Fashion World updates

Gap Inc. Posts Another Tough Quarter

Women's Wear Daily -

Gap Inc., suffering another poor quarter, nonetheless remains confident going forward with its plan to spin off Old Navy into a separate public company next year. On Thursday, the $16 billion Gap reported that earnings in the second quarter ended Aug. 3 practically halved, declining to $168 million from $297 million in the year-ago period, while comparable-store sales fell 4 percent, with Old Navy down 5 percent. The business was hurt by slowing traffic and product demand. But according to Art Peck, Gap Inc. president and chief executive officer, “Separation activities remain on track and we’re making excellent progress.” He also said during a conference call after the quarterly results were released that to get Old Navy back on track “no stone is being left unturned.” He acknowledged that softness in women’s became more broad-based. “She wanted more choice and more newness,” Peck said. “Obviously we’re not pleased with the performance, but we did come into the quarter knowing it would be challenging.” Peck said Old Navy is still facing some challenging traffic trends in Q3 but “leaning into denim, active and fleece, all of which had positive comps in Q2” and “digging exceedingly deep on marketing effectiveness,” including reassessing the mix of marketing through

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