Guess Inc. is entering a new era with a big addition to the ownership in Authentic Brands Group.
The Los Angeles denim maker and New York-based brand management conglomerate confirmed Friday that the go-private deal for Guess is officially complete. As a result, Authentic Brands owns 51 percent of Guess’ intellectual property. A consortium of management owns the rest, in addition to the stores and the rest of the operating company. That management group consists of founders Maurice Marciano and Paul Marciano, along with Paul’s son Nicolai Marciano, and Guess CEO Carlos Alberini.
Guess Inc. consists of the company’s namesake brand, Marciano, Guess Jeans and Rag & Bone, with the portfolio generating $6 billion in retail sales, according to Authentic and Guess. Authentic said Guess is now its second-largest business in a portfolio of over 50 brands generating $38 billion in global retail sales.
This marks the first time the Marciano family no longer has full control of Guess’ destiny just as it was beginning to make moves to diversify and attract new customers. That includes its push for Generation Z and more sustainably minded shoppers with the launch of Guess Jeans. There was also the 2024 acquisition of Rag & Bone, a roughly $250 million contemporary business based out of New York.
Guess last reported financial results for the quarter ended Nov. 1 in which total revenue was $791.4 million, an increase of 7 percent from the year-ago period.
The company reported $29.4 million in overall profit, compared to a $20.8 million loss during the same time a year ago as a result of a change in senior note values.
The Future
What comes next for Guess remains to be seen.
Authentic’s inventory-light model holds the IPs of heritage brands and taps partnerships with licensing firms to handle design, production, distribution and marketing – all while collecting royalties.
Authentic Brands President Matt Maddox indicated in a release on the closing of the deal that the company’s clearly eyeing category and geographic expansion. That’s no different from what management had mapped out for the business pre-acquisition. There also appears to be interest in “studio-led content development” and “immersive live experiences” for consumers, Maddox said.
In some ways, that would build on more contemporary marketing plays led by Chief New Business Development Officer Nicolai, when he took on a more robust role at the company. Over the years, that’s included Guess’ involvement in ComplexCon when the streetwear festival was still relatively new and the Guess Farmers Market concept that served as a pop-up marketplace for streetwear exclusives and entertainment.
Paul, who is Guess chief creative officer, said the deal with Authentic will take the brand “to the next level.”
“With Authentic’s support, Guess will have enhanced flexibility and additional resources to unlock new growth opportunities for our business on the path ahead,” Alberini said in a statement.
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