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Articles about gap
Thomson Reuters same-store sale index records modest April sales Friday, 10th May 2013
Photo credit: Thomas Reuters
The Thomson Reuters same store sales index shows how thirteen major U.S retailers have reported a 3.8 per cent increase in April sales at stores open at least a year.
The news comes after Wall Street optimistically expected a 4.3 per cent increase, and AlixPartners Managing Director Steve Nevill, says that Wall Street “got ahead of itself” with its expectations.
He went on to say that high unemployment and a lack of consumer confidence is the reason behind the modest April sales.
L Brands Inc, the group which operates companies Victoria’s Secret and Bath & Body Works, said sales at all company stores open at least a year were up 2 per cent last month, but shares fell 1.1 per cent.
Costco Wholesale Corp, which sells everything from computers, clothing to garden furniture and food, reported a 4 per cent gain, slightly less than expected. This is in part due to lower gas prices, but the company did say that food and consumer electronics were good, despite shares falling 0.5 per cent.
Not all retailers recorded a less than satisfactory performance however. TJX Cos Inc, which operates T.J. Maxx and Marshalls, and Ross Stores Inc, both surpassed Wall Street estimates comfortably.
Ross’ first-quarter profit forecast subsequently rose after reporting a 7 per cent gain in same-store sales. TJX Cos also saw same-stores sales rise to 8 per cent last month. Their shares were up 0.6 per cent whilst Ross Stores was up 0.2 per cent.
Gap Inc after-hours trading in the market sent their shares up 7.2 per cent, as they recorded a 7 per cent gain in sales for all their companies. Its profit forecast was above Wall Street expectations.
Spending is not expected to rise much in the coming months, as consumers’ concerns regarding the U.S and European economies, the debt debate In Washington, and lack of employment, remain rife.
Furthermore, many shoppers’ have delayed buying Spring clothes due to the cool weather in April.
Adrienne Tennant, market analyst for Janney Capital Markets, said this week that retailers were more aggressive in offering April discounts. She continued to say that discounts had eased up by the end of April, suggesting retailers’ had not over-ordered, avoiding panicked markdowns.
Posted in Consumers, Retail Industry, Supermarket News Tagged same-store sales index, Wall Street, Victoria's Secret, Bath & Body Works, L Brands Inc, Costco, TJX Cos Inc, T.J Maxx, Marshalls, Ross stores, Gap
Gap Q1 earnings smash estimates Friday, 10th May 2013
Image courtesy of Gap
Gap has posted first-quarter projections that beat analysts’ estimates.
Shares in the company rose six per cent to USD 41.15 in after hours trading. Stock is up 39 per cent over the past 12 months.
For the quarter ended 4 May, the retailer has forecast per-share earnings of 68 cents to 69 cents. Analysts at Thomson Reuters originally estimates earnings of 56 cents.
Net sales for the period rose 6.9 per cent to USD 3.73 billion, topping analysts’ expectations of USD 3.67 billion.
For the five weeks ended 3 May Gap reported a total same-store sales rise of seven per cent, topping the 5.5 per cent estimation.
The business is planning to release its first quarter earning results on 23 May.
Posted in fashion Tagged Gap, apparel, fashion, fashion news
Gap profits up 61% thanks to boost from US store sales Friday, 1st March 2013
Photo credit: Gap Inc.
Gap Inc. reported a 61 per cent rise in fourth quarter profits on Thursday, as the company’s fortunes appear to finally be turning around.
The apparel retailer, which owns the Gap, Old Navy and Banana Republic brands posted net income of USD 351 million, or 73 cents per share, for the quarter ending 2 February, compared with USD 218 million, or 44 cents per share in the same quarter the year before.
Revenue rose 10 per cent for the retailer to USD 4.73 billion in the period. Analyst had on average expected 71 cents per share on revenue of USD 4.69 billion.
Gap said it expects a profit per-share of between USD 2.52 and USD 2.60 for the year, compared to the average of USD 2.59 per share predicted by analysts polled at Thomson Reuters I/B/E/S.
Sales for the quarter rose 10.5 per cent overall to USD 4.73 billion, while same-store sales were up 5 per cent.
Sales at North American stores, where Gap Inc. operates around 1,000 of its 3,245 stores worldwide, rose 4 per cent for its Gap brand, and 3 per cent for its Banana Republic label. Old Navy sales were up 8 per cent for the quarter.
