LOS ANGELES - Apparel company Guess?, Inc. (NYSE: GES) announced Monday the appointment of Dennis Secor as the Interim Chief Financial Officer, effective the following Monday. Secor, who has a history with the company serving as CFO from 2006 to 2012, returns to fill the position left by Markus Neubrand. Neubrand is departing to pursue opportunities closer to his family but will remain with Guess? until September 30, 2024, to ensure a smooth transition.
Secor's experience in the apparel industry is extensive, with previous roles at Fossil Group (NASDAQ:FOSL), Electronic Arts (NASDAQ:EA) Canada, and Torrid, among others. His tenure at Guess? is noted for his management of finance and accounting functions and support for global growth. Secor also served as Interim CFO for Guess? from April 2022 to July 2023.
Carlos Alberini, CEO of Guess?, expressed gratitude to Neubrand for his service and welcomed Secor's return. "With Dennis's extensive experience and leadership and our strong finance team, we are confident that we will not miss a beat," Alberini said.
Guess? is in the process of searching for a permanent CFO, expected to be based at the company's headquarters in Lugano, Switzerland, with the assistance of an executive search firm.
The appointment comes during a transformative period for Guess?, which recently expanded its portfolio with the acquisition of assets from New York-based fashion brand rag & bone on April 2, 2024. As of May 4, 2024, Guess? operates 1,048 retail stores globally and has a presence in approximately 100 countries through its partners and distributors.
Secor commented on his appointment, highlighting the company's momentum and his readiness to contribute to its ongoing initiatives.
This announcement is based on a press release statement from Guess?, Inc.
In other recent news, apparel brand Guess (NYSE:GES) Inc. has seen significant developments. The company recently settled a fiduciary duty lawsuit initiated by the Employees' Retirement System of Rhode Island, agreeing to pay $250,000 in attorneys' fees and expenses. This resolution allows Guess to focus more on its core business activities.
On the financial front, Guess has increased its European revolving credit facility from €250 million to €350 million, underlining lender confidence and the strategic importance of the region. The interest rate of this facility will be influenced annually by Guess's sustainability performance, including efforts to reduce greenhouse gas emissions and source sustainable materials.
In a strategic move, Guess also expanded its portfolio by acquiring a 50% stake in the fashion brand rag & bone. This acquisition contributed to a 7% year-over-year increase in total revenue and substantial earnings per share growth in the first quarter.
However, despite these positive financial strides, Guess has received revised price targets from Telsey Advisory Group and Jefferies. Both firms lowered their targets due to moderated sales growth and anticipated softer consumer trends. These recent developments reflect the dynamic nature of Guess's business activities.
InvestingPro Insights
As Guess?, Inc. (NYSE: GES) welcomes Dennis Secor back into the fold as Interim CFO, the company's financial health and market performance remain key areas of interest for investors. According to recent data from InvestingPro, Guess? boasts a market capitalization of approximately $1.2 billion, underscoring its significant presence in the apparel industry.
InvestingPro Tips highlight the company's commitment to shareholder returns, with Guess? having raised its dividend for four consecutive years and maintaining dividend payments for 18 consecutive years. This consistent return to shareholders is particularly noteworthy as the company trades at a low earnings multiple, with a P/E ratio of 5.44 and an adjusted P/E ratio for the last twelve months as of Q1 2025 at 5.07. These figures suggest a potentially undervalued stock that could be attractive to value investors.
Furthermore, the company's financial stability is reflected in its strong free cash flow yield, a valuation metric that is emphasized by InvestingPro. This, combined with the fact that Guess? has liquid assets exceeding short-term obligations, provides reassurance about the company's ability to meet its financial commitments and invest in growth opportunities.
For investors seeking more detailed analysis and additional InvestingPro Tips, the platform currently lists 11 tips for Guess?, Inc., available at https://www.investing.com/pro/GES. These insights could further inform investment decisions, especially during this transformative period for the company.
InvestingPro Data also reveals a healthy gross profit margin of 44.26% for the last twelve months as of Q1 2025, indicating efficient cost management and a strong market position. With a 5.33% dividend yield and a positive return on assets of 9.15%, Guess? appears to be balancing growth and profitability, a reassuring sign for investors monitoring the company's performance under the new interim CFO's guidance.
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