend Equivalents) shall be paid at the time(s) otherwise provided in Section 5; provided that if such Change in Control constitutes a “change in the ownership or effective control” of the Company, or a change “in the ownership of a substantial portion of the assets” of the Company within the meaning of Section 409A of the Code (a “
Section 409A Change in Control
”), the outstanding vested Restricted Stock Units subject to the Award and any related Dividend Equivalents shall be paid upon or as soon as practicable after the date of such Change in Control to the extent such acceleration of payment can be made in accordance with Treas. Reg. §1.409A-3(j)(4)(ix) (or other exemption from the general prohibitions on accelerations of payments under Section 409A of the Code) and not result in any tax, penalty or interest under Section 409A of the Code. In connection with any such Change in Control where payment of such Restricted Stock Units subject to the Award will not be made in connection with the Change in Control, the Committee may make provision for such Restricted Stock Units to become payable in cash based on the Fair Market Value of a share of Common Stock at the time of such Change in Control (with interest for the period from the date of such Change in Control to the applicable payment date at such rate as determined by the Committee based on the interest earned by interest bearing, FDIC insured deposits) as opposed to being payable in securities. The foregoing provisions do not supersede Section 7(C) to the extent the Grantee's employment by the Company terminates and such provision is triggered prior to a Change in Control.
|
B.
|
If the Award (to the extent then outstanding) is continued following a Change in Control or is assumed or converted into restricted stock units of any Successor Entity, the continued employment requirement set forth in Section 3(D) above (and the accelerated vesting provisions set forth in Section 7(A) and 7(B) above) shall continue to apply following such Change in Control; provided, however, that if a termination of the Grantee's employment described in Section 7(A) above occurs after a Change in Control and prior to the Vesting Date, the Award will vest as of the date of such termination of the Grantee's employment with respect to the number of Credited Restricted Stock Units as determined under Section 3 (or, if such termination occurs before the last day of the Performance Period, the Target Number of Restricted Stock Units). Any Restricted Stock Units (and any related Dividend Equivalents) that vest pursuant to this Section 8(B) shall be paid at the time(s) otherwise provided in Section 5.
|
9.
|
Restrictions on Transfer
. The Grantee may not sell, assign, transfer, pledge, encumber or otherwise alienate, hypothecate or dispose of this Award or the Grantee's right hereunder to receive Award Shares,
|
10.
|
Taxes
.
|
A.
|
The settlement of this Award is conditioned on the Grantee making arrangements reasonably satisfactory to the Company for the withholding of all applicable federal, state, local or foreign taxes as may be required under applicable law.
|
B.
|
It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) (“
Code Section 409A
”) so as not to subject the Grantee to payment of any additional tax, penalty or interest imposed under Code Section 409A. The provisions of this Agreement shall be construed and interpreted to avoid the imputation of any such additional tax, penalty or interest under Code Section 409A yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Grantee.
|
C.
|
If the Grantee is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Grantee's “separation from service” (as such term is defined for purposes of Code Section 409A), the Grantee shall not be entitled to any payment or benefit pursuant to this Award until the earlier of (i) the date which is six (6) months after the Grantee's separation from service for any reason other than death, or (ii) the date of the Grantee's death. The provisions of this Section 10(C) shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A. Any amounts otherwise payable to the Grantee upon or in the six (6) month period following the Grantee's separation from service that are not so paid by reason of this Section 10(C) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Grantee's separation from service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Grantee's death).
|
D.
|
It is intended that this Award qualify as “performance-based compensation” for purposes of Section 162(m) of the Code and the provisions of this Agreement shall be construed and interpreted consistent with that intent.
|
11.
|
Compliance
. The Grantee hereby agrees to cooperate with the Company, regardless of Grantee's employment status with the Company, to the extent necessary for the Company to comply with applicable state and federal laws and regulations relating to the Restricted Stock Units.
|
12.
|
Notices
. Any notice required or permitted under this Agreement shall be deemed given when personally delivered, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Grantee either at the address on record with the Company or such other address as may be designated by Grantee in writing to the Company; or to the Company, Attention: Stock Plan Administration, 1444 South Alameda Street, Los Angeles, California 90021, or such other address as the Company may designate in writing to the Grantee.
|
13.
|
Failure to Enforce Not a Waiver
. The failure of the Company or the Grantee to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
|
14.
|
Governing Law
. This Agreement shall be governed by and construed according to the laws of the State of Delaware, without regard to Delaware or other laws that might cause other law to govern under applicable principles of conflicts of law. For purposes of litigating any dispute that arises under this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation shall be conducted in the courts of Los Angeles County, or the federal courts for the United States for the
Central District of California, and no other courts, where this Agreement is made and/or to be performed.
|
15.
|
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to the Restricted Stock Units awarded under the Plan or future restricted stock or restricted stock units that may be awarded under the Plan by electronic means or request Grantee's consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.
|
16.
|
Severability
. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
|
17.
