Guess Caught by Misconduct Allegations, Market Rout

Shares of Guess Inc. stabilized Friday after dropping sharply in the wake of model Kate Upton’s #metoo allegations against Paul Marciano — allegations the executive chairman and chief creative officer firmly denies.
After falling 17.7 percent on Thursday, Guess shares rose modestly in morning trading, before a broad selloff on Wall Street pulled the stock back down. Guess ended down 3.4 percent to $14.60 as the Dow Jones Industrial Average dropped 665.75 points, or 2.5 percent, to 25,520.96.
Investors appeared to be spooked by fears of higher inflation on the heels of wage growth — the Labor Department said the economy added 200,000 jobs last month, while hourly wages grew 2.9 percent compared with a year earlier. Among the other fashion stocks hit with even steeper declines were: Coty Inc., down 4.3 percent to $18.05; L Brands Inc., 3.7 percent to $47.51; Fossil Group Inc., 3.7 percent to $7.48; Urban Outfitters Inc., 3.1 percent to $32.63; Macy’s Inc., 2.9 percent to $24.89, and Nordstrom Inc., 2.8 percent to $47.85.
Inflation, however, would seem to be a much more distant concern for Guess, which is well known for its provocative advertising and still working its way through the allegations against Marciano.
Guess’ stock roller-coaster ride

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