Guess Closing 60 U.S. Stores, Expanding Abroad
Guess announced during its fourth quarter earnings call this week that it will be closing 60 underperforming stores this fiscal year. In the past two years, the retailer — which operates about 400 U.S. locations — has closed 62 U.S. stores, including 10 this past quarter. Guess reported fourth quarter total net revenue increases of 3.2 percent and, in constant currency, a net revenue increase of 4.3 percent worldwide. However, North American retail revenues decreased 6.4 percent in U.S. dollars and 6.3 percent in constant currency.
Total Retail’s Take: It seems like Guess is making the right move by shuttering some U.S. locations. Sales in North America, and particularly in the U.S., are lagging when compared to those in Europe or Asia. Closing stores figures to help Guess stay profitable and avoid bankruptcy like many other mall-based retailers, including BCBG.
