Categories AlphaGraphs, Earnings, Retail

Old Navy keeps Gap Inc. afloat

Gap Inc. reported an 8% increase in total sales for its fourth quarter of 2017 while its same-store sales beat market expectations. The solid results sent the stock soaring after the earnings report.

The Old Navy brand continues to be a strong spot for the company, where comparable store sales grew 9% during the quarter.

Gap believes its Old Navy and Athleta brands have good potential for growth going forward with sales likely to exceed $10 billion and $1 billion respectively. The company plans to open more stores to focus on these two brands going forward.

As you may recall, Old Navy had last month fired three of its employees for racially profiling a customer. The company said it took swift measures to ensure the brand’s reputation was not dented.

The Gap and Banana Republic brands, which had been seeing softness, saw some recovery this quarter. Comparable store sales at the Gap brand remained flat while Banana Republic posted a slight pickup. However, parent company Gap Inc. will go forward with its plan to close Gap and Banana Republic brand stores this year.

In February, Jeff Kirwan, CEO of the Gap brand, had stepped down from his role after failing to revive the ailing brand.

The retailer has been struggling to keep up with fashion chains such as H&M, Zara and Forever 21 as online shopping trends.  

Most Popular

Intensity Therapeutics is establishing a new field of localized cancer reduction: CEO

Intensity Therapeutics, Inc. (NASDAQ: INTS) is a clinical biotechnology company engaged in the discovery development, and commercialization of first-in-class cancer drugs that attenuate tumors with minimal side effects while training

INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues

Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came

Riding the AI wave, Nvidia looks set to stay on the high-growth path

After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top