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