economy
Gap shares tumble 14% as retailer cuts sales guidance after disappointing Old Navy performance
Gap issued mixed results as sales at its largest brand, Old Navy, fell short of estimates.
TL;DR
- Old Navy's comparable sales grew 1%, below the expected 3%, leading Gap to cut its companywide sales guidance.
- Gap raised its adjusted earnings per share outlook to between $2.30 and $2.40.
- Gap's namesake brand saw comparable sales soar 10%, significantly exceeding analyst expectations.
- Banana Republic experienced positive comparable sales growth for the fourth consecutive quarter, though below expectations.
- Athleta's sales continued to decline, with comparable sales down 11%.