Gap Group Profits Fell 30% In The Third Quarter

The third quarter was a challenge for Gap group, Gap global sales fell 4%, and Gap group's third quarter profit dropped 30%.

Fast fashion Gap group In the third quarter of October 31st, net profit dropped to 248 million US dollars, or 29.3%, in the first three months of last year, from 351 million US dollars in the same period last year. Net sales fell to 2.9% from 3 billion 970 million US dollars in the same period last year to 3 billion 860 million US dollars.

GAP CEO Art Peck said: "the third quarter is a challenge for us. The focus of our whole channel is on holiday promotion to save our performance." On the basis of comparable store turnover, Gap's global turnover fell by 4%; Banana Republic's global turnover fell by 12%; and Old Navy's global turnover increased by 4%.

At the beginning of November, there was an industry analysis. Fashion retailer It has gone through a difficult period. Fitch international Rating firm Fitch Ratings recently cited a series of changes in the company as a "common concern about current and future business trends." The Gap credit rating dropped to "BBB-minus", leaving Gap group at a critical juncture, at a non investment level or junk bond status. If the company's debt is downgraded, the company will become more expensive to fund.

Gap group has constantly changed top management, including Old Navy global president Stefan Larsson has left the company and transferred to Ralph Lauren group as chief executive officer; Banana Republic creative director Marissa Webb has removed the position of creative director.

The rating agency said: "the company does not expect any brand of Gap to have positive sales growth. If Gap Brand store Without improvement at the same time, the initial weakness of Old Navy will have negative tax depreciation and profit before amortization. In addition, the departure of Banana Republic creative director indicates that the weak trend of the business will continue at least in the next six to nine months, and the product line under her guidance does not resonate with customers. "