Stock down on news of CEO departure
Guess (GES) stock was down 16.6% at 12:43 pm ET today as the company announced that Victor Herrero would relinquish his role as the CEO, effective February 2. The company named Carlos Alberini, currently serving as the chairman and CEO of Lucky Brand, as its new CEO. Alberini is also replacing Herrero as a director on the Guess board. Alberini had served as the president and chief operating officer of Guess from 2000 to 2010.
Guess didn’t provide any particular reason for the departure of the current CEO. Maurice Marciano, chairman of Guess’s board of directors, is to serve as interim CEO until Alberini assumes his new role.
Guess also announced that co-founder Paul Marciano will continue to serve as chief creative officer. Paul Marciano resigned as executive chairman of Guess’s board in June amid an internal investigation relating to allegations of improper conduct.
Guess’s revenue increased 10.3% in the third quarter of fiscal 2017[1. Q3 of fiscal 2018 ended on November 3] and 12.8% in the first nine months of fiscal 2018. Like other retailers, Guess is also facing intense competition from online retailers. Guess’s recent top-line performance has been driven by its European and Asian operations. Guess is undertaking several initiatives to improve its omnichannel capabilities and enhance its margins by driving operational efficiencies.
The company expects its full-year fiscal 2018 revenue to rise in the 10%–10.5% range. Guess expects its fiscal 2018 adjusted EPS in the $0.96–$1.03 range.