×
77 056
Fashion Jobs
OLD NAVY
General Manager - Liberty Center
Permanent · Liberty Township
NIKE
Manager, Vendor Management Office – Global Tech
Permanent · Beaverton
NIKE
Marketplace Operations Business Analyst
Permanent · Beaverton
NIKE
Senior Product Line Manager - Men’s Classics Footwear
Permanent · Beaverton
JCPENNEY
Asset Protection Security Specialist
Permanent · Plano
JCPENNEY
Asset Protection Specialist
Permanent · Plano
LULULEMON
Keyleader/Store Business Lead | Sawgrass Mills Outlet
Permanent · Sunrise
TAPESTRY
Area Manager
Permanent · Columbus
TAPESTRY
Manager, Human Resources
Permanent · New York
MICHAEL KORS STORES CALIFORNIA INC
Operations Manager
Permanent · Ontario
ESTÉE LAUDER
Senior Lead, Business Analyst, R&D Innovation & Planning
Permanent · New York
ESTÉE LAUDER
Director, Global Digital Creative Design
Permanent · New York
ABERCROMBIE AND FITCH CO.
sr. Procurement Analyst, Supply Chain
Permanent · Columbus
CENTRIC BRANDS
Account Executive - Ecommerce
Permanent · New York
ADIDAS
Manager, Gbs Payroll
Permanent · Portland
ADIDAS
sr. Manager, Gbs Payroll
Permanent · Portland
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Tulsa
KOHLS
Senior Business Operations Analyst - HR
Permanent · Menomonee Falls
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Fargo
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Hodgkins
KOHLS
Full-Time Sales Supervisor - Hardlines
Permanent · Cartersville
KOHLS
Full-Time Sales Supervisor - Softlines
Permanent · Wheaton
By
Reuters
Published
Oct 7, 2016
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Shares of Gap on track for biggest gain since 2008

By
Reuters
Published
Oct 7, 2016

Shares of Gap Inc had their biggest jump in eight years on Friday and many of its rivals also rose after the apparel retailer posted September sales that were not as bad as expected and kindled hopes of a potential recovery in the sector.


Gap.com



Gap's report provided respite to shares of mall retailers that have been crippled in recent years by low-price fast-fashion competitors, a trend where consumers are spending their extra income on apparel, and the growing dominance of Amazon.com.

Gap was up 14.9 percent at $26.16, on track for its largest one-day increase since November 2008. Abercrombie & Fitch, Bebe Stores, Ralph Lauren and Chico's FAS all gained 2 percent or more on Friday after Gap's report late the day before.

Gap said comparable sales in September fell 3 percent compared to a 1 percent drop in September last year. It blamed the drop on disruptions caused by a fire at a distribution center that it reported at the end of August. Analysts on average had expected a 2.9 percent dip, according to Thomson Reuters data.

Some analysts focused on a 4 percent increase in comparable sales at Gap's Old Navy segment, even as comparable sales at its Banana Republic unit fell 9 percent and Gap Global declined 10 percent.

"We see a potential scenario of the segment producing high single digit comps this winter, aiding the company will turn the corner on leveraging rent and occupancy," wrote Deutsche analyst Paul Trussell, who upgraded his rating on GAP to "hold" from "sell".

Six analysts recommend selling Gap, while 23 have "hold" ratings and just three recommend buying, according to Thomson Reuters data.

Gap's rally on Friday left its stock up 5 percent in 2016 but still down 10 percent over the past 12 months. The S&P 500 has gained 7 percent over the past year.

Stifel analyst Richard Jaffe even saw a silver lining in the fire at the Fishkill, New York facility, its primary distribution center for the U.S. Northeast.

"Given poor results at Gap and Banana Republic, likely attributable to unappealing merchandise assortments, we don't view the product lost in the fire as an important loss but rather a fortuitous reduction in inventory," wrote Jaffe in client note.

 

© Thomson Reuters 2022 All rights reserved.