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

Tyson Foods (TSN) Q1 2023 Earnings: Key financials and quarterly highlights

Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per

After weak start to 2023, Apple (AAPL) sees some bright spots

Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the

Earnings: Qualcomm (QCOM) Q1 profit falls on lower revenues

Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5

Tags

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