Gap issues lacklustre outlook

GapGap Inc is issuing a second quarter earnings forecast that’s below Wall Street analysts’ estimates.

The company blamed West Coast port delays, foreign currency fluctuations and strategic manoeuvres the San Francisco-based company is taking to turn around its namesake brand.

The earnings outlook, announced late on Monday, comes as the retailer, which also operates Old Navy and Banana Republic, posted a three per cent drop for a key revenue measure for July.

Analysts expected a 2.3 per cent drop.

The company, under its new CEO Art Peck, is aiming to turn around the business and announced in June that it was scaling back its Gap store footprint in North America.

It plans to close 175 Gap stores in North America over the next few years, leaving about 800 open.

AP

Comments

Comment Manually

Inside Retail Polls

How much do you think the broader Australian economy affects retail?
Vote

Twitter

Tap-and-go payments would be much cheaper for businesses if the big banks just made one change. The ARA and other i… https://t.co/1M9H1Jbw75

3 mins ago

Ex-DJs marketer Kate Whitney named new CMO and chief growth officer of Marley Spoon Australia. #retail #ausbiz

22 hours ago

One-off events deliver a bigger first-half profit for Beacon Lighting in FY20, but the specialty retailer warns tra… https://t.co/FV63K2lnqU

1 day ago