The American fashion label and retailer Guess has experienced a disruption to their operations. The brands CEO Victor Herrero has stepped down unexpectedly after four years in the position.
Herrero’s time with Guess was filled with extreme changes and minimal results. The brand launched a series of aggressive campaigns with celebrity influencers in an attempt to increase brand awareness, particularly among younger consumers. However, the efforts were fruitless and even ended up costing the company. The most damaging period for the brand was in the third quarter of fiscal 2019, where they experienced a $13.4 million loss on $605.4 million revenue.
As a result of the excessively negative responses to his attempt to turn the business around, Herrero has stepped down with a $2.4 million separation agreement.
In his stead, previous CEO Carlis Alberini will be returning to the company, after initially abandoning the brand in 2010 after ten years of service. Maurine Marciano, co-founder of Guess, released a statement celebrating Alberini’s returned. Marciano expressed that he was “excited to have Carlos coming back as CEO. He was instrumental in building the international business in Europe and Asia during his 10-year tenure with the company.”