Gap’s Disastrous Losing Streak Drags On

by MR Magazine Staff

Gap Inc’s shares tumbled 9% on Thursday after hours as the struggling clothier reported comparable sales declines for March at its three biggest brands, casting doubt on Wall Street it will shake its long-lasting doldrums. At its namesake chain, comparable sales fell 3%, while at Banana Republic, still reeling from the effects of being too fashion forward, it was another bloodbath, with a 14% drop. Even the once mighty Old Navy, which generates 40% of company revenue, can’t find its footing: its comparable sales were down 6%. Company-wide, the decline was 6%, the 12th monthly decrease in a row. Total sales came in at $1.43 billion. The dismal performance comes just as spring begins, a period Gap Inc CEO Art Peck told worried investors last June would be when the changes in merchandise and in organizational structure would kick in and put the largest specialty apparel retailer back on track. Indeed, Peck had called the spring of 2016 Gap Inc’s “no excuses moment.” Read more at Fortune.