Another popular mall retailer closing stores nationwide for good

Profits were way down in Q4 2024 and the brand must make tough decisions.

Apr 5, 2025 - 16:51

Another popular mall retailer closing stores nationwide for good

The retail climate in America has been rough for the past few years. Anchor stores — i.e., the major department stores you tend to see at either end of a mall — have shuttered in record numbers.

No one could have predicted the long-lasting impact of the 2020 Covid pandemic and how it would alter shopping habits, maybe forever.

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The pandemic kept people at home, and we all started to rely on the convenience of online shopping for everything from groceries and books to clothing and makeup.

Foot traffic in malls has not returned to pre-pandemic levels, and it's hard to stay profitable if no one is walking through your door.

Anchor retailers like JCPenney, Macy's, and Kohl's have faced headwinds and shut multiple locations, as have specialty stores such as Victoria's Secret.

*Brick-and-mortar stores are closing at rapid rates.*
Source: Shutterstock

Guess jeans for women have been popular for decades

While not an anchor store at malls in the U.S. or elsewhere, specialty retailer Guess has more than 1,500 stores around the world and has been a mall staple for decades. The company was founded in 1981 by the four Marciano brothers, who moved to the U.S. from France.

The brothers launched their company with a single style of jeans for women, "The Marilyn" — perhaps the original skinny jean? — which featured zippers at the ankles.

The jeans were a wardrobe must-have for '80s and '90s girlies, their popularity partly driven by the brand's provocative advertising. After their launch, the jeans quickly sold out, and the company eventually added other styles, plus accessories like shoes, handbags and wristwatches.

The company now has several brands under its umbrella, including Marciano and G by Guess, along with its first acquisition, rag & bone, which it acquired in 2024, in partnership with WHP Global. WHP Global also owns other popular denim brands like Joe's Jeans and G-star, among others.

Nearly half of Guess stores are in Europe and the Middle East. There are another 398 stores in Asia and the Pacific and 221 in the U.S., including 54 stores in California.

Two of the Marciano brothers still own the company, although CEO Carlos Alberini owns a significant share of the company.

Guess will close stores in North America

In fiscal 2024, Guess’s total net revenue increased 3.3% year over year to $2.78 billion but profits were way down in Q4, when Guess saw net earnings down 30% year over year to $84 million.

In this month's earning's call, Alberini said the company will close 20 underperforming stores this year across North America. He said some of the stores will close when their leases end and the company will work with landlords to exit the others.

The affected locations have not yet been shared publicly.

Alberini cited "traffic declines" in retail stores as the reason for the closures but also said during the call that Guess plans to open new stores in Tokyo and West Hollywood.

"For the full year, we expect U.S. dollar revenue growth in the range between 3.9% and 6.2%, with the core Guess brand and rag & bone both contributing significantly to that growth," he said.

Closing the stores will unlock around $30 million in operating profits in fiscal 2027, according to Alberini.