Specialty retailer, Gap, Inc. (GPS - Free Report) posted soft comparable store sales (comps) for the four weeks ending Nov 26, 2016. Also, net sales of $1.53 billion fell 2.5% on a year-over-year basis over the same time frame.
Though Gap’s comps for the four-week period dipped 1% compared with an 8% fall recorded last year, results largely gained from the positive customer response for its Banana Republic product assortments.
However, comps for November were hurt by the campus fire that broke out in its distribution center in Fishkill, NY in August. The fire affected the company’s November comps by 3 percentage points. Further, management stated that most of the unfavorable effect on the fourth-quarter fiscal 2016 comps due to the Fishkill distribution centre fire occurred in November.
Comps at Gap Global declined 3% compared with a 4% dip recorded last year. Further, performance at Old Navy recorded a 2% drop compared with a 9% decline last year. On the other hand, Banana Republic Global, which was persistently impacted by declining comps, recorded positive comps of 5% compared with a 19% fall witnessed last year.
Brand wise, the Fishkill fire hurt comps at each of the company’s brands. Comps for Gap Global included about 4 percentage points impact from the fire, while comps for Old Navy were hurt by nearly 1 percentage point. Further, Banana Republic’s comps, though positive, was hurt by an approximately 3-percentage-point impact from the fire.
Gap has undertaken several contingency steps with regard to the Fishkill fire to minimize the adverse effects from this calamity. These include the company’s act of rerouting deliveries and increasing the staff strength at other facilities. Evidently, Gap is using its North American distribution center channel and ship-from-store capacity to curtail the effect of the fallout.
Further, the company reported that November footfall remained challenging; however, the company was optimistic by the performance witnessed in the back half of the month. Also, the company remains on track with the execution of its holiday. This is evident from the holiday plans announced by its best-performing Old Navy brand and its namesake brand, which remains committed toward improving its performance.
In the past six months, Gap displayed a tremendous run in the index, as the stock surged 31.2% compared with the Zacks categorized Retail-Apparel/Shoe industry that increased 11.5%.
Apart from Gap, L Brands, Inc. , Costco Wholesale Corporation (COST - Free Report) and Zumiez Inc. (ZUMZ - Free Report) posted comps growth of 4%, 1% and 5.7%, respectively, for November.
Gap currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Specialty retailer, Gap, Inc. (GPS - Free Report) posted soft comparable store sales (comps) for the four weeks ending Nov 26, 2016. Also, net sales of $1.53 billion fell 2.5% on a year-over-year basis over the same time frame.
Though Gap’s comps for the four-week period dipped 1% compared with an 8% fall recorded last year, results largely gained from the positive customer response for its Banana Republic product assortments.
However, comps for November were hurt by the campus fire that broke out in its distribution center in Fishkill, NY in August. The fire affected the company’s November comps by 3 percentage points. Further, management stated that most of the unfavorable effect on the fourth-quarter fiscal 2016 comps due to the Fishkill distribution centre fire occurred in November.
Comps at Gap Global declined 3% compared with a 4% dip recorded last year. Further, performance at Old Navy recorded a 2% drop compared with a 9% decline last year. On the other hand, Banana Republic Global, which was persistently impacted by declining comps, recorded positive comps of 5% compared with a 19% