Why Gap Isn't Resonating With Millennials

Video Credit: The Street - Duration: 01:43s - Published
Why Gap Isn't Resonating With Millennials

Why Gap Isn't Resonating With Millennials

Gap announced after the bell Thursday that CEO Art Peck would be stepping down and it slashed its full-year earnings forecast, putting its recent restructuring plans at risk.

Peck, who has led the group since 2015, had steered plans to close more than half of its Gap-branded stores and spin-off its Old Navy division into a standalone business by 2020.

He will be replaced by board chairman Robert Fisher, a member of the retailer's founding family.

Separately, however, the Gap said it sees full-year earnings in the region of $1.70 to $1.75 per share, sharply lower than its prior forecast of $2.05 to $2.15 per share, and forecast a third-quarter sale slump of around 4% across all of its retail brands, including Old Navy.

"This was a challenging quarter, as macro impacts and slower traffic further pressured results that have been hampered by-product and operating challenges across key brands," said CFO Teri List-Stoll.

"We have tremendous confidence in our brands and the talented organization that supports them, and we are seeing progress in some key areas.

However, there is more work to do to leverage the capabilities we have invested in and deliver the profitable growth we know these brands are capable of delivering." Action Alerts PLUS senior portfolio analyst Jeff Marks noted that he doesn't believe that millennials don't resonate with Gap as much as they did before.

Watch the full video above for more.

Bull Market Fantasy: LIVE TUESDAY & THURSDAY @10:45AM Subscribe to our Youtube Channel for more videos : Listen our latest Podcasts on Soundcloud Catch Up: Today's Top News Videos Below

You Might Like

Related news from verified sources

Hey Millennials, look out below! Gen Zers may already be catching up in the salary race

Gen Zers are closing the pay gap with millennials even though they have far less experience. They're... - Published

Bad news for Millennials when it comes to pay

New data indicate Gen Z is gaining on or even surpassing Millennial workers when it comes to pay.  A...
bizjournals - Published

Tweets about this

Related videos from verified sources

Millennials Are Making Less Money Than Baby Boomers Did at Their Age [Video]

Millennials Are Making Less Money Than Baby Boomers Did at Their Age

Millennials Are Making Less Money Than Baby Boomers At Their Age. A new report says the age group is earning 20 percent less than the generation before them. The analysis was written by think tank..

Credit: Wibbitz Top Stories     Duration: 01:25Published