Home Fashion Guess to shutter 60 stores in the US, focus on profitability

Guess to shutter 60 stores in the US, focus on profitability

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Guess’s fourth-quarter results fell short of what the company had hoped to see, with revenue up with a 3 per cent gain to $679.3 million, slightly less than the 4 per cent growth rate that investors had projected.

Guess to shutter 60 stores in the US, focus on profitability
Despite the US downturn, Guess hopes to build on the good momentum they are experiencing in both Europe and Asia, continuing with their retail expansion plans in these continents

Similarly, adjusted net income was down 28 per cent to $34.6 million, missing the consensus forecast for $0.43 per share in earnings.

The short of expectations results means that the company is reworking its strategy and may close down close to 60 stores in the Americas retail segment to focus on profitability improvements.

The US-based fashion retailer will however, continue to implement supply chain initiatives to improve profits in the country.

The company hopes to build on the good momentum they are experiencing in both Europe and Asia, continuing with their retail expansion plans in these continents as it heads into fiscal year 2018.