|
Amendments
. This Agreement may be amended or modified at any time by an instrument in writing signed by both parties.
|
18.
|
Agreement Not a Contract of Employment
. Neither the grant of the Restricted Stock Units, this Agreement nor any other action taken in connection herewith shall constitute or be evidence of any agreement or understanding, express or implied, that the Grantee is an employee of the Company or any subsidiary of the Company.
|
19.
|
Committee's Powers
. No provision contained in this Agreement shall in any way terminate, modify or alter, or be construed or interpreted as terminating, modifying or altering any of the powers, rights or authority vested in the Committee or, to the extent delegated, in its delegate pursuant to the terms of the Plan or resolutions adopted in furtherance of the Plan, including, without limitation, the right to make certain determinations and elections with respect to the Restricted Stock Units.
|
20.
|
Termination of this Agreement
. Upon termination of this Agreement, all rights of the Grantee hereunder shall cease.
|
21.
|
Clawback Policy
. This Award is subject to the terms of the Company's recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Award or any shares of Common Stock or other cash or property received with respect to the Award (including any value received from a disposition of the shares acquired in respect of the Award).
|
GUESS?, INC.,
|
a Delaware corporation
|
|
By:___________________________________________
|
|
Print Name:
|
|
Its:
|
|
GRANTEE
|
|
______________________________________________
|
Signature
|
______________________________________________
|
Print Name
|
______________________________________________
|
Employee ID
|
1.
|
Definitions; Incorporation of Plan Terms
. Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan, except where a capitalized term is defined in the Executive Employment Agreement between the Company and the Grantee, effective February 3, 2013 (the “
Employment Agreement
”), and this Agreement indicates the definition used in the Employment Agreement shall apply for purposes of this Agreement as well. This Award and all rights of the Grantee under this Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the Plan, incorporated herein by this reference. Except as specifically provided in this Agreement, in the event of any conflict or inconsistency between the Plan and this Agreement, the Plan shall govern.
|
2.
|
Grant of Restricted Stock Units
. The Company hereby grants to the Grantee as of the Date of Grant (set forth above) a right to receive 100,000 shares of the Company's common stock subject to the terms, conditions, and restrictions set forth herein (the “
Restricted Stock Units
”). As used herein, the term “Restricted Stock Unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of the Company's common stock, par value $0.01 per share (the “
Common Stock
”) solely for purposes of the Plan and this Agreement. The Restricted Stock Units shall be used solely as a device for the determination of the number of shares of Common Stock to eventually be delivered to the Grantee if such Restricted Stock Units vest pursuant to this Agreement. The Restricted Stock Units shall not be treated as property or as a trust fund of any kind. The Grantee shall have no rights as a stockholder of the Company, no dividend rights (except as expressly provided in Section 4 with respect to Dividend Equivalent Rights) and no voting rights with respect to the Restricted Stock Units and any shares of Common Stock underlying or issuable in respect of such Restricted Stock Units (“
Award Shares
”) until such shares of Common Stock are actually issued to and held of record by the Grantee.
|
3.
|
Vesting
.
|
A.
|
Subject to the performance condition set forth in Section 3(B) below and except as otherwise expressly provided in Sections 7 and 8 herein, this Award shall vest as to (i) 33,333 Restricted Stock Units on January 30, 2014 (the “
First Tranche
”),
(ii) 33,333 Restricted Stock Units on January 30, 2015 (the “
Second Tranche
”); and (iii) 33,334 Restricted Stock Units on January 30, 2016 (the “
Third Tranche
”); provided that Grantee has been continuously employed with the Company from the Date of Grant through each applicable vesting date. Except as specifically provided herein, employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting.
|
B.
|
No portion of this Award shall vest notwithstanding satisfaction of the continued employment requirement for vesting described in Section 3(A) above unless the Committee certifies, following the end of the Company's 2014 fiscal year, that the Company achieved Licensing Segment Earnings from Operations (as defined below) for the last three quarters of the Company's 2014 fiscal year (the “
Performance Period
”) equal to or above the level established by the Committee with respect to the Award in connection with the grant of the Award; provided, however, that if either a Change in Control (as defined in the Employment Agreement) or the death or Disability (as defined in the Employment Agreement) of the Grantee occurs before the last day of the Performance Period, the performance requirement of this Section 3(B) shall be deemed met as of the date of such event. If such performance requirement is not met (and no such Change in Control, death or Disability (as defined in the Employment Agreement) occurs before the last day of the Performance Period), this Award and the Restricted Stock Units subject hereto shall terminate and be cancelled as of the last day of the Performance Period.
|
C.
|
For purposes of this Award, “
Licensing Segment Earnings from Operations
” means: the Company's earnings from operations derived from the Company's Licensing Segment for the Performance Period as calculated in accordance with generally accepted accounting principles (“
GAAP
”), but adjusted to exclude the financial statement impact of any new changes in accounting standards announced during the Performance Period that are required to be applied during the Performance Period in accordance with GAAP.
|
4.
