Guess Considers Selling Its Stock to WHP Global as Retail Brand Faces Declining Sales and Mall Traffic Across the U.S.

A Bold Move for Guess as It Weighs $633 Million Offer from WHP Global

Guess, once a staple in malls across the United States, is now considering a significant shift in its business strategy.

The fashion brand, known for its denim and accessories, has received an offer from WHP Global—a company with a portfolio that includes brands like Toys R Us, Isaac Mizrahi, and Anne Klein.

The deal, estimated at around $633 million, could potentially lead to Guess removing its stock from public trading markets, signaling a major change for the iconic brand.

The Rise and Fall of Guess in the Fashion World

Guess made its mark in the 1980s, introducing its now-famous light-wash jeans with a distinct “3-zip Marilyn” design.

The red triangle logo stitched into the back pocket became a symbol of the brand’s appeal.

Over the years, Guess has tried to regain its former glory, relying heavily on provocative and attention-grabbing ad campaigns.

Celebrities like Amber Heard, Claudia Schiffer, and Drew Barrymore helped keep the brand relevant, with its risqué shoots featuring bikini-clad models like Jennifer Lopez and an Anna Nicole Smith look-alike.

However, despite these efforts, customer interest has waned, with store visits across the country significantly down in 2025.

Store Visits Show Mixed Results Across the U.S.

Recent data from Placer.ai shows a concerning trend for Guess, with store visits down nearly 40% in New York and 29% in New Jersey.

However, some areas, like California, Colorado, and Michigan, have seen modest increases in foot traffic.

This decline in interest has left Guess facing tough decisions about its future.

WHP Global’s offer to purchase 57% of Guess’ stock at $13 a share could provide the brand with a fresh start, although it still needs approval from the Guess board.

WHP Global’s Expansion Plans and the Potential for Growth

WHP Global has a history of acquiring and revamping nostalgic brands that have lost some of their shine.

Neil Saunders, Managing Director at GlobalData, suggests that Guess could benefit from this strategy.

With the success of their recent purchase of Rag & Bone, which helped boost Guess’ earnings in 2024, WHP sees potential for expanding Guess’ reach and reviving its appeal.

However, experts caution that just buying Guess isn’t enough.

The brand will need a major boost of energy and innovation to regain its previous customer base and attract new shoppers.

Challenges Facing the Fashion Industry Amid Retail Decline

Guess’ potential deal with WHP comes at a time when the fashion industry, particularly in the mid-tier and designer segments, is experiencing major challenges.

Rising inflation, shrinking mall traffic, and a shift toward online shopping have all contributed to a tough retail environment.

Major fashion houses like Versace and Gucci are undergoing leadership changes, while more affordable brands face existential threats from online retailers like Temu and Shein, who offer stylish options at lower prices.

Traditional malls, where Guess once thrived, continue to struggle with declining foot traffic, which has led to widespread store closures.

The Growing Trend of Store Closures and Retail Struggles

The retail landscape is shifting rapidly, and Guess is not alone in facing these challenges.

Brands like Forever 21 and Billabong have filed for bankruptcy, with all their stores set to close.

Department stores like Kohl’s are also bracing for slower sales, with projections showing a decline of up to 7% this year.

Experts predict that over 15,000 stores will close in 2025, nearly double the number of closures in 2024.

This dramatic shift is reshaping the way consumers shop and how retailers must adapt to survive.

Guess’ Future Remains Uncertain as It Weighs Options

As Guess continues to evaluate its options, the potential sale to WHP Global offers a glimpse of hope for a brand that once ruled the malls.

However, the deal is not finalized yet, and the brand’s future depends on its ability to adapt and innovate in an ever-changing retail landscape.

Will Guess find a way to regain its relevance, or will it become another casualty in the ongoing retail crisis? Only time will tell.