Posted in Accessories News, fashion, Retail Industry Tagged gap, gap inc, banana republic, old navy, clothes, apparel, profit, income
Topshop to open 10 U.S. stores Wednesday, 27th February 2013
Image courtesy of Topshop
Topshop is to open ten stores across the United States in the next two years after the recent launch of its Los Angeles flagship was a roaring success.
Although the retailer’s footprint in the country will not post a significant threat to Gap and Limited Brands, a shake-up in the fast fashion market is expected.
Posted in fashion, Franchise & Expansion Tagged Topshop, Gap, Limited Brands, US Retail, Fashion, Expansion & Franchise
Gap to buy luxury boutique Intermix for $130m Thursday, 3rd January 2013
Photo credit: Gap Inc
Gap Inc is reportedly set to buy women’s fashion boutique Intermix Inc in a deal worth USD 130 million as it looks to enter the luxury clothes market.
According to the Wall Street Journal, Art Peck, president in charge of new brands at Gap, has said the apparel giant will double Intermix’s store numbers and look to expand the chain overseas.
Intermix currently has around 30 stores in the United States and Canada, although it is its relationships with designers such as Yves Saint Laurent and Herve Leger that analysts believe Gap could benefit from.
Speaking to the Wall Street Journal, Intermix founder and chief executive, Khajak Keledjian described the boutique as an “incubator with emerging brands”. Although Intermix does not produce its own clothes, Keledijan suggested it would be able to help out other luxury brands with collaborations, something Gap rivals Hennes & Mauritz have utilised in recent years to boost publicity for their stores and products.
Posted in Deals and Takeovers, fashion, Retail Industry Tagged gap inc, art peck, gap, intermix, buy, deal, offer, million, luxury, brand, boutique, clothes, fashion
Gap raises outlook for the year after bumper third quarter Friday, 16th November 2012
Image courtesy of Gap
Gap has raised its outlook for the year after reporting a third-quarter net income increase which smashed analysts’ expectations.
Net income for the quarter ended 27 October reached USD 308 million, up 60 per cent compared to USD 193 million reported in the same period a year ago. Third-quarter earnings per share were up 66 per cent to 63 cents, compared with 38 cents last year.
Gap, which owns Gap, Old Navy, Banana Republic, Piperlime and Athleta, raised its guidance for fiscal 2012 to USD 2.20 to USD 2.25, up from the August forecast of USD 1.95 to USD 2.
“We’re very pleased with our strong third-quarter financial performance, highlighted by how well customers have responded to our product,” said Glenn Murphy, Gap Inc.’s chairman and chief executive officer. “We are ready to compete and win this holiday season as we drive to build upon our top-line growth.”
Gap shares rose USD 1.22, or 3.7 per cent, to USD 34.48 in after hours trading.
Posted in fashion, Fashion News Tagged Gap Inc., Gap, Banana Republic, Old Navy, Piperlime, Athleta, fashion, my, retail, media, news
Deutsche Bank upgrades Alhokair to buy Wednesday, 10th October 2012
Photo credit: Artist's' impression of the Uptown Tbilisi Mall, Georgia
Deutsche Bank has upgraded Alhokair to buy, as impressive growth and untapped potential make it the ’top pick’ among Saudi retailers.
The Saudi Arabian franchise operator, who counts Marks & Spencer, Inditex, Gap and Superdry amongst its joint venture partners, has been racking up an aggressive expansion rate in the Middle East and CIS region.
Citing ‘impressive growth’ and Alhokair’s ability to ‘secure good brands and real estate locations’, Deutsche Bank’s latest report on the Saudi Arabian retail climate saw the firm upgrade Alhokair to a buy, adding that: “the market has not properly appreciated the company’s expansion in both the CIS countries and Saudi Arabia.”
“The success of Alhokair in the CIS countries can be explained by the complete absence of retail specialist shops in these countries.” Analyst Marc Hammoud at Deutsche Bank stated in a markets report on Tuesday.
“For example, when Alhokair launched operations in Georgia with 15 stores in the newly opened Tbilisi Mall last April, it became the country’s largest retail group. We note that Alhokair had 23 retail stores in Georgia as of 30 June 2012. Another example that illustrates our point well is the USD 250,000 sales reached on the Zara store’s opening day in Kazakhstan; this was the highest sales figure ever reached by Zara on the opening day of a store.”