|
Dividend Equivalents
. If a cash dividend is paid with respect to the Common Stock while any Restricted Stock Units subject to the Award are outstanding, the Grantee shall be credited with an amount in cash equal to the dividends the Grantee would have received if he had been the owner of the shares of Common Stock subject to such outstanding Restricted Stock Units; provided, however, that no amount shall be credited with respect to shares that have been delivered to the Grantee as of the applicable dividend record date. Any amounts credited under this Section 4 (“
Dividend Equivalents
”) shall be subject to the same terms and conditions as the Restricted Stock Units to which they relate and shall vest and be paid (or, if applicable, be forfeited) at the same time as the Restricted Stock Units to which they relate.
|
5.
|
Delivery of Shares
. Except as otherwise provided in Section 8 below with respect to a Change in Control, the Company shall deliver or cause to be delivered to the Grantee the number of Award Shares subject to the First Tranche that vest pursuant to the terms hereof within ten days following certification by the Committee of the satisfaction of the performance criteria set forth in Section 3(B) (and in no event later than 74 days following the end of the Performance Period), the number of Award Shares subject to the Second Tranche that vest pursuant to the terms hereof on (or within three business days following) January 30, 2015 and the number of Award Shares subject to the Third Tranche that vest pursuant to the terms hereof on (or within three business days following) January 30, 2016. Any Dividend Equivalents described in Section 4 above related to such Award Shares shall be paid in cash at the same time as the delivery of the Award Shares under this Section 5. Notwithstanding the foregoing: (a) in the event of the Grantee's death or Disability (as such term is defined for purposes of Section 409A of the Code), then such shares shall be settled as soon as administratively practicable after (and in all events within 90 days after) such event; and (b) in the event of the Grantee's “separation from service” (as such term is defined for purposes of Code Section 409A) upon or within two years following a Section 409A Change in Control (as such term is defined in Section 8(A)), then such shares shall be settled as soon as administratively possible after (and in all events within ten days after) such event (subject to Section 10(C)).
|
6.
|
Adjustments Upon Specified Events
. Upon the occurrence of certain events relating to the Company's Common Stock contemplated by Section 16(b) of the Plan, the Committee will make adjustments, if appropriate, in the number of Restricted Stock Units and the number and kind of securities subject to the Award.
|
7.
|
Effect of Certain Cessations of Employment
. The continued employment vesting requirement set forth under Section 3(A) of this Award shall be deemed to be satisfied, and any then-outstanding Restricted Stock Units shall be deemed vested, in the event that (a) the Grantee's employment is terminated by the Company without “Cause” (as defined in the Employment Agreement), (b) the Grantee's employment is terminated by the Grantee for “Good Reason” (as defined in the Employment Agreement) or (c) in the event of the Grantee's Disability (as defined in the Employment Agreement) or death
while employed by the Company. For purposes of clarity, any Restricted Stock Units that vest pursuant to the preceding sentence shall still be paid at the applicable time set forth in Section 5. If the Grantee's employment terminates for any other reason, or the Grantee fails to satisfy the Release requirement referred to above in connection with a termination of employment referred to above to which such Release requirement applies, this Award and the Restricted Stock Units subject hereto, to the extent outstanding and unvested as of the date of such termination of employment, shall terminate and be cancelled as of the date of such termination of employment. Sections 14(a) and 14(b) of the Plan shall not apply to the Award.
|
8.
|
Change in Control
. Notwithstanding anything to the contrary in Section 3, Section 5 or Section 7 of this Agreement or any provision of the Plan, the following provisions shall apply upon a Change in Control (as defined in the Employment Agreement):
|
A.
|
If a Change in Control occurs and the then-outstanding and unvested portion of this Award is
not
continued following such event or assumed or converted into
|
B.
|
If the then-outstanding and unvested portion of this Award is continued following such event or is assumed or converted into restricted stock units of any Successor Entity, the continued employment requirement set forth in Section 3(A) above (and the accelerated vesting provisions set forth in Section 7 above) shall continue to apply following such Change in Control, and any portion of the Award that vests pursuant to such provisions shall be settled as provided in Section 5 of this Agreement.
|
9.
|
Restrictions on Transfer
. The Grantee may not sell, assign, transfer, pledge, encumber or otherwise alienate, hypothecate or dispose of this Award or the Grantee's right hereunder to receive Award Shares, except as otherwise provided in the Committee's sole discretion consistent with the Plan and applicable securities laws.
|
10.
|
Taxes
.
|
A.
|
The settlement of this Award is conditioned on the Grantee making arrangements reasonably satisfactory to the Company for the withholding of all applicable federal, state, local or foreign taxes as may be required under applicable law.
|
B.
|
It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) (“
Code Section 409A
”) so as not to subject the Grantee to payment of any additional tax, penalty or
|
C.
