Gap Inc. shares fall in premarket trading after reporting same-store sales declines
Gap Inc. is down 6.3% in Tuesday premarket trading in the wake of disappointing July and second-quarter same-store sales at the Banana Republic and namesake brands. Old Navy reported flat same-store sales for the month and the quarter. Overall, Gap Inc. reported a 4% same-store sales decline for the month, and a 2% same-store sales decline for the second quarter. "Unfavorable weather, soft traffic trends and uninspiring product assortments contributed to the disappointing results," wrote Stifel analysts on Monday. The bank believes there will be continued challenges in the near-term. "The prolonged underperformance at the Gap businesses despite management's best efforts has undermined our confidence and limited our visibility for improvement," Stifel said. Analysts maintained their hold rating on Gap shares. Gap shares are down 26.6% for the past year, but up 3.7% for the year to date. The S&P 500 Index is up 6.7% for the year so far.
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