Gap Cape Group'S Fourth Quarter Profit Plunge Is The Key To Save The Situation.

On Thursday, Gap Inc. (NYSE:GPS), the Cape group, released a complete performance in the fourth quarter. As of the 2015 quarter of fiscal year January 30, 2016, the group's adjusted earnings per share recorded a record $0.57, which was in line with the expectations issued by the group's previous initial results, and also basically met Capital IQ Consensus, S & P $0.57.

Within the period, the group's revenue dropped to 6.9% euros, or less than 4 billion 385 million euros, which was lower than Capital IQ Consensus's S & P's expected $4 billion 470 million. In 2014, Q4's revenue was $4 billion 708 million.

In addition to poor earnings expectations, Gap Inc.

The group's current 2016 fiscal year 2.20 dollar -2.25 US dollar EPS is also far lower than the Capital IQ Consensus's S & P's expected $2.42, although the group announces a new 1 billion dollar stock repurchase plan to replace the existing buy back plan, but the company's stock price still dropped more than 3.3% after the session.

By the end of the 2015 quarter of January 30, 2016, the net profit of Gap Inc. Cape group was 214 million US dollars, or about 0.53 US dollars per share, which was 33% lower than the US $319 million in the 2014 quarter of fiscal year.

Art Peck, a leading technology company, said in its earnings report that the group is still confident that it will provide consumers with more shopping experience through digital channels, especially mobile platforms, which connect consumers well.

The group took the lead in disclosing it in February 9th.

By the end of the 2015 fiscal year ended January 30, 2016, the sales of Gap Inc. Cape group fell by 7%, and the three major brands of Gap cover, Banana Republic, Banana Republic and Old Navy were down 3%, 14% and 8% respectively, and the whole line was weak, especially the continuous decline of the Old Navy Navy, which has been leading the group growth.

The shares of Gap Inc. (NYSE:GPS), the Cape group, closed at $27.60 on Thursday, a 1.17% gain. In January, the stock fell to a low level and hit a four year low. So far this year, the stock has rebounded 11%, compared with a decline of more than 33% in the past year.

By the end of the 2015 fiscal year, Gap Inc. covered 3721 stores in the world, of which 3275 were self operated. However, the plan of the fertilization plan affected 73 stores in the fourth quarter of the group, mainly for the closure of the Gap Gap store in the North American market. The Group expects to open 40 new stores in the financial year, mainly in the Greater China market.