Guess?, Inc. - GES STOCK NEWS

Guess, Inc. (NYSE: GES) issued a statement responding to Legion Partners' open letter, asserting that Legion's claims are misleading and repetitive. The company emphasizes that it has directly addressed the allegations against Paul Marciano through a special committee investigation. Guess argues that Legion lacks new value creation ideas and is a distraction to management, which has successfully executed its transformation strategy. The annual meeting is scheduled for April 22, 2022, to allow shareholders to vote on issues raised by Legion, aiming to minimize disruption.

Legion Partners Asset Management has issued an open letter to shareholders of Guess? (NYSE: GES), urging them to vote against the re-election of Paul and Maurice Marciano at the upcoming Annual Meeting. The letter highlights ongoing allegations of sexual harassment against Paul Marciano, stating the company's failure to adequately address these issues. Legion argues that the Board's actions are negligent and represent significant risks to the brand and shareholder value. They encourage shareholders to withhold their votes on the Marciano brothers and emphasize the need for leadership change.

Guess?, Inc. has filed definitive proxy materials with the SEC for its Annual Meeting on April 22, 2022. Shareholders of record as of March 23, 2022 can vote on the WHITE proxy card. The management team highlights a successful transformation strategy resulting in the best financial results in a decade, including an operating margin of 11.8% and ROIC of 26%. The Board, comprised of qualified directors, urges shareholders to support its nominees amid challenges from Legion Partners, emphasizing that their removal could hinder value creation.

Legion Partners Asset Management has launched a campaign urging shareholders of Guess (NYSE: GES) to withhold votes for Paul and Maurice Marciano's re-election to the Board. The investor presentation highlights ongoing allegations of sexual misconduct against Paul Marciano, which Legion claims threaten the company's brand and financial performance. The Marciano brothers’ continued presence is seen as detrimental, with the stock reportedly experiencing a "Marciano Discount" relative to peers. Legion emphasizes the need for better governance and has set up a dedicated website for updates.

Guess?, Inc. has initiated an accelerated share repurchase (ASR) program to buy back $175 million of its common stock, reflecting strong corporate confidence and a commitment to enhancing shareholder value. Over the past three years, the company has repurchased $378 million, which represents 28% of outstanding shares. The initial delivery of shares under the ASR is set for March 21, 2022, with final settlement expected by the end of Q3 2022. CEO Carlos Alberini emphasized the company's solid operational performance and growth prospects.

Guess?, Inc. (NYSE: GES) responded to Legion Partners' preliminary proxy statement, asserting that their campaign lacks constructive solutions and distracts from the company's leadership. The Guess Board emphasizes its commitment to shareholder value and finds Legion's actions irresponsible. The company is currently reviewing a Demand for Board Action from Legion and advises shareholders to take no action until the formal proxy statement is released ahead of the Annual Meeting on April 22, 2022.

Guess?, Inc. (NYSE: GES) has appointed Dennis Secor as Interim Chief Financial Officer, effective April 1, 2022. Secor, who previously served as CFO from 2006 to 2012, succeeds Katie Anderson, who is leaving to pursue opportunities elsewhere. The company will conduct a search for a permanent CFO with the assistance of an executive search firm. Secor is expected to support the company through March 2023 during the transition. CEO Carlos Alberini expressed gratitude to Anderson for her contributions and welcomed Secor back to the company.

Guess? Inc. (NYSE: GES) reported a strong Q4 for fiscal 2022, with revenues of $800 million, a 23% increase year-over-year. The operating margin improved to 15.7%, with GAAP EPS at $1.04 and adjusted EPS at $1.14. For FY2022, revenues reached $2.59 billion, marking a 38% growth compared to FY2021. Looking ahead, the company anticipates low-single digit revenue growth and an operating margin of 10.5% for FY2023. Additionally, Guess? plans to initiate a $175 million accelerated share repurchase program to return value to shareholders.

Legion Partners Asset Management has filed preliminary proxy materials opposing the re-election of Paul and Maurice Marciano to the Board of Guess? Inc. (NYSE: GES) at the upcoming 2022 Annual Meeting. Legion believes the brothers pose significant risks to the company due to unresolved allegations of sexual assault and harassment against Paul Marciano. Despite attempts to engage the Board, the Marciano brothers are expected to be re-nominated, prompting Legion's call for shareholders to vote against their continued presence, citing legal, reputational, and moral concerns.