|
If the Grantee is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Grantee's “separation from service” (as such term is defined for purposes of Code Section 409A), the Grantee shall not be entitled to any payment or benefit pursuant to this Award until the earlier of (i) the date which is six (6) months after the Grantee's separation from service for any reason other than death, or (ii) the date of the Grantee's death. The provisions of this Section 10(C) shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A. Any amounts otherwise payable to the Grantee upon or in the six (6) month period following the Grantee's separation from service that are not so paid by reason of this Section 10(C) shall be paid (without interest, except as otherwise provided for in Section 8(A)) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Grantee's separation from service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Grantee's death). For avoidance of doubt, Dividend Equivalents under Section 4 shall continue to be credited during the period of such six-month delay until the vested Restricted Stock Units are actually settled.
|
D.
|
It is intended that this Award qualify as “performance-based compensation” for purposes of Section 162(m) of the Code and the provisions of this Agreement shall be construed and interpreted consistent with that intent.
|
11.
|
Compliance
. The Grantee hereby agrees to cooperate with the Company, regardless of Grantee's employment status with the Company, to the extent necessary for the Company to comply with applicable state and federal laws and regulations relating to the Restricted Stock Units.
|
12.
|
Notices
. Any notice required or permitted under this Agreement shall be deemed given when personally delivered, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Grantee either at the address on record with the Company or such other address as may be designated by Grantee in writing to the Company; or to the Company, Attention: Stock Plan Administration, 1444 South Alameda Street, Los Angeles, California 90021, or such other address as the Company may designate in writing to the Grantee.
|
13.
|
Failure to Enforce Not a Waiver
. The failure of the Company or the Grantee to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
|
14.
|
Governing Law
. This Agreement shall be governed by and construed according to the laws of the State of Delaware, without regard to Delaware or other laws that might cause other law to govern under applicable principles of conflicts of law. For purposes of litigating any dispute that arises under this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation shall be
|
15.
|
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to the Restricted Stock Units awarded under the Plan or future restricted stock or restricted stock units that may be awarded under the Plan by electronic means or request Grantee's consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.
|
16.
|
Severability
. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
|
17.
|
Amendments
. This Agreement may be amended or modified at any time by an instrument in writing signed by both parties.
|
18.
|
Agreement Not a Contract of Employment
. Neither the grant of the Restricted Stock Units, this Agreement nor any other action taken in connection herewith shall constitute or be evidence of any agreement or understanding, express or implied, that the Grantee is an employee of the Company or any subsidiary of the Company.
|
19.
|
Committee's Powers
. No provision contained in this Agreement shall in any way terminate, modify or alter, or be construed or interpreted as terminating, modifying or altering any of the powers, rights or authority vested in the Committee or, to the extent delegated, in its delegate pursuant to the terms of the Plan or resolutions adopted in furtherance of the Plan, including, without limitation, the right to make certain determinations and elections with respect to the Restricted Stock Units.
|
20.
|
Termination of this Agreement
. Upon termination of this Agreement, all rights of the Grantee hereunder shall cease.
|
21.
|
Clawback Policy
. This Award is subject to the terms of the Company's recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Award or any shares of Common Stock or other cash or property received with respect to the Award (including any value received from a disposition of the shares acquired in respect of the Award).
|
|
/s/ Paul Marciano
|
Signature
|
|
Paul Marciano
|
Print Name
|
|
____________________________________
|
Employee ID
|
|
1.
|
Definitions; Incorporation of Plan Terms
. Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan, except where a capitalized term is defined in the Executive Employment Agreement between the Company and the Grantee, effective February 3, 2013 (the “
Employment Agreement
”), and this Agreement indicates the definition used in the Employment Agreement shall apply for purposes of this Agreement as well. This Award and all rights of the Grantee under this Agreement are subject to, and the Grantee agrees to be bound by, all of the terms and conditions of the Plan, incorporated herein by this reference. Except as specifically provided in this Agreement, in the event of any conflict or inconsistency between the Plan and this Agreement, the Plan shall govern.
|
2.
|
Grant of Restricted Stock Units
. The Company hereby grants to the Grantee as of the Date of Grant (set forth above) a right to receive a “target” of 143,700 shares of the Company's common stock subject to the terms, conditions, and restrictions set forth herein (the “
Restricted Stock Units
,” and such number of Restricted Stock Units, the “
Target Number of Restricted Stock Units
”). As used herein, the term “Restricted Stock Unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of the Company's common stock, par value $0.01 per share (the “
Common Stock
”), solely for purposes of the Plan and this Agreement. The Restricted Stock Units shall be used solely as a device for the determination of the number of shares of Common Stock to eventually be delivered to the Grantee if such Restricted Stock Units vest pursuant to this Agreement. The Restricted Stock Units shall not be treated as property or as a trust fund of any kind. The Grantee shall have no rights as a stockholder of the Company, no dividend rights (except as expressly provided in Section 4 with respect to Dividend Equivalent rights) and no voting rights with respect to the Restricted Stock Units and any shares of Common Stock underlying or issuable in respect of such Restricted Stock Units (“
Award Shares
”) until such shares of Common Stock are actually issued to and held of record by the Grantee.
