Gap Group Will Continue To Reform To Recover Lost Market Share.

According to the world clothing shoes and hat network understanding, the United States Fast fashion The apparel group Gap (NYSE:GPS) increased its net sales by 2% to $828 million in the first 4 weeks as of January 28th, up from $813 million in the same period last year, and 1% in the fourth quarter to $4 billion 430 million in the fourth quarter, compared with $4 billion 390 million in the same period last year.

Group CEO Art Peck said that in this challenging retail environment, the group is on holiday. Shopping During the peak season, good sales performance is recorded, and the group will continue to reform in order to gradually recover the lost market share.

In January, Gap group's same store sales rose 1%, while same store sales fell 8% last year. Press brand According to the division, sales of Old Navy rose 2% in the same store in January, while Banana Republic fell 4% in the same store, while Gap sales rose 3% in the same store. During the fourth quarter, Old Navy sales increased 5%, Gap sales remained flat, while Banana Republic sales fell 3%.

The group's annual earnings increase is expected to be $2.01 to $2.02 per share, 10 cents higher than the $1.92 expected last month, adjusted earnings exclude 41 cents per share and reduce costs.

On the basis of the unadjusted basis, the company expects diluted EPS to be in the range of US $1.68 to US $1.69. The company expects diluted earnings per share in the fourth quarter range from 54 cents to 55 cents.

In the first two months of December last year, Gap group's net sales increased by 1%, while same store sales increased by 2%. In the first 5 weeks of December 31st, Gap group's net sales increased by 3% to $2 billion 70 million and sales in the same store increased by 4%.

It is noteworthy that in the downturn of global performance, the Chinese market still has high hopes. The group CEO Art Peck visited China personally to visit business plans last week. In an interview with the media, she said that although China's economy has slowed down, consumers' shopping attitude has become cautious, but they are very optimistic about the long-term development opportunities of the Chinese market. At the end of last year, when the group entered China 5th anniversary, Abinta Malik, senior vice president and general manager of Gap Greater China, also said that China is the biggest growth opportunity.

However, analysts say that Chinese consumers do not seem to buy the Gap, and the Chinese market may not be able to help Gap, because Gap is too late to enter China, and vague market positioning is not enough to attract the attention of Chinese consumers. In the fast fashion camp, Zara, H&M and UNIQLO have long established their footing in China, and the latter three shops are far behind Gap. In the new season's summer series, Gap invited Lu Han, born in 1990, and Ouyang Nana, who was born in 2000, as an image endorsement. But it seems that it can not hit the hearts of young consumers. It can be seen from the sales data of the double ended 11. The best selling product of Gap is children's clothing, and the other products line is far behind that of UNIQLO and ZARA.

Gap stores in Shanghai can now often see promotional advertisements such as "special offer" and "thirty percent off discount". Discounts include not only a pile of seasonal clothing, but also a newly listed dress. This is a terrible vicious cycle. Gap brand promotion is like poison. Once addicted, it is difficult to quit. Although everyone knows that he wants to change, he must start with products, but for Gap, change is not easy.

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