Guess? considers acquisition proposal from WHP Global

LOS ANGELES - Guess?, Inc. (NYSE: GES), a renowned apparel and accessories brand with a current market capitalization of $499 million, has announced that it received a non-binding acquisition proposal from WHP Global. The offer, priced at $13.00 per share in cash, aims to purchase the outstanding shares of Guess? not already owned by certain shareholders, including Paul Marciano, Maurice Marciano, and Carlos Alberini, known collectively as the Proposed Rollover Shareholders. According to InvestingPro analysis, the company appears undervalued at its current trading price of $9.70, which is near its 52-week low of $9.24.

The proposal suggests that the transaction would be financed through a mix of equity, third-party debt, and rollover or reinvestment by the Proposed Rollover Shareholders. It presumes the company will continue its business operations normally and maintain its current strategic and operational stance. The company’s strong fundamentals include a P/E ratio of 5.53 and an impressive dividend yield of 12.37%, with InvestingPro noting dividend payments maintained for 18 consecutive years.

In response to the offer, Guess? has set up a Special Committee of independent directors to evaluate the proposal with the aid of external financial and legal advisors. The committee’s objective is to determine the best course of action for the company and its shareholders. Guess? has stated that there is no certainty that a definitive offer will be made, any agreement will be executed, or that the proposed transaction or any other deal will be approved or completed. The company has decided not to provide further commentary on the matter until the Special Committee concludes its assessment or if additional disclosure becomes necessary.

Shareholders of Guess? are advised that no action is required from them at this juncture.

Previously, in April 2024, Guess? partnered with WHP Global to acquire the intellectual property and operating assets of fashion brand rag & bone. This move expanded Guess?’s reach, with direct operation of rag & bone stores in the U.S. and U.K. and distribution through high-end boutiques, department stores, and e-commerce globally.

Guess?, Inc. is known for its contemporary apparel, denim, and an array of other consumer products, distributed through branded stores and various department and specialty stores worldwide. As of November 2, 2024, Guess? operated 1,057 retail stores across Europe, the Americas, and Asia, with an additional 541 stores managed by partners and distributors, spanning approximately 100 countries.

The information in this article is based on a press release statement from Guess?, Inc.

In other recent news, Guess Inc. has been the subject of several notable developments. UBS has adjusted its outlook on Guess, reducing the price target from $15 to $12 and maintaining a Neutral rating. This change reflects anticipated challenges in the company’s fourth-quarter performance, particularly in the Americas retail and Asia markets, with an expected earnings per share shortfall. UBS predicts that Guess will likely issue earnings guidance for fiscal year 2026 that falls short of the current consensus forecast. Additionally, Jefferies analyst Corey Tarlowe has lowered the price target for Guess shares to $14 from $16, maintaining a Hold rating. This adjustment follows discussions with Guess management, highlighting ongoing pressures in the North American retail sector despite some positive trends in wholesale and off-price segments.

Furthermore, Guess Inc. has appointed Christopher N. Lewis as a new independent director following the resignation of Thomas J. Barrack Jr. Lewis, with extensive experience as Chief Legal Officer at Edward Jones, will serve on the Board until the 2025 annual shareholders meeting. His appointment is part of a settlement agreement with the Employees Retirement System of Rhode Island, requiring the selection of a new independent director. These developments reflect Guess Inc.’s ongoing efforts to navigate market challenges and strengthen its governance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.