|
3.
|
Vesting
.
|
A.
|
The Grantee shall be credited with a number of Restricted Stock Units equal to the Target Number of Restricted Stock Units multiplied by a “
Vesting Percentage
” determined based on the Company's Earnings from Operations (as defined below) for the last three quarters of the Company's 2014 fiscal year (the “
Performance Period
”) in accordance with the following table:
|
Earnings from Operations for Performance Period
|
|
Vesting Percentage
|
Below Threshold
|
|
0%
|
Threshold
|
|
50%
|
Target
|
|
100%
|
Stretch or Above
|
|
150%
|
B.
|
The “Threshold,” “Target” and “Stretch” levels of Earnings from Operations to be used to determine the Vesting Percentage under Section 3(A) will be established by the Committee in connection with the grant of the Award.
|
C.
|
For purposes of this Award, “
Earnings from Operations
” means: the Company's earnings from operations for the Performance Period as calculated in accordance with generally accepted accounting principles (“
GAAP
”), but adjusted (without duplication) to exclude the financial statement impact of the following items:
|
i.
|
any charges or accruals incurred for the Performance Period for litigation matters, but only where such charges or accruals for any particular matter exceed $500,000 for the Performance Period;
|
ii.
|
restructuring charges incurred for the Performance Period related to employee severance related costs, store closure related costs and other real estate closure related costs;
|
iii.
|
any new changes in accounting standards announced during the Performance Period that are required to be applied during the Performance Period in accordance with GAAP, and
|
iv.
|
acquisitions and costs associated with such acquisitions and the costs incurred in connection with potential acquisitions that are required to be expensed under GAAP.
|
D.
|
Except as otherwise expressly provided in Sections 7 and 8 herein, the Credited Restricted Stock Units shall vest on the second (2
nd
) anniversary of the last day of the Performance Period (the “
Vesting Date
”); provided that the Grantee has been continuously employed with the Company from the Date of Grant through the Vesting Date. Except as specifically provided herein, employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Grantee to any proportionate vesting.
|
4.
|
Dividend Equivalents
. If a cash dividend is paid with respect to the Common Stock after the end of the Performance Period (or, if earlier, following the occurrence of a Change in Control), and while any Restricted Stock Units subject to the Award are outstanding, the Grantee shall be credited with an amount in cash equal to the dividends the Grantee would have received if he had been the owner of the shares of Common Stock subject to such outstanding Credited Restricted Stock Units; provided, however, that no amount shall be credited with respect to shares that have been delivered to the Grantee as of the applicable dividend record date. Any amounts credited under this Section 4 (“
Dividend Equivalents
”) shall be subject to the same terms and conditions as the Credited Restricted Stock Units to which they relate and shall vest and be paid (or, if applicable, be forfeited) at the same time as the Credited Restricted Stock Units to which they relate.
|
5.
|
Delivery of Shares
. Except as otherwise provided in Section 8 below with respect to a Change in Control, the Company shall deliver or cause to be delivered to the Grantee the number of Award Shares subject to any Restricted Stock Units that vest pursuant to the terms hereof on (or within three business days following) the Vesting Date. Any Dividend Equivalents described in Section 4 above related to such Award Shares shall be paid in cash at the same time as the delivery of the Award Shares under this Section 5. Notwithstanding the foregoing: (a) in the event of the Grantee's death or Disability (as such term is defined for purposes of Section 409A of the Code), then such shares shall be settled as soon as administratively practicable after (and in all events within 90 days after) such event; and (b) in the event of the Grantee's “separation from service” (as such term is defined for purposes of Code Section 409A) upon or within two years following a Section 409A Change in Control (as such term is defined in Section 8(A)), then such shares shall be settled as soon as administratively possible after (and in all events within ten days after) such event (subject to Section 10(C)).
|
6.
|
Adjustments Upon Specified Events
. Upon the occurrence of certain events relating to the Company's Common Stock contemplated by Section 16(b) of the Plan, the Committee will make adjustments, if appropriate, in the number of Restricted Stock Units and the number and kind of securities subject to the Award.
|
7.
|
Effect of Certain Cessations of Employment
.
|
A.
|
If, at any time prior to the Vesting Date, the Grantee's employment is terminated by the Company without “Cause” (as defined in the Employment Agreement) or by the Grantee for “Good Reason” (as defined in the Employment Agreement)
and
a Change in Control has not previously occurred, the Award will vest as of the date of such termination of the Grantee's employment (or, if later, the last day of the Performance Period) with respect to a number of Restricted Stock Units equal to (i) the Credited Restricted Stock Units as determined under Section 3, multiplied by (ii) a fraction, the numerator of which is the number of days of the Grantee's employment between the first day of the Performance Period and the date of such termination of the Grantee's employment, and the denominator of which is the total number of days between the first day of the Performance Period and the Vesting Date.
|
B.
