Fashion retailer Guess will close around 100  stores over the next 18 months in North America and China, Sourcing Journal reports. That’s reportedly driven by leases coming due, allowing some flexibility for the firm, though the CEO Carlos Alberini has stated that the firm is “still having some challenges with customer traffic” in the wake of COVID-19 related store closures.

That’s been a wider trend for the apparel retail industry, as flagged in Panjiva’s research of June 17, with a build-up of unwanted inventory being one result of not being able to cut sourcing as quickly as the downturn in sales.

Panjiva’s data shows that U.S. seaborne imports linked to Guess have dropped by 72.0% year over year in April and May combined after dropping by 30.5% in Q1. Among the less seasonal product lines, the fastest drop has been seen in men’s ensembles with imports that dropped by 92.4% in the past two months while women’s ensembles fell by 79.5% and t-shirts fell by 61.5%.

Chart segments U.S. seaborne imports linked to Guess by product (HS-4). Source: Panjiva

The firm has also had to navigate a restructuring of its supply chain in part due to the imposition of tariffs on some imports from China. Shipments from mainland China increased to reach 41.7% of the total in 2019 from 32.4% in 2017, while imports from Hong Kong fell to 19.3% from 29.1% as a result of increased shipments from India and others.

Both the China and Hong Kong elements may need to be addressed further given the Trump administration’s commitment, flagged in Panjiva’s June 4 report, to withdraw Hong Kong’s special status. 

A drop in imports from mainland China and Hong Kong combined to 34.0% of the total in the past six months likely reflects COVID-19 related supply chain disruptions rather than a sustained restructuring.

Chart segments U.S. seaborne imports linked to Guess by origin on a monthly and three-month average basis. Source: Panjiva