Guess to close 60 stores in US; expand overseas | Retail News USA
Home » News » Retailers News » Guess To Close 60 Stores In Us Plans To Expand Overseas

Guess to close 60 stores in US; expand overseas

Share: 
      Newsletter

READ MORE ON Apparel RetailerExpansionGuessRetailer News USA

Guess Store

Image Courtesy: ashley-yeen.com

Fashion brand Guess has announced to close 60 under-performing stores in the USA this fiscal year, with more than 100 stores on the chopping block during the 2018 fiscal year to focus on profitability improvements. The closure announcement is made as Guess’ fourth-quarter results fell short of what the company projected.

Victor Herrero, CEO, Guess commented, “We are seeing in the US market a significant drop on traffic, which is leading us on the fourth quarter to a more promotional environment,” adding, “And at the same time, this is basically, as a consequence, declining our margins.” Though he expressed his optimism that Guess will improve its operating income by US $ 16 million annually through the new round of closures once they are complete later this year.

The brand has acquired a revenue up with a 3 per cent gain to US $ 679.3 million, slightly less than the 4 per cent growth rate that investors had expected. In the USA and Canada, Guess’ same-store sales (including e-commerce) fell 7 per cent in US dollars and 7.4 per cent in constant currency terms.

Also ReadGuess taps increase in net revenue

Herrero and CFO Sandeep Reddy outlined an aggressive strategy to renovate profits in the brand’s US operations through a store rationalization approach involving rent re-negotiation and closures. According to Reddy, it’s quite different scenario for the brand’s stores outside of North America, however. This year, Guess will open 60 stores in Europe, where nearly half of its sales come from wholesale, and another 35 locations in Asia following surge in the revenue.

It’s worth mentioning here Guess operates 945 retail stores in the Americas, Europe and Asia out of which around 400 stores are located in the USA.

“Basically what we are trying to do is to become very profitable in the US and trying to grow anywhere else. For example: For the last six quarters, we’ve been seeing positive trend in Europe; for the last two quarters we’ve been seeing very positive trend in Asia. So, what we are trying to do is rebalance a little bit our business between the international and the domestic,” concluded Herrero.

 

Have some news? Let us know on news@apparelresources.com

Comments are closed.

Recommended by Apparel Resources

JD.com invests £ 315.5 million in Farfetch

A strategic deal has been inked between Farfetch, a global fashion e-commerce platform and JD.com, one of China's biggest e-commerce companies, to help...

Nordstrom Rack to open in Wisconsin (US)

Nordstrom, US-based leading fashion specialty retailer, has announced to open a Nordstrom Rack store at Bayshore Town Center in Glendale, Wisconsin, USA. The...

Sears Canada files for bankruptcy

Sears Canada Inc. has announced that Sears Canada and certain of its subsidiaries have applied in Ontario Superior Court of Justice (Commercial List)...

Old Navy opens maiden store in Vietnam

Fashion brand Old Navy has opened its first store in Vietnam. The store, which is located on the lower B1 floor of Vincom...

The Children’s Place to open stores across Southeast Asia

The Children’s Place, the largest pure-play children’s speciality apparel retailer in North America, is all set to unveil new stores across Southeast Asia....

Burberry’s Chairman to depart

Sir John Peace, who has been the Chairman of UK-based global luxury brand Burberry since 2002, is likely to depart from the company...

Amazon India sees rise in demand for yoga fashion merchandise

E-commerce giant Amazon has witnessed increase in demand for yoga fashion merchandise in Indian market. The retailer has seen a growth of over...

Amazon now lets you try clothes before buying!

Buying clothes online sometimes becomes painful as the pair of shirt and trousers you bought, might just not fit. And then comes even...

Dollar General names new EVP & CIO

Dollar General Corporation, an American chain of variety stores headquartered in Tennessee, has announced appointment of Carman Wenkoff as Executive Vice President and...

C&A Europe appoints new CEO

COFRA Holding has announced appointment of Alain Caparros to the position of Chief Executive Officer (CEO) for its C&A Europe retail business, effective...