|
If, at any time prior to the Vesting Date, the Grantee's death or Disability (as such term is defined in the Employment Agreement) occurs while the Grantee is employed by the Company, the Award will vest as of the date of such event with respect to the number of Credited Restricted Stock Units as determined under Section 3.
|
C.
|
If the Grantee's employment terminates for any other reason, this Award and the Restricted Stock Units subject hereto, to the extent outstanding and unvested as of the date of such termination of employment, shall terminate and be cancelled as of the date of such termination of employment. Sections 14(a) and 14(b) of the Plan shall not apply to the Award.
|
D.
|
For purposes of clarity, any Restricted Stock Units that vest pursuant to this Section 7 (and any Dividend Equivalents related thereto) shall still be paid at the applicable time set forth in Section 5.
|
8.
|
Change in Control
. Notwithstanding anything to the contrary in Section 3, Section 5 or Section 7 of this Agreement or any provision of the Plan, the following provisions shall apply upon a Change in Control (as defined in the Employment Agreement):
|
A.
|
If a Change in Control occurs and this Award (to the extent outstanding) is
not
continued following such event or assumed or converted into restricted stock units of any successor entity to the Company or a parent thereof (the “
Successor Entity
”), the Award will vest as of the date of such Change in Control with respect to the number of Credited Restricted Stock Units as determined under Section 3 (or, if the Change in Control occurs before the end of the Performance Period, the Target Number of Restricted Stock Units), and such Restricted Stock Units (and any related Dividend Equivalents) shall be paid at the time(s) otherwise provided in Section 5; provided that if such Change in Control constitutes a “change in the ownership or effective control” of the Company, or a
|
B.
|
If the Award (to the extent then outstanding) is continued following a Change in Control or is assumed or converted into restricted stock units of any Successor Entity, the continued employment requirement set forth in Section 3(D) above (and the accelerated vesting provisions set forth in Section 7(A) and 7(B) above) shall continue to apply following such Change in Control; provided, however, that if a termination of the Grantee's employment described in Section 7(A) above occurs after a Change in Control and prior to the Vesting Date, the Award will vest as of the date of such termination of the Grantee's employment with respect to the number of Credited Restricted Stock Units as determined under Section 3 (or, if such termination occurs before the last day of the Performance Period, the Target Number of Restricted Stock Units). Any Restricted Stock Units (and any related Dividend Equivalents) that vest pursuant to this Section 8(B) shall be paid at the time(s) otherwise provided in Section 5.
|
9.
|
Restrictions on Transfer
. The Grantee may not sell, assign, transfer, pledge, encumber or otherwise alienate, hypothecate or dispose of this Award or the Grantee's right hereunder to receive Award Shares, except as otherwise provided in the Committee's sole discretion consistent with the Plan and applicable securities laws.
|
10.
|
Taxes
.
|
A.
|
The settlement of this Award is conditioned on the Grantee making arrangements reasonably satisfactory to the Company for the withholding of all applicable federal, state, local or foreign taxes as may be required under applicable law.
|
B.
|
It is intended that any amounts payable under this Agreement shall either be exempt from or comply with Section 409A of the Code (including the Treasury regulations and other published guidance relating thereto) (“
Code Section 409A
”)
|
C.
|
If the Grantee is a “specified employee” within the meaning of Treasury Regulation Section 1.409A-1(i) as of the date of the Grantee's “separation from service” (as such term is defined for purposes of Code Section 409A), the Grantee shall not be entitled to any payment or benefit pursuant to this Award until the earlier of (i) the date which is six (6) months after the Grantee's separation from service for any reason other than death, or (ii) the date of the Grantee's death. The provisions of this Section 10(C) shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A. Any amounts otherwise payable to the Grantee upon or in the six (6) month period following the Grantee's separation from service that are not so paid by reason of this Section 10(C) shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after the Grantee's separation from service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of the Grantee's death).
|
D.
|
It is intended that this Award qualify as “performance-based compensation” for purposes of Section 162(m) of the Code and the provisions of this Agreement shall be construed and interpreted consistent with that intent.
|
11.
|
Compliance
. The Grantee hereby agrees to cooperate with the Company, regardless of Grantee's employment status with the Company, to the extent necessary for the Company to comply with applicable state and federal laws and regulations relating to the Restricted Stock Units.
|
12.
|
Notices
. Any notice required or permitted under this Agreement shall be deemed given when personally delivered, or when deposited in a United States Post Office, postage prepaid, addressed, as appropriate, to the Grantee either at the address on record with the Company or such other address as may be designated by Grantee in writing to the Company; or to the Company, Attention: Stock Plan Administration, 1444 South Alameda Street, Los Angeles, California 90021, or such other address as the Company may designate in writing to the Grantee.
|
13.
|
Failure to Enforce Not a Waiver
. The failure of the Company or the Grantee to enforce at any time any provision of this Agreement shall in no way be construed to be a waiver of such provision or of any other provision hereof.
|
14.
