I think that once a huge clothing and jeans – not in American Malls has announced that it will close 20 stores this year.
The company said it focuses on 'underperforming' locations, but has not revealed which stores will close.
“At the end of the year we expect to reduce our North -American shopping cleft by around 20 stores,” said CEO of the company, Carlos Alberini, during the company's profit call.
“Traffic is falling in our stores, has been sustained.”
Guess reported earning $ 84 million during the 2024 sales season that ended in March.
It was a decrease of 30 percent compared to the 2023 season.
Shop visits in February continue to fall, including a regional plum of almost 40 percent in the state of New York and 29 percent in New Jersey, according to Placer.ai.
Stores in California (an increase of 7 percent), Colorado (an increase of 9 percent) and Michigan (an increase of 16 percent) reported an increased interest in the brand.
The company became an iconic jeans seller with by famous loaded advertising campaigns (Sydney Sweeney)
The decision to close the stores is a lifeline of $ 663 million as Guess debates.
The company said it received a takeover bid from WHP Global, the same company that has Toys R US, Isaac Mizrahi, Vera Wang and Anne Klein.
“This is a typical game from WHP Global,” Neil Saunders, the director of the retail trade in Globaldata, told DailyMail.com earlier.
“They see gamble as a brand that they can grow and develop through their operational model and distribution network.”
Both brands have a history of collaboration in the past: in April 2024 the companies piled up money together to buy designer Bag Store Rag & Bone.
Rag & Bone was a surprise hit for the brands, which gave the company a revenue growth boost at the end of 2024 and defeated the expectations of Wall Street.
WHP Global offered to buy public shares from the retailer for $ 13 per share.
The company ended on April 4 to act around $ 11.
Council said the 20 'underperforming' -stores in North America closed
The company said it dropped the sale
Nevertheless, Saunders believes that every acquisition of the fashion brand-that once shocked the audience with advertisements with Sydney Sweeney as an Anna Nicole Smith Look-Alike and a bikini-bearing Jennifer Lopez with significant investments should come.
“Guess is known, but it has potential for expansion and WHP wants to do this,” he said.
“However, they will have to inject more energy and excitement into the GIS offer and expand the distribution of the brand.”
Gues is hardly the only retailer who wants to cut back in the US in the US this year.
Experts predict that a record of 15,000 stores in the US will close due to a huge number of bank, pharmacy and store closures.
