Gap Same-Store Sales Likely to Fall in Third Quarter, CEO Warns
Gap's (GPS) same-store sales will likely fall in its fiscal third quarter, which ends this month, CEO Glenn Murphy warned at an investor meeting in New York on Thursday.
The clothing retailer had been aiming for sale-store sales to remain flat or increase by up to 5%, but so far, comparable-store sales "are not in that bend," TheStreet quoted Murphy as saying.
Last quarter, the clothing retailer appeared to be turning its financial fortunes around from recent years. Gap's same-store sales grew 1% in its second quarter, which ended in July, compared with a drop of 8% in the same quarter last year. Its profit rose 3% while its revenue grew 2%, the company said in August.
Murphy's projection comes during a challenging time for Gap. Earlier this week, the company said it was reinstating its old logo just one week after unveiling a widely panned new logo. Gap, which has used the old logo for two decades, compounded the problem by soliciting suggestions from the public for new logo ideas without saying whether the company would pay for the design work.
But Gap shares were little changed by the latest news, growing less than 0.37% to close at $19.06 Wednesday.