The upgrade no doubt signifies another year of impressive expansion for Alhokair. With the acquisition of Saudi retailer and franchisee NESK in July this year, Alhokair was able to add six brands and around 125 stores to its brand portfolio. Along with this, new retail operations in Azerbaijan, Georgia and Morocco this year saw Alhokair strengthen its presence on a global scale, as the company plans to open its first stores in Armenia, Pakistan, Turkmenistan, Belarus, as well as accelerate growth in the US.
As the UK struggles to emerge from a double dip recession, developing markets including the Middle East and CIS regions have become a new focus for retailers looking for growth on a global scale. With Chinese markets beginning to falter, Alhokair’s presence in Saudi Arabia and surrounding regions is likely to prove popular with brands keen to expand.
In contrast to Britain’s recent decline in consumer confidence, high government spending, a vibrant economy and strengthening consumer spending power were all cited by Deutsche Bank as key drivers for the Saudi economy:
“Saudi Arabia’s young and fast-growing population, strong economic growth,
colossal government spending, improving disposable income driven by job creation and increased social benefits, high consumer confidence, ongoing development in retailing and retail projects (malls), increasing religious tourism, and shift from traditional attire to western apparel are the key macro factors supporting the growth story of Alhokair.”
“We expect continued high government spending and improved consumer spending power to maintain Saudi Arabia’s double-digit point-of-sales value growth and high cash withdrawals in 2012.”
Counting 996 stores in its domestic market of Saudi Arabia, Alhokair is now looking to increase the 210 stores, or 17 per cent of its retail operations outside of the country to 40 per cent by 2015.
Posted in Deals and Takeovers, Fashion News, Franchise & Expansion, Retail Industry, Retail Property Tagged alhokair, fawaz alhokair, fashion retail, franchise, marks & spencer, inditex, gap, superdry, nesk, acquisition, deutsche bank, mena, cis, region, middle east, saudi, saudi arabia
Gap beats the Street with September sales Monday, 8th October 2012
Photo credit: Old Navy
Gap Inc. saw September same-store sales rise 6 per cent, as the Old Navy, Banana Republic and Gap retailer continues to grow from strength to strength.
Analysts polled by both Thomson Reuters and Wall Street expected an average increase of 5.3 per cent. The results signify a turnaround for Gap, whose same-store-sales for September 2011 fell 4 per cent from the year before.
Revenue at stores open at least a year rose 6 per cent on a global basis, while total net sales for the five weeks ending 29 September were up 8 per cent to USD 1.45 billion. A 10 per cent increase at the group’s Old Navy operations led the positive results, which saw Gap Inc. shares rise 1 per cent on Monday’s trading.
Posted in fashion, Accessories News Tagged gap, gap inc, banana republic, old navy, retail, store, profit
US retailers flock to join mobile wallet service Tuesday, 2nd October 2012
Major US retailers including Gap Inc and Bed, Bath & Beyond have joined a mobile payments network that will compete against rival companies from Google Inc and the like.
The Merchant Customer Exchange has also attracted the attention of Wal-Mart, Target and 7-Eleven since announcing plans in August.
As yet, the service is in its foetal stage and has not set a launch date.
The technology allows shoppers to transform their mobile phones into devices that can be used to pay for goods and services
Posted in E-Commerce, fashion, Food, M-Commerce Tagged Gap, Bed Bath & Beyond, Google Inc, Wal-Mart, Target, 7-Eleven, Food, Fashion, my, retail, media, news, m-commerce
Moving on up: retailers' surprise boost for August sales Thursday, 30th August 2012
Photo credit: Gap Inc
Gap Inc, Nordstrom, Target, TJX Companies, Buckle Inc and Limited Brands gave the retail industry a much needed boost after all reporting an unexpected leap in sales.
August same-store sales in the US rose by a better-than-expected 3.6 per cent according to Thomson Reuters I/B/E/S, after forecasts had decided on a 2 per cent increase.
It’s hoped the sales growth, which is largely attributed to back to school purchases, will put consumers in a good mood in the run up to the peak holiday trading period.
As one of the biggest winners in the August announcements, Gap Inc saw same-store sales rise 9 per cent, whist Nordstrom reported a 21 per cent rise in same-store sales, almost double the 11.1 per cent expected by analysts.
Posted in fashion Tagged gap inc, gap, nordstrom, target, tjx, buckle, limited brands, sales, profit, increase, raise, outlook, august, back to school