|
Governing Law
. This Agreement shall be governed by and construed according to the laws of the State of Delaware, without regard to Delaware or other laws that might cause other law to govern under applicable principles of conflicts of law. For purposes of litigating any dispute that arises under this Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation shall be conducted in the courts of Los Angeles County, or the federal courts for the
|
15.
|
Electronic Delivery
. The Company may, in its sole discretion, decide to deliver any documents related to the Restricted Stock Units awarded under the Plan or future restricted stock or restricted stock units that may be awarded under the Plan by electronic means or request Grantee's consent to participate in the Plan by electronic means. Grantee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.
|
16.
|
Severability
. The provisions of this Agreement are severable and if any one or more provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
|
17.
|
Amendments
. This Agreement may be amended or modified at any time by an instrument in writing signed by both parties.
|
18.
|
Agreement Not a Contract of Employment
. Neither the grant of the Restricted Stock Units, this Agreement nor any other action taken in connection herewith shall constitute or be evidence of any agreement or understanding, express or implied, that the Grantee is an employee of the Company or any subsidiary of the Company.
|
19.
|
Committee's Powers
. No provision contained in this Agreement shall in any way terminate, modify or alter, or be construed or interpreted as terminating, modifying or altering any of the powers, rights or authority vested in the Committee or, to the extent delegated, in its delegate pursuant to the terms of the Plan or resolutions adopted in furtherance of the Plan, including, without limitation, the right to make certain determinations and elections with respect to the Restricted Stock Units.
|
20.
|
Termination of this Agreement
. Upon termination of this Agreement, all rights of the Grantee hereunder shall cease.
|
21.
|
Clawback Policy
. This Award is subject to the terms of the Company's recoupment, clawback or similar policy as it may be in effect from time to time, as well as any similar provisions of applicable law, any of which could in certain circumstances require repayment or forfeiture of the Award or any shares of Common Stock or other cash or property received with respect to the Award (including any value received from a disposition of the shares acquired in respect of the Award).
|
1.
|
Base salary of $400,000.00 per year, with exempt status, paid in accordance with the Company's normal payroll practices.
|
2.
|
You will be eligible to participate in GUESS?, Inc.'s Executive Bonus Program, which currently bases awards on individual performance and objectives, department, and Company objectives. As a participant in this plan, your bonus opportunity may include both cash and long term equity incentives as a percentage of your base salary, with an annual target of 40% for cash bonus and 60% for the long term incentive equity component. With respect to the Company's fiscal year ending February 1, 2014, the Bonus will be pro-rated.
|
3.
|
In addition to the compensation set forth above, and subject to approval by the GUESS?, Inc. Compensation Committee at its next meeting, you will be granted the following equity compensation pursuant to the GUESS?, Inc. Equity Incentive Plan:
|
(a)
|
Non-qualified options to purchase 18,000 shares of the Common Stock of GUESS?, Inc. with an exercise price equal to the closing price of the Common Stock on the grant date. Such stock options will vest during your employment over a four-year period as follows: one-fourth of your options will vest on each anniversary of the date of grant until fully vested.
|
(b)
|
Restricted stock in the amount of 6,000 shares of Common Stock subject to your signing of a restricted stock agreement with standard terms and conditions for restricted stock awards as determined by the Compensation Committee. Among other conditions, you will be required to pay the par value of one cent ($.01) per share of your restricted stock on the date of grant. Your restricted stock will vest over a four-year period as follows: one-fourth of your shares will vest on each anniversary of the date of grant until fully vested.
|
4.
|
Medical, dental, life, vacation and disability benefits commensurate with your position at GUESS?, Inc. You will accrue vacation benefits at the rate of four weeks per year. You will be provided with a summary and details of these benefits when you begin employment with the Company.
|
5.
|
Relocation expenses incurred during the move from Lugano, Switzerland to Los Angeles, CA will be provided by GUESS?, Inc. Please note that these expenses are considered income for IRS purposes, and you will be taxed on this amount, including applicable payroll taxes. Your relocation will be coordinated through GUESS?, Inc. and Professional Relocation & Consulting Services. If you voluntarily resign from GUESS?, Inc. within two years of your hire date, you will be responsible to reimburse GUESS?, Inc. for all relocation expenses. After your first year of service, these expenses will be pro-rated per year (see attached schedule A). The expenses will include:
|
6.
|
If GUESS?, Inc., should terminate your employment at any time for any reason, other than for cause, you shall be entitled (subject to the execution of the Company's standard Settlement and Release Agreement) to payments in the amount of six (6) months base salary (at the rate of the date of termination), paid in accordance with the Company's normal payroll practices. If you begin full-time employment, part-time employment or consulting engagements prior to the end of such six month period following your termination, which includes compensation in an amount equal or greater than your compensation at GUESS?, Inc., any payments due to you under this subsequent paragraph shall be forfeited. If you accept and begin employment prior to the end of the six month period at a salary lower than your base salary at GUESS?, Inc., GUESS?, Inc., will pay you the difference in compensation for this period. Given the important nature of your position, the company requests, to the extent practicable, that you please provide 6 months advance notice in the event you elect to terminate your employment with the Company. Nothing in the foregoing is intended in any way to alter the at-will nature of your employment.
