Guess, the popular clothing and accessories brand, announced that it will soon close several underperforming stores as part of changes within the company, including the arrival of a new CFO. If you’re a fan of the brand’s products, here’s where the affected stores will no longer operate.
How many stores will Guess close?
According to the company, the plan is to close around 20 stores.
Which stores will close?
So far, the company has not detailed which specific locations will be closing; however, it mentioned that these stores are located in the United States and parts of North America.
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Why is closing its stores?
Carlos Alberini, CEO of Guess, highlighted that the decline in foot traffic at the brand’s retail stores has continued, leading to a 30% year-on-year decrease in net profits, down to $84 million.
Alberini also mentioned that a special committee of the board has been working on evaluating the acquisition offer from WHP Global, for which they have hired Solomon Partners as financial advisors and Willkie Farr & Gallagher as legal advisors.
As the company considers a closer partnership with WHP, it is also undergoing a partial restructuring of its operations. Although Guess has been managing its business directly in China, it is now considering partnering with a local entity with expertise in the region.
This shift, along with the store closures in North America, is expected to generate approximately $30 million in operational profits for fiscal year 2027. According to Alberini, several potential candidates have already been identified for the transition, which is expected to be completed before the end of the current fiscal year.
In addition to closing unprofitable stores, Guess is focused on enhancing customer interaction and increasing traffic to both its physical stores and website. According to Alberini, 80% of in-store shoppers research online before making a purchase.
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Guess names new CFO
Guess announced in a statement that Alberto Toni, currently the CEO and CFO of luxury group Flos B&B Italia, will replace Dennis Secor as CFO of the company. Secor has been serving as the interim CFO. Toni will officially assume the role in June, following the presentation of Guess’s first-quarter financial results. Secor will continue as executive vice president until September 12.
History of Guess
Guess was founded in 1981 by the Marciano brothers, who left southern France in search of the American dream. Inspired by European style, the brothers reinvented the concept of denim.
The brand debuted at Bloomingdale’s, the first store to receive its products, ordering two dozen pairs of jeans, which sold out within hours. This marked the beginning of a long history of success.
Guess quickly became synonymous with a youthful, sexy, and adventurous lifestyle. Over the years, its iconic ad campaigns captured the public’s attention, turning unknown faces into famous models. In 2004, the company expanded with a new contemporary fashion line called Marciano, aimed at fashion-forward men and women. Three years later, in 2007, the G by Guess concept was launched, inspired by the youthful California lifestyle the Marciano brothers experienced when they moved to the United States.
Today, Guess is a globally recognized brand offering a wide range of products, from denim to clothing and accessories, available in over 80 countries worldwide.
