Gap’s comparable sales miss as its namesake brand struggles 


“Based on current projections, we would expect Gap brand to show sequential progress but still be down for the year,” Chief Financial Officer Teri List-Stoll said on a post-earnings call.

Chief Executive Officer Art Peck has also shut Gap brand stores and named a new head for the unit earlier this year in a bid to shore up sales.

Peck on the call said “early reads of fourth-quarter product flows are encouraging.”

“The problem is that the turnaround is taking a long time and it still is a significant misstep on their part,” said Gabriella Santaniello, founder of retail consultancy A line Partners.

Old Navy, Gap’s more affordable brand and a bright spot, also missed comparable sales estimates by a small margin.

Sales rose 4 percent, while analysts had expected a 4.65 percent increase. The brand has topped estimates in six of the past eight quarters.

Business casual clothing brand Banana Republic topped analysts’ estimates for same-store sales, posting a 2 percent rise compared with average estimate of 0.72 percent gain.

Overall company same-store sales were flat in the three months ended Nov. 3, missing analysts’ average estimate of a 1.09 percent rise.

Excluding items, Gap earned 69 cents per share, beating the average estimate by a cent.

Net sales rose 6.5 percent to $4.09 billion, slightly above the average estimate of $4 billion.

The company cut the top end of its full-year profit forecast to $2.60 per share from $2.70, retaining the lower end at $2.55.

Shares of the San Francisco-based company, which declined 3 percent in regular trading, dropped as much as 2 percent after the bell. They have fallen 27 percent so far this year.

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