|
Service Period
|
Reimbursement
|
First year (through first anniversary date)
|
All costs incurred
|
Second year (through second anniversary date)
|
½ of all costs incurred
|
|
|
1.
|
Base salary of $550,000 per year, with exempt status, paid in accordance with the Company's normal payroll practices.
|
2.
|
You will be eligible to continue to participate in GUESS?, Inc.'s Executive Bonus Program, which currently bases awards on individual performance and objectives, department, and Company objectives. As a participant in this plan, your bonus opportunity may include both cash and long term equity incentives as a percentage of your base salary, with an annual target of 50% for cash bonus and 60% for the long term incentive equity component.
|
3.
|
In addition to the compensation set forth above and subject to approval by the GUESS?, Inc. Compensation Committee, you will be granted the following equity compensation pursuant to the GUESS?, Inc. Equity Incentive Plan:
|
(a)
|
Non-qualified options to purchase 30,000 shares of the Common Stock of GUESS?, Inc. with an exercise price equal to the closing price of the Common Stock on the grant date. Such stock options will vest during your employment over a four-year period as follows: one-fourth of your options will vest on each anniversary of the date of grant until fully vested.
|
(b)
|
Restricted stock in the amount of 20,000 shares of Common Stock subject to your signing of a restricted stock agreement with standard terms and conditions for restricted stock awards as determined by the Compensation Committee. Among other conditions, you will be required to pay the par value of one cent ($.01) per share of your restricted stock on the date of grant. Your restricted stock will vest over a four-year period as follows: one-fourth of your shares will vest on each anniversary of the date of grant until fully vested.
|
4.
|
Medical, dental, life, vacation and disability benefits commensurate in accordance with your position at GUESS?, Inc. You will accrue vacation benefits at the rate of four weeks per year.
|
5.
|
If the Company should terminate your employment at any time for any reason, other than for cause, you shall be entitled (subject to the execution of the Company's standard Settlement and Release Agreement) to payments in the amount of four (4) months base salary (at the rate of the date of termination), paid in accordance with the Company's normal payroll practices. If you begin full-time employment, part-time employment or consulting engagements prior to the end of such four (4) month period following your termination, which includes compensation in an amount equal or greater than your base salary at the Company, any payments due to you under this paragraph shall be forfeited. If you accept and begin employment or consulting engagements prior to the end of such four (4) month period with compensation in an amount lower than your base salary at GUESS?, Inc., the Company will pay you the difference between your new compensation and your base salary at the Company until the end of such four (4) month period. Given the important nature of your position, the Company requests, to the extent practicable, that you please provide four (4) months advance notice in the event you elect to terminate your employment with the Company. Nothing in the foregoing is intended in any way to alter the at-will nature of your employment.
|
a)
|
If your employment is terminated in circumstances that would trigger the above severance benefit, the Company will provide you the form of Settlement and Release Agreement not later than seven (7) days after the date your employment is terminated;
|
b)
|
You will have 21 days within which to consider, execute and return the Settlement and Release Agreement to the Company (unless a longer period of time for you to consider the Settlement and Release Agreement is required under applicable law);
|
c)
|
If you do not timely provide the Company with the executed Settlement and Release Agreement, or if you revoke your Settlement and Release Agreement under any revocation right afforded by applicable law, the Company will have no obligation to pay you the severance benefit; and
|
d)
|
If you timely provide the Company with your executed Settlement and Release Agreement, and you do not revoke your Settlement and Release Agreement, your severance benefit will be paid as follows: (i) the first installment of your severance benefit will be paid to you on (or within 10 days following) the 60
th
day following the termination of your employment with the Company and will include any severance that would have been paid to you during that 60-day period had your salary continued during that period, and (ii) the remaining portion of your severance benefit will be paid in equal installments on regularly scheduled paydays in accordance with the Company's normal payroll practices during the remainder of your severance period. Severance payments will be subject to applicable tax withholding.
|
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 9, 2013
|
By:
|
/s/ PAUL MARCIANO
|
|
|
|
Paul Marciano
Chief Executive Officer and
Vice Chairman of the Board
|
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 9, 2013
|
By:
|
/s/ SANDEEP REDDY
|
|
|
|
Sandeep Reddy
Chief Financial Officer
|
•
|
the Quarterly Report on Form 10-Q of the Company for the period ended
August 3, 2013
, 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 9, 2013
|
By:
|
/s/ PAUL MARCIANO
|
|
|
|
Paul Marciano
Chief Executive Officer and
Vice Chairman of the Board
|
•
|
the Quarterly Report on Form 10-Q of the Company for the period ended
August 3, 2013
, 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 9, 2013
|
By:
|
/s/ SANDEEP REDDY
|
|
|
|
Sandeep Reddy
Chief Financial Officer
|