×
1 390
Fashion Jobs
L'OREAL GROUP
l'Oreal Luxe Multibrand Retail Account Manager
Permanent · London
COTY
National Account Manager
Permanent · London
TK MAXX
Loss Prevention Officer-tk Maxx High Street Kensington-Full Time
Permanent · London
COTY
Trade Marketing Manager
Permanent · London
CLAUDIE PIERLOT UK
Stock Contoller - Permanent - Selfirdges London
Permanent · LONDON
COTY
Senior PR & Influencer Marketing Manager
Permanent · London
COTY
Brand Manager
Permanent · London
TK MAXX
Loss Prevention Officer - Wembley - Full Time
Permanent · London
VF INTERNATIONAL
Warehouse Area Manager
Permanent · COALVILLE
VF INTERNATIONAL
Warehouse Team Manager
Permanent · COALVILLE
VF INTERNATIONAL
Warehouse Team Leader
Permanent · COALVILLE
OUTSIDE THE BOX RECRUITMENT
Head of Atelier & Product Development – Couture – Canary Wharf
Permanent · LONDON
COTY
Account Manager - Fragrance
Permanent · Chester
DR. MARTENS
Finance Analyst - Hybrid Working
Permanent · LONDON
DR. MARTENS
UK/eu HR Operations Manager
Permanent · LONDON
DR. MARTENS
UK/eu Payroll Manager
Permanent · LONDON
AESOP
Replenishment Analyst
Permanent · London
ALL SAINTS
Buying Admin Assistant
Permanent · London
TK MAXX
tk Maxx - Loss Prevention Officer - Full Time - Kingston
Permanent · Kingston upon Thames
TK MAXX
Full Time / Permanent Loss Prevention Officer Boucher Road
Permanent · Belfast
TJX EUROPE
Merchandising And Buying Graduate Programme (2023)
Permanent · Grand Londres
AESOP
Retail Consultants | Aesop Canary Wharf, London (New Store Opening) | Part Time And Full Time
Permanent · London
By
Reuters API
Published
May 25, 2018
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Gap stumbles as namesake brand's struggles continue

By
Reuters API
Published
May 25, 2018

Apparel retailer Gap Inc reported quarterly same-store sales on Thursday that missed analysts’ estimates as its namesake brand struggled to clear excess inventory in a quarter marred by an unusually long winter.


Gap missed same-store sales estimates in Q1 - Instagram: @gap


Shares of the company, which also owns Old Navy and Banana Republic, fell 8 percent in extended trading after the company’s first-quarter profit fell well below expectations.

The results signaled that the company is still some way away from reviving the Gap brand, which has struggled to keep pace with fast-fashion rivals such as H&M and Forever 21 and tackle the dominance of Amazon.com.

Though Chief Executive Officer Art Peck has pushed hard to bring styles to stores faster like fast-fashion chains, the company has failed to capture the imagination of shoppers like it had done a decade ago.

Peck fired GAP brand President Jeff Kirwan earlier this year for poor operating performance and is yet to find a permanent replacement.

“The quarter did present some challenges. Some are largely expected like the Gap brand operating issues, and others were less predictable, like the unseasonably cold and snowy weather,” Chief Financial Officer Teri List-Stoll said

Sales at Gap branded stores open for at least a year sunk 4 percent, widely missing analysts expectations of a 0.4 percent drop, according to Thomson Reuters I/B/E/S.

Even its strong performing Old Navy business posted a lower-than-expected 3 percent rise in same-store sales, missing estimates for the first time in four quarters.

Inventories in the quarter rose 3.7 percent from a year earlier, mainly due to Gap merchandise stuck on shelves and in warehouses.

“(Gap) inventory is not perfect. But we took a significant one-time correction to get it done and get it behind us,” Peck said on a post-earnings call.

Gross margins dropped 120 basis points, excluding new accounting rules, in the quarter. The company, however, expects pressure on margins to ease in the current quarter.

Overall same-store sales rose 1 percent in the three months ended May 5, while analysts were expecting a 1.67 percent increase.

Net income rose to $164 million, or 42 cents per share, in the reported quarter from $143 million, or 36 cents per share, a year earlier.

Excluding items, earnings were 42 cents per share, 4 cents below Wall Street estimates.

Total revenue rose to $3.78 billion and beat the average estimate of $3.61 billion, due to strength in its Banana Republic brand.

© Thomson Reuters 2023 All rights reserved.