Why Guess?, Inc. Stock Plummeted Today

What happened

Shares of Guess? Inc. (NYSE: GES) fell 17.8% on Thursday after the clothing retailer's co-founder was accused of sexual misconduct. Late Wednesday, supermodel Kate Upton took to social media to express her disappointment that Guess is "empowering" company co-founder Paul Marciano as its chief creative director.

"He shouldn't be allowed to use his power in the industry to sexually and emotionally harass women," Upton elaborated, using the #MeToo hashtag that has come to signify the recent movement to highlight the prevalence of sexual assault and harassment.

So what

Marciano, for his part, promptly denied the accusation, telling TMZ that he was "shocked," and claiming "he's never touched Upton, and has never even been alone with her."

"If she has a claim," he added, "there's one place to tell the truth and that's in court or to the police."

Marciano further suggested that Upton -- who was formerly the face of the Guess? brand -- may be motivated by the company's decision to cut ties with her after she began showing up to sets "looking terrible" following late nights.

Now what

Of course, that unflattering bit of speculation hardly does the Guess? brand any favors, and it seems safe to bet that Upton will provide details to back up her assertion in the near future. With that in mind, it's hardly surprising to see investors taking a step back from the company as they wait to see how the situation unfolds.

10 stocks we like better than Guess?When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Guess? wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of January 2, 2018

Steve Symington has no position in any of the stocks mentioned. The Motley Fool recommends Guess?. The Motley Fool has a disclosure policy.