Gap Group Worsened In November

Gap Inc. (NYSE:GPS) Cape group's recession intensified in November, and its Banana Republic 10%+ continued to decline in the same store sales of 10%+, even the last straw, which has always supported the biggest performance of the group.

Old Navy, the Old Navy's same store sales also plummeted, resulting in almost all sales data in that month.

Expect.

 

Gap Inc. (NYSE:GPS) fell 3.1% to 25.3 dollars after the stock market, expanding the total decline in 2015 to 40%.

Market forecast Gap Inc. Cape group in November of November 28th, the Gap Gabu, Banana Republic Banana Republic and Old Navy Old Navy will record 4.6%, 10.9% and 7.2% of the same store sales decline, however, the group data show that the actual decline of 4%, 19% and 9% respectively, only Gap cap Pu brand slightly better than the market expectations, while the Old Navy Old Navy is stronger than the same period last year 18% strong growth and the end of October three strong quarter growth, a substantial regression, the loss of merit president after the impact of Stefan Stefan began to emerge.

The group's same store sales fell by 8% year-on-year, far exceeding 6.3% of market expectations.

Sales totaled $1 billion 570 million, down 9% from $1 billion 720 million a year ago, and the fixed exchange rate decreased by 8%.

Sabrina Simmons Simmons, chief financial officer of Gap Inc., did not comment on the sales data in the monthly report, saying only that the group would continue to focus on strong execution and provide excellent experiences for customers of all brands during the remaining holiday season.

The group lowered its annual profit forecast last month in the three quarter earnings report. It is now estimated that the adjusted annual earnings per diluted share after the layoffs and restructuring expenses 1.3-1.4 billion dollars are 2.38-2.42 dollars, much lower than the expected 2.75-2.80 dollars, and Wall Street analysts expect $2.49.

Apart from the problem of Gap Inc., the American problem is broader.

The retail industry has been losing momentum in November or even in recent years.

Reuters's same store sales index showed a 0.4% year-on-year decline in November, compared with 5.3% in the same period last year.

The report released this week by the Department of labor statistics of the US Department of Commerce pointed out that consumer spending on clothing and footwear has increased by only 1.8% over the past 2013-2014 years, far behind the average growth rate of 5% in pportation, automobiles and other durable goods, housing, food, medical insurance and insurance.