Tuesday 26 September 2017

Retail analysts upbeat despite fall in shares of sales-hit Gap

Gap fashion
Gap fashion

Subrat Patnaik

Shares of clothes retailer Gap Inc fell more than 7pc in early trading yesterday, a day after the company reported a drop in sales for July, but analysts were largely positive about the company's prospects.

At least six brokerage raised price targets on Gap's stock, based on the company's upbeat second-quarter profit estimate. Retailers such as Gap are struggling to attract shoppers, who are increasingly prefer to shop online or at fast-fashion retailers such as H&M, Forever 21 and Inditex's Zara.

To fight back, Gap has been tightly controlling inventories, cutting back on promotions and replicating the success of its low-end Old Navy brand at its Gap and Banana Republic chains since Art Peck took over as chief executive last year. (Reuters)

Irish Independent

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