Guess will close all of its online and bricks-and-mortar stores in China by month-end, ending 18 years of direct retail operations in one of the world’s most competitive fashion markets.
The company told customers the move reflects “adjustments in its business model.” Parent Authentic Brands Group (ABG) said the withdrawal forms part of “a strategic adjustment in the Chinese market,” adding the brand will focus on developing “a new model in the future.” No structural details or timeline were provided.
Guess’ China operations peaked at more than 250 stores after its 2007 entry, with early appeal among younger consumers. However, the brand scaled back from core shopping districts and shifted its offline network towards outlet centres.
Analysts point to mounting operating costs and weak positioning in livestreaming e-commerce and social commerce. The competitive pressure increased as domestic brands expanded. The closure “may be part of a similar light-asset strategy, analysts believe.”
ABG and Guess completed a restructuring in January that transferred core intellectual property into a new joint venture controlled by ABG with a 51% stake. Guess was subsequently delisted from the New York Stock Exchange.
ABG operates as a brand IP manager and global licensor, with holdings including Reebok, Champion and Forever 21. Its model typically reduces direct operating exposure in favour of regional partners. Forever 21 was relaunched in China through local partners using e-commerce channels following its acquisition.