Guess Announces Intention To Close 20 ‘Underperforming’ Stores

Fashion retailer Guess is closing several stores across North America. The shopping mall staple intends to shutter at least 20 “underperforming” locations.

The exact Guess locations have not been announced. However, potential stores have been internally identified and will likely close by the end of fiscal year 2026.

“We expect to reduce our North American store fleet by roughly 20 stores by the end of the year, with some of them closing this year at their natural lease end,” said CEO Carlos Alberini during an earnings call. “Traffic declines into our retail stores have persisted.”

The store closures are expected to boost operational profits by $30 million in fiscal 2027. According to Alberini, the North American market will remain crucial to the company’s long-term growth strategy.

As a result, Guess is looking to increase customer engagement as well as boost traffic to its stores and website. With the help of marketing firm General Idea, the clothing chain will use social media to strengthen brand awareness.

Guess Financial Report

For the fourth quarter of 2025, profit fell for Guess. Adjusted net earnings hit $77.7 million, a 30% drop compared to Q4 2024. Yet, adjusted net revenue did rise 5% to $932.3 million. Product sales were up about 4%, reaching $899 million.

For the entire year, adjusted net earnings went down 40%, coming in at $104.5 million compared to fiscal 2024’s $174 million. Net revenue grew 8% in 2025, climbing to $3 billion from $2.78 billion.

In the current fiscal quarter, Guess expects a net revenue increase between 5.8% and 7.5%. A 3.9% to 6.2% revenue increase is predicted for fiscal 2026.

With a somewhat disappointing earnings report, Guess leadership is considering an acquisition offer from WHP Global, which also owns Toys “R” Us and Vera Wang. The takeover deal is reportedly worth $633 million.

“This is a typical play from WHP Global,” Neil Saunders, RetailWire BrainTrust member and managing director of retail at GlobalData, told the Daily Mail. “They see Guess as a brand that they can grow and develop through their operating model and distribution network.”

WHP and Guess have already collaborated on another deal. Together, the companies purchased clothing retailer rag & bone. With its strong ecommerce platform, rag & bone has exceeded revenue projections so far.