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. shares rose as much as 6.7 percent in late trading after its September sales were a bit better than expected, boosted by a rebound at its Old Navy chain.
Same-store sales gained 4 percent at Old Navy last month, the San Francisco-based retailer said on Thursday. Analysts had projected growth of less than 1 percent, according to Retail Metrics. The figure fell 3 percent companywide in September, less than the 3.6 percent analysts estimated.
The stock climbed as high as $24.30 in late trading after the results were released. It had been down 7.8 percent this year through Thursday’s close.
Gap pointed to an improved product selection at Old Navy for helping drive growth at the brand — the company's lower-budget chain. Still, its other two major divisions remain in a slump. Same-store sales fell 10 percent at the Gap in September and 9 percent at Banana Republic.
ADVERTISEMENT
“While we remain focused on performance across the portfolio, we are pleased to see a strong customer response to Old Navy’s product assortment,” chief financial officer Sabrina Simmons said in the statement.
A fire at Gap’s distribution center in Fishkill, New York, also is disrupting sales. The blaze, which struck in August, hurt comparable sales by about 3 percent in September. And the company expects a similar impact in October. The fire forced Gap to reroute deliveries and boost staff at other facilities.
By Nick Turner; editor: Mark Schoifet.
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.