Tags: Gap | Shares | August | Sales

Gap Shares Tumble as August Sales Fall Short

Thursday, 04 Sep 2014 05:33 PM

Shares of Gap Inc. fell in late trading Thursday after the retailer posted August same-store sales that trailed analysts’ estimates amid weakness at its namesake clothing chain.

Sales online and at stores open at least a year declined 2 percent, the company said in a statement after regular stock market trading closed. Analysts estimated a 1.7 percent gain. Sales by that measure at Gap-brand stores slid 6 percent, while analysts projected a 0.4 percent drop.

Chief Executive Officer Glenn Murphy has been working to maintain sales growth as the choppy economic recovery restrains shoppers’ appetites for new fashions. The August performance at the Gap chain will likely hurt its gross margin for the current month, the company said in the statement.

At about 5:30 p.m. in New York, Gap shares were down 6 percent at $43.80, after trading as low as $43.36 shortly after the close. San Francisco-based Gap's shares  had risen 19 percent this year through the close of regular trading Thursday.

Gap’s bargain-priced Old Navy chain posted the best same-store sales at the company with a 2 percent gain last month. That still trailed the 3.6 percent increase analysts estimated.

Banana Republic’s sales fell 2 percent, while analysts projected a 1.1 percent gain.

Separately, surf and snowboard apparel retailer Quiksilver Inc. posted an unexpected third-quarter loss, hurt in part by late product deliveries.

The adjusted loss from continuing operations was 20 cents a share, the Huntington Beach, California-based company said today in a statement. Analysts estimated profit of 3 cents a share.

Quiksilver's shares fell as much as 20 percent in late trading, and at 5:30 p.m. in New York were down 14 percent at $2.44 each.

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Shares of Gap Inc. fell in late trading Thursday after the retailer posted August same-store sales that trailed analysts' estimates amid weakness at its namesake clothing chain.
Gap, Shares, August, Sales
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2014-33-04
Thursday, 04 Sep 2014 05:33 PM
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