Gap shares slump as profits unravel for most recent quarter
Shares in Gap have plummeted in after hours trading, after the retail giant revealed its incomes and sales had fallen during its most recent quarter.
The figures
Net income for the retailer for the 13 weeks to 29 October slipped to $204m (£164.2m), down 18 per cent from $248m for the same period the year before.
Meanwhile, net sales slumped to $3.8bn, a drop of two per cent from the prior year's $3.9bn.
Same-store sales also dipped, down three per cent, partly due to a fire which broke out in one of the clothing company's distribution centres in New York back in August.
Shares are currently down 4.8 per cent at $29.25 in after hours trading.
Why it's important
Gap is currently having a rethink about where best to place its stores around the world.
The retailer announced last month it would be shutting up shop on all eight of its Banana Republic stores in the UK, while, back in May, it revealed it was closing all of its Old Navy stores in Japan.
The company also recently revealed it was taking a new finance chief on board, with Teri List-Stoll all ready to start in January 2017.
What Gap said
Art Peck, chief executive of Gap, said:
I'm pleased to see improved product across our brands, as well as areas of healthier merchandise margins, even against the backdrop of challenging traffic trends during the quarter.
As we move into the holiday season, our teams are sharply focused on execution and delivering great experiences across the portfolio.