In an unexpected move, Guess is said to have reacquired some of its stake in its previous Russian business from local partner Vyacheslav Skikulov.
Guess operates 44 stores in the country and previously served as a distributor for its business.
According to Russian news outlet Kommersant, the company bought back a 30% stake in the business for €8 million after consolidating 100% of its business in the country.
The deal follows a 2015 agreement between Guess and Shikulov, which gave the businessman the right to sell his stake in the partnership and required Gap to buy him out before the end of 2025.
That said, Guess’s decision to buy back its stake might have been a bitter pill to swallow as most major retail brands in the U.S. have divested their operations in Russia, often at substantial financial costs. For example, H&M took a loss of $363 million, while Decathlon took a $140 million loss.
U.S. companies are also presently not allowed to grow business or investments in Russia due to sanctions, which further complicates smoothly conducting business in the country.
Last year, Guess’ revenue in the country was set to reach o four billion rubles, growing by a stunning 24%.
Photo credit: Guess