Gap Reports Drop in November Sales
04 December 2015 - 9:58AM
Dow Jones News
By Josh Beckerman
Gap Inc. said sales at its established stores fell 8% in
November, worse than analysts expected, with declines at all three
of its major brands.
Shares of Gap, down 36% over the past year, dropped 2.4% to
$25.49 in after-hours trading. Analysts, on average, expected
same-store sales to fall 6.3%.
Gap's total sales for the four weeks ended Nov. 28 declined 9%
to $1.57 billion from a year ago. On a constant-currency basis,
sales tumbled 8%, the company said.
The company said same-store sales in November fell 4% at its
namesake chain, 19% at Banana Republic and 9% at Old Navy.
Same-store sales, which Gap defines as stores open for at least
a year along with online sales, are a key metric for retailers,
stripping out the impact of recently opened or closed stores.
Analysts, on average, expected same-store sales to fall 4.6% at
the namesake chain, 10.9% at Banana Republic and 7.2% at Old
Navy.
Gap has been trying to revamp its namesake brand. The company
brought on new leadership, including former Banana Republic veteran
Wendi Goldman, who had led the Pink line at Victoria's Secret. In
June, the company launched cost-cutting moves including the
elimination of 250 corporate jobs and closing 175 North America Gap
stores.
Last month, Gap lowered its full-year earnings guidance.
Write to Josh Beckerman at josh.beckerman@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
December 03, 2015 17:43 ET (22:43 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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