Gap Inc. Struggles Through Last Quarter
All three core brands showed declines last quarter.
It was more of the same at Gap Inc. last quarter.
All three core brands — Old Navy, Gap and Banana Republic — dragged through the period, as the $16 billion corporation saw its net income fall to $140 million in the period ended Nov. 2, compared to $266 million a year ago.
Comparable sales overall were down 4 percent, with Old Navy Global down 4 percent, Gap Global down 7 percent and Banana Republic Global down 3 percent.
Net sales were $4 billion, a decrease of 2 percent compared with last year.
“We are not pleased with the third-quarter results and are focused on aggressively addressing the operational issues that are hindering the performance of our brands,” said Robert J. Fisher, Gap Inc.’s interim president and chief executive officer. “We continue to make progress against our separation plans, which will provide improved focus and a further catalyst for transformation.” Those plans call for a public spin-off of Old Navy next year.
Gap Inc. is searching for a new ceo, the position held by Art Peck until Nov. 7. Fisher, the son of the late founder of Gap, Donald Fisher, has stepped into the role for now.
The company affirmed its reported diluted earnings per share guidance for fiscal-year 2019 to be in the range of $1.38 to $1.47 and its adjusted diluted earnings per share guidance range of $1.70 to $1.75.
The company now expects comparable sales for fiscal year 2019 to be down midsingle digits.