The Gap stores also produced negative comps, down 4% on top of a 5% prior year decline. The company’s stock had a trading volume of 7,745,998 shares.
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While Gap’s global sales were a negative 4 per cent against -5 per cent last year, Banana Republic’s global sales were a negative 12 per cent against flat sales figure last year while Old Navy’s global sales rose 4 per cent against a one per cent rise last year.
Investors were wide-eyed at seeing the latest earnings from retailer Gap Inc. Following the transaction, the director now directly owns 11,043,125 shares in the company, valued at approximately $364,423,125.
Gap cut its 2015 adjusted profit forecast to US$2.38-US$2.42 per share from US$2.75-US$2.80. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website.
Net sales of $3.86 billion were 3% lower year-on-year, and matched analysts’ forecast. Shareholders of record on Wednesday, January 6th will be given a $0.23 dividend. They set a neutral rating and a $30.00 target price on the stock. However, analysts were expecting earnings of $0.63 per share on revenue of $3.92 billion. The ex-dividend date of this dividend is Monday, January 4th. It also said it still expects charges tied to the overhaul of Gap to reach $130 million to $140 million for the year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Hall Kathryn A. holds 67.06% of its portfolio in Gap Inc for 3.39 million shares. Bernstein maintained it with “Market Perform” rating and $28 target price in a November 17 report. The transaction was executed at $32.99 per share with total amount equaling $162,624,337. The disclosure for this purchase can be found here.
It is a winter of discontent for American multinational clothing and accessories retailer Gap. Along with managing in the forte, factory outlet, online and franchise channels, Gap Inc.is an apparel retailer in using omni-station capabilities for digital world and real shops. Gap comprises GapKids, babyGap, GapMaternity, GapBody and GapFit assortments. It has Company-operated shops in the United States, Canada, the United Kingdom, France, Ireland, Japan, Italy, China and Hong Kong.
While Stifel analyst Richard Jaffe noted: “We are convinced that Gap can manage through a challenging Q4, with Old Navy carrying the underperforming Gap and Banana divisions”.
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Gap shares have decreased 40 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 1 percent.
