Celebrating 10 Years of Trusted News Discovery
One News Page
> >

The Gap Offers Many Lessons on Retail Sector Sentiment

Video Credit: The Street - Duration: 00:58s - Published < > Embed
The Gap Offers Many Lessons on Retail Sector Sentiment

The Gap Offers Many Lessons on Retail Sector Sentiment

The Gap is falling fast on Friday after a first quarter report that missed the mark badly.

Shares of the San Francisco-based apparel retailer are set for their lowest open in about three years, marking a nearly 15% drop in pre-market hours after missing the report's release post-market on Thursday.

The pre-market move has left the stock firmly in the losers camp as the overall retail sector becomes increasingly bifurcated.

The print for the three months ending on May 4, the company's fiscal first quarter, came in at 24 cents per share, well shy of the Street consensus forecast of 32 cents while revenues fell 2% year over year and same-store sales slumped 4%, the steepest in three years.

"Obviously we're disappointed in our Q1 results," Arthur Peck told analysts on Thursday evening.

"Not unlike others in the industry, our results highlight some of the macro challenges we all faced." He said that a confluence of weather trends, holiday shifts, and tax changes as significant factors impacting performance that remained out of control of management.

"While traffic and sales trends improved as we moved through March and April, it was difficult to overcome the extremely slow business that we and others encountered in February," Peck commented.

"We also missed opportunities on our own, and we could have executed, as always, better across places in our brands." Peck worked to encourage optimism on the call, noting the company's efforts to deliver better results for the second half of the year as many macro trends potentially roll off.

"We recognize that the needs of our customers are changing, and we're not waiting around hoping that we muddle through.

We're running towards what we see as an exciting next step in our evolution," he said.

Still, Wall Street remains largely unconvinced.

"We remain on the on the sidelines for now, optimistically awaiting greater visibility, as evidenced in data across email receipts, credit card data, and mall traffic, culminating in a signal showing a spark in consumer spending," Wedbush analyst Jen Redding wrote in a note to clients on Friday.

"Shares of GPS currently trade at a 38% discount to the company's historical P/E multiple, which we see as fair for a shares of a retailer led by a management team who have been trying to turn the namesake brand around for the last 4 years with limited success thus far." To hear more analysis on the company's plan to spin-off Old Navy, its sensitivity to tariffs, and how both its results and its peer PVH Corp.'s plummet can coach retail sector investors in 2019, head over to Real Money for all-day coverage on the Stock of the Day.

Trending Videos on TheStreet


Recent related news from verified sources

Best Smart TV Prime Day Deals of 2019 Revealed by Sales Experts at Retail Fuse

*The top Prime Day 4K TV & Smart TV deals for 2019, rounded up by Prime Day sales researchers at...
GlobeNewswire - Published

Top Headphones Prime Day Deals (2019): Best AirPods, Bose QC35, Beats & Sony Noise Cancelling Headphones Deals Chosen by Retail Egg

*The Prime Day team at Retail Egg lists the best Beats by Dre wireless headphones, Bose noise...
GlobeNewswire - Published

DSS Releases Blockchain Tracking and Authentication Technology “Sentinel” to Combat Unauthorized Sellers, MAP Violators and Retail Arbitrage within Amazon Marketplace

ROCHESTER, N.Y., July 18, 2019 (GLOBE NEWSWIRE) -- Document Security Systems, Inc. (NYSE American:...
GlobeNewswire - Published

GSRX Industries posts record $3.5 million revenue for 2Q as it expands cannabis dispensaries

GSRX Industries Inc (OTCQB:GSRX) announced Tuesday that it posted record revenue of $3.5 million in...
Proactive Investors - Published

You Might Like

Recent related videos from verified sources

Simple Ways to Feel Great This Summer [Video]Simple Ways to Feel Great This Summer

You’ve probably seen First for Women at your local grocery store. In fact, it’s the second best-selling magazine at retail with 3.7 million active readers.First for Women offers its audience of..

Credit: Rant Sports     Duration: 04:48Published

Toys R Us To Open 2 New Stores During The Holidays [Video]Toys R Us To Open 2 New Stores During The Holidays

Toys R Us is making a comeback! Business Insider reports that Toys R Us stores will open in two high end malls, just in time for the 2019 holiday shopping rush. Tru Kids, a company created in February..

Credit: Wochit Business     Duration: 00:44Published

What Jim Cramer's Paying Attention to in JPMorgan Chase's Earnings Report [Video]What Jim Cramer's Paying Attention to in JPMorgan Chase's Earnings Report

Earnings season has officially kicked off. Tuesday morning saw earnings from banks such as Real Money stock of the day JPMorgan Chase and Goldman Sachs . JPMorgan reported that net income in the..

Credit: The Street     Duration: 01:17Published

Is Now 'Prime' Buying Season for Amazon Stock? [Video]Is Now 'Prime' Buying Season for Amazon Stock?

Amazon is Real Money's Stock of the Day. The internet giant's fifth annual Prime Day event began this morning at 12 am PST and will run for 48 hours this year, 12 hours longer than last year's 36..

Credit: The Street     Duration: 01:09Published

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2019 One News Page Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest
One News® is a registered trademark of One News Page Ltd.