Gap Profit Crisis, How To Save The Situation?

In recent years, many brands have not improved their profits, and the US clothing brand GAP is also the case.

On the gap side, net profit is expected to be between $1.87 per share and $1.92 per share this year.

The company forecast a net profit of $1.92 per share.

This means that the first half of this year is real.

It is not as good as expected.

Analysts had previously predicted that Gap could reach a net profit of $1.96 a share this year. From the current situation, Gap itself has no confidence in this goal.

Gap brand is seeking to reduce the discount rate and sell more original price clothing.

But in today's competitive fashion market, this situation is hard to achieve.

No matter how the price is,

The percentage of the discount itself is attractive, so no discount can affect the sales volume of the brand.

Gap's competitors have recently shown a very positive sense of competition.

H&M, Forever 21, Inditex's Zara and other brands have taken advantage of discounts and new trend products to seize market share in the recent clothing market, which has given Gap a lot of pressure.

At present, besides the brand named by the company itself, Gap also has two chain stores, the low-grade Old Navy brand and the relatively high-end Banana Republic brand, which need to be taken care of.

The company's net profit fell to $125 million in the second quarter.

It is equivalent to 0.31 US dollars per share.

A year ago, Gap's net profit was $219 million, equivalent to $0.52 per share.

On the whole, although the company is still profitable, and its influence in the clothing market is still there, the company's performance has begun.

The influence of fierce competition.

The company's share price rose 1.65% after Thursday's turmoil, to $25.88 / share.

After falling at the beginning of this year and at a low of 17.09 in May, the company's share price began to pick up in the summer.