Due to the loss of Covid-19 pandemic, American fashion brand GUESS plans to close 100 stores in the next 18 months or about 9% of its network.
Photo source: BOF
According to the Bloomberg report, GUESS Chief Executive Carlos announced on Wednesday that many retailers' leases are about to expire, so this provides management with conditions to renegotiate terms.
“The recent stock performance and expected demand under our new-normal model made very clear that our store portfolios around the world could be optimized to increase profitability,” Alberini said on a conference call with analysts.
GUESS reduced expenses by closing the retailer and laying off 150 Los Angeles headquarters employees. Management has also reduced salaries by as much as 70% and eliminated all non-"critically necessary" expenses.
According to reports, GUESS shares fell as much as 24% to $9.71 (RM 41.6 ringgit) on Wednesday, extending the stock’s year-to-date decline to about 52%. When excluding currency fluctuations, sales fell 50% in the company’s first-quarter that ended May 2, largely due to prolonged store shutdowns during the virus outbreak.
Cover photo: BOF | Just Style
