The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
SAN FRANCISCO, United States — Gap Inc. posted second-quarter earnings that narrowly topped analysts' estimates, giving hope that the largest apparel-focused U.S. retailer can mount a comeback.
Earnings were 60 cents a share in the quarter, excluding some items, the San Francisco-based company said in a statement Thursday. The company said earlier this month that profit would probably be 58 cent to 59 cents, with analysts pegging their average estimate to the higher figure. Sales were $3.85 billion in the period, matching the preliminary number.
The results suggest that a long-awaited turnaround from Chief Executive Officer Art Peck may finally be gaining traction. A pickup in apparel spending -- especially in Gap’s core denim category -- could help the company fight sluggish mall traffic and heavy discounting. Peck also is paring down the company to save money and refocus on better-performing stores.
“We took critical steps to execute our restructuring plans and to build a more efficient global brand model with greater potential for growth,” he said in the statement. “While I remain unsatisfied with the pace of improvement across the business, I am encouraged by the underlying signs of progress.”
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The shares fell less than 1 percent to $25.71 in late trading in New York. The stock had gained 4.8 percent this year through Thursday’s close.
By Lindsey Rupp; editors: Nick Turner and Kevin Orland.
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