WASHINGTON (dpa-AFX) - Paul Marciano, co-founder and chief executive officer of fashion house Guess? Inc (GES), on Tuesday said he has chosen Inditex executive Victor Herrero as his successor, effective August 2015.
As part of the reshufftle, Paul Marciano will replace his brother Maurice Marciano as executive chairman of the board and will continue serving as chief creative officer.
Maurice Marciano, meanwhile, has been named chairman emeritus by the board and will also continue as director.
'We believe that Victor is the perfect top executive because, in addition to his entrepreneurial spirit, he has unparalleled experience in building a large business in Asia, he has a deep understanding of the current world of retail, and he is extremely knowledgeable in best in class sourcing and supply chain,' said Paul Marciano in a statement.
Victor Herrero joins Guess with more than two decades of experience spanning Europe and Asia. He served as the head of Asia Pacific for fashion retailer Inditex Group, where for about a decade, he was responsible for building Inditex's humongous Asian business. Inditex is known for brands such as Zara and Massimo Dutti. Prior to Inditex, Victor was a management consultant working for Arthur Andersen in Asia.
The CEO succession follows Paul Marciano and Maurice Marciano's working with the board for about a year to select an ideal candidate, in the changing retail environment.
Last month, Guess reported a swung to a first-quarter profit, as better costs control helped offset an 8.4 percent drop in revenue. At the same time, the company detailed a weak outlook for the second quarter, but raised its full year forecast.
Guess has been struggling for the past few quarters, with intense competition in key markets, weak traffic and soft consumer sentiment. The strengthening of the U.S. dollar also hurt results, as the company generates a large chunk of its sales overseas.
As of May 2, Guess directly operated 470 retail stores in the U.S. and Canada and 361 retail stores in Europe, Asia and Latin America.
GES closed Wednesday at $21.16, up $0.04 or 0.19%, on the NYSE. In after hours, the stock gained $0.04 or 0.19%
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