What Led To Guess’ Revenue And EBITDA Decline Over The Last Five Years?
Specialty apparel retailer Guess has been delivering a lackluster performance over the past few years on account of several macro-economic and product-related issues. In Europe, persistent weakness in demand and consumption has troubled a number of companies, including Guess, and an economic slowdown in China and South Korea has severely impacted its growth in Asia. In North America, the poor performance of the accessories business, Guess’s pricing strategies, and an industry-wide decline in foot traffic, have all pummeled the retailer’s growth. Apart from these issues, the strengthening dollar has also played against the company. With an aim to turnover its performance in Q2 FY2016 (fiscal year ends in January), Guess’ management appointed Victor Herrero — the executive responsible for building a $4 billion business for Inditex in Asia — as its Chief Executive Officer. Though the company’s lukewarm performance continued over into 2015, it is important to note that Guess has started taking steps towards improving its performance with a special focus on Asia as a major driver for growth.
Have more questions about Guess? See the link below.
- What Is Guess’s Revenue And EBITDA Breakdown?
- How Has Guess’s Revenue And EBITDA Composition Changed Over 2012-2016E?
- Guess Q4 FY2016 Pre-Earnings Report
Notes:
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)