The retail environment in America has faced significant challenges in recent years, with a notable decline in the number of anchor stores—large department stores typically located at either end of a mall—closing in record numbers. The enduring effects of the 2020 Covid pandemic have significantly shifted shopping behaviors, potentially altering them permanently.
The pandemic’s impact led to a reliance on online shopping for a wide array of products, including groceries, books, clothing, and makeup, as people stayed home. Foot traffic in malls has not returned to pre-pandemic levels, posing profitability challenges for retailers when fewer consumers are visiting physical stores.
Major retailers such as JCPenney, Macy’s, and Kohl’s have faced significant obstacles, resulting in numerous store closures. Specialty stores, including Victoria’s Secret, have also been affected.
Guess, while not an anchor store in the U.S. or globally, is a notable specialty retailer with over 1,500 stores worldwide, maintaining a longstanding presence in malls. Established in 1981 by the Marciano brothers who immigrated from France, Guess initially gained popularity with a single line of women’s jeans called “The Marilyn,” which featured ankle zippers and became highly sought after. The brand’s provocative advertising further fueled its popularity in the ’80s and ’90s. Over time, Guess expanded its offerings to include various styles of jeans, accessories such as shoes, handbags, and watches.
Currently, Guess operates several brands under its umbrella, including Marciano and G by Guess, and in partnership with WHP Global, acquired rag & bone in 2024. WHP Global also owns other notable denim brands such as Joe’s Jeans and G-star.
Approximately half of Guess’s stores are located in Europe and the Middle East, with 398 stores in Asia and the Pacific, and 221 in the U.S., including 54 in California. The company remains partially owned by two Marciano brothers and CEO Carlos Alberini, who holds a significant share.
In fiscal 2024, Guess reported a 3.3% increase in total net revenue year over year, reaching $2.78 billion. However, profits experienced a significant decline, with Q4 net earnings down 30% year over year to $84 million. In a recent earnings call, Alberini announced plans to close 20 underperforming stores across North America this year, with some closures occurring at lease end and others negotiated with landlords.
Although specific store locations have not been disclosed, Alberini attributed “traffic declines” in retail stores as the primary reason for closures. Despite these closures, Guess plans to expand by opening new stores in Tokyo and West Hollywood. Alberini projected U.S. dollar revenue growth between 3.9% and 6.2% for the full year, driven significantly by the core Guess brand and rag & bone. Store closures are expected to unlock approximately $30 million in operating profits by fiscal 2027.
