Guess? Inc. to go private in $1.4B acquisition

Miami Herald

15 hours ago

Guess? Inc., the Los Angeles-based fashion brand that specializes in denim, is going private in a $1.4-billion deal with Authentic Brands Group.
Under the terms of the deal, the company's co-founders Maurice and Paul Marciano, as well as chief executive Carlos Alberini, will own 49% of its intellectual property. Authentic Brands Group will own 51%.
Shares for Guess jumped more than 25% in midday trading on Wednesday. Shareholders will receive $16.75 per share in cash as a result of the sale, a 26% premium to the stock's closing price on Tuesday.
Current Guess management will continue to run the business and own 100% of the operating company, Guess said in a release.
"We look forward to building on the significant progress we have made to strengthen our organization," Alberini said in a statement. "As a private company benefiting from the perspectives of a globally recognized licensing partner, Guess? will have enhanced flexibility to navigate today's complex operating environment."
Retailers have been squeezed by inflation, high labor costs and uncertainty stemming from President Trump's tariffs, experts said. Forever 21, another Los Angeles-based fashion company that once earned billions in revenue, filed for its second bankruptcy in six years in March. The chain is shutting down its U.S. stores.
Department stores Macy's and Kohl's are also shuttering locations, while other companies are going private or consolidating. The sneakers brand Skechers was taken private in May in a $9.4-billion deal with New York investment firm 3G Capital. Also in May, Dick's Sporting Goods announced it would buy struggling footwear chain Foot Locker for $2.4 billion.
The transaction between Guess and Authentic Brands Group is expected to close in the fourth quarter of Guess' 2026 fiscal year. Authentic Brands owns more than 50 global brands, generating approximately $32 billion in annual system-wide retail sales, the Guess release said. The group owns popular names in fashion and lifestyle, including Champion and Eddie Bauer.
Guess was founded in 1981 by the Marciano brothers, who moved from France to Los Angeles to start their business. The company offers a range of clothing as well as accessories, including handbags and glasses.
In the quarter ended May 3, Guess reported an increase in revenues to $648 million and estimated revenues would continue to increase between 5.5% and 7.4% for the rest of the fiscal year. Shares for the company have risen more than 21% this year.
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