Guess Three Year Aggressive Expansion Plan Brings Investor Panic

The heat of tannins in these one or two quarters should continue to decrease, while the demand for high-end jeans market will continue to expand.

Recently, however, Guess, a cowboy retailer in the US, has fallen a great deal.

This is what happened. In the last fiscal year, Guess's annual performance not only met the expectations of the enterprises, but also met market expectations. In the 2015 fiscal year ended January 30, 2016,

The total revenue was 2 billion 204 million 300 thousand US dollars, which was 2 billion 210 million US dollars in the market expectation. Although compared with the US $2 billion 417 million 700 thousand in the last fiscal year, there was a 8.8% decrease. However, due to the expected reduction and income after adjustment, it was in line with market expectations. Although the income of Guess decreased by 5.5% to 658 million 300 thousand US dollars in the four quarter holiday season, while the same store sales increased by 2% on the basis of the exchange rate effect. In the comments of group CEO, the fourth quarter was considered "encouraging", and he pointed out that the recovery plan carried out by the group in the past few months has achieved initial success.

But interestingly enough, in the subsequent earnings call conference, CEO

The medium-term strategic plan was released - 11% annual composite.

The annual income will be increased to 3 billion US dollars in three years.

In terms of the speed of expansion, Victor Herrero will represent 60, 140 and 200 new stores in the Americas, Europe and Asia, respectively.

The retail network will increase by 50%, and 1200 stores will be implemented in three years.

More interestingly, Victor Herrero said that in the first half of this year, although the group would experience pain, it is believed that the goal will be achieved in three years' time.

By this surging CEO news, the group's early share price fell 15.07%.

But CEO, who was a hot blooded one, took the place of the founder of the brand in August 2015 and became a CEO.

Compared with the fast fashion giant Zara parent Inditex group, which has been expanding in Asia, the CEO's behavior is somewhat puzzling.