Guess Names Victor Herrero CEO, Replacing Company Founder

By Cassandra Jaramillo 

Guess Inc. said Tuesday that it named Victor Herrero to replace co-founder Paul Marciano as chief executive of the apparel maker in August.

Mr. Herrero previously worked for retailer Inditex Group, which includes brands Zara, Massimo Dutti and Stradivarius. Most of his experience with Inditex has been in Asia and Europe.

He joins a company that generates big chunks of its sales overseas, including about 46% from Asia and Europe in 2014, but has struggled with the effect of the strong dollar.

Mr. Marciano, who established Guess in 1981 along with his brother Maurice, said he and his brother have been working with the board for more than a year to find his successor.

Paul Marciano will replace Maurice Marciano as executive chairman and continue serving as chief creative officer. Maurice Marciano will remain a director and has been named chairman emeritus.

Guess recently reported its first-quarter revenue declined by 8.4%, as the company faced headwinds with a strong dollar. The Los Angeles-based company swung to a first-quarter profit of $3.3 million.

For the year ending in January 2016, Guess said it expects per-share earnings between 86 cents and $1.02 a share.

Shares of Guess, down 23% over the past 12 months, added 0.2% in after-hours trading Tuesday.

Write to Cassandra Jaramillo at [e-mail]

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