Carlos Alberini is the new chief executive of Guess. He replaces Victor Herrero. In fact, Alberini returns to Guess. He was president and chief operating officer at Guess from 2000 to 2010. He was instrumental in building the international business in Europe and Asia during his ten-year tenure with Guess.
Herrero, who had worked for a decade at the Spanish company Inditex, parent company of Zara, came on board in 2015 to turn things around at Guess. He launched an aggressive campaign to hire influencers and celebrities such as Jennifer Lopez to publicize the product. He also started shuttering US stores as sales in Europe and Asia grew and US sales languished.
Herrero will receive a $2.4 million separation agreement, which is equivalent to two years’ of his monthly salary and his bonus for fiscal 2019. He will also have his life insurance and health insurance costs covered for a two-year period and receive full vesting of his equity awards. Once Alberini steps in, his annual salary will be 1.2 million dollars and he will receive a million dollar signing bonus.
During the third quarter of fiscal 2019 Guess experienced a 13.4 million dollar loss on 605.4 million dollars in revenues.
