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Gloucestershire Business News

Gap sales fall sees shares plummet

An unexpected fall in sales at fashion brand, Gap, has sent shares in the company diving.

In the 13 weeks to 4th August, the US company, which has stores in Gloucester Quays and Cheltenham, saw sales rise in some of its subsidiary bands, including Old Navy, Athleta and Banana Republic, none of which have stores in the UK.

Sales across the group as a whole rose two per cent, ahead of analysts' expectations of 1.5 per cent, while profits rose 10 per cent, as reported by Retail Gazette.

But despite net sales jumping eight per cent across the group, share prices dropped nearly seven per cent.

The company reported a net income of $297 million (£231 million), up from $271 million (£210 million) the previous year.

Sales of the Old Navy brand rose five per cent over the quarter, with overall revenues jumping 13 per cent to $2 billion (£1.55 billion). Banana Republic, which closed all its UK stores in 2016, saw comparable sales jump two per cent.

But Gap itself offset this group, with a five per cent drop in sales, well above the 2.5 per cent drop expected.

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