Guess shares crater as actress accuses co-founder of sexual harassment

Key Points
  • Guess shares tumble after actress Kate Upton calls out co-founder Paul Marciano for allegedly sexually harassing women.
  • Upton has been a model for the brand for several years.
Guess drops as Kate Upton criticizes firm's co-founder

Apparel retailer Guess shares nose-dived Thursday, a day after actress Kate Upton called out co-founder Paul Marciano for allegedly using "his power in the industry to sexually and emotionally harass women."

By midafternoon Thursday, share prices were down 14 percent.

Upton took to her Twitter and Instagram accounts Wednesday evening to make the claims, citing the "metoo" movement.


Representatives from Guess and Upton didn't immediately respond to CNBC's requests for comment.

Actress Kate Upton
Jon Kopaloff | FilmMagic | Getty Images

Marciano told TMZ he was "shocked" by Upton's accusations and said he wouldn't apologize.

Marciano and his brothers, born in Monaco, founded Guess Jeans in the 1980s. Paul Marciano eventually became CEO in the 1990s, but he retired from that role in 2015 to serve as a chairman and chief creative officer.

Upton has modeled for the Guess brand since 2011. Her social media posts on Wednesday came the same night Guess was celebrating its new campaign launch with Jennifer Lopez in Los Angeles.