Guess Inc. (NYSE:GES), currently trading at $13.52 and showing strong financial health according to InvestingPro metrics, announced the immediate resignation of board member Thomas J. Barrack Jr. on Monday, citing personal reasons rather than any disagreement with the company's operations or policies. The $692.61 million market cap company, which currently trades at an attractive P/E ratio of 7.63, appointed Christopher N. Lewis (JO:LEWJ) as a new independent director effective Tuesday, following the recommendation of the Nominating and Governance Committee.
Lewis, who brings a wealth of experience from his tenure as Chief Legal Officer and General Counsel at financial services firm Edward Jones, will serve on the Board until the 2025 annual shareholders meeting. He is recognized for his leadership and commitment to diversity and inclusion. His previous roles include serving as Special Counsel at Duane Morris LLP and as an associate at K&L Gates. Lewis also contributes to the boards of several nonprofit organizations.
As part of his compensation, Lewis will receive an annual retainer of $35,000 and meeting fees of $1,500 per attended Board and committee meeting. Additionally, he was granted 4,914 shares of restricted stock under the company's 2004 Equity Incentive Plan, vesting on the first anniversary of the grant, at the next annual shareholders meeting, or in the event of a company change in control.
Lewis's appointment is a result of the Stipulation and Agreement of Compromise, Settlement, and Release with the Employees Retirement System of Rhode Island (ERSRI). This settlement required Guess Inc. to select one new independent director by the 2025 Annual Meeting of Shareholders, based on ERSRI's recommendation and mutual agreement with the company.
In other recent news, Guess Inc. has been experiencing a series of developments. The company reported a 13% rise in Q3 revenue, reaching $739 million, largely due to the acquisition of the Rag and Bone brand. However, they faced challenges in the North American and Asian retail markets due to decreased store traffic and shifting consumer spending habits. In response, Guess revised its full-year revenue guidance to 7-8% growth and adjusted its EPS outlook to $1.85-$2.00.
Jefferies and Telsey Advisory Group have both updated their outlooks on Guess. Jefferies analyst Corey Tarlowe maintained a Hold rating but cut the price target to $14, citing pressure on North American retail trends. Similarly, Telsey Advisory Group maintained a Market Perform rating but reduced its price target to $18 due to macroeconomic pressures and disappointing sales figures.
Despite these challenges, Guess continues to invest in marketing and the expansion of the Rag and Bone brand. CEO Carlos Alberini expressed confidence in the company's long-term growth and the potential of new brand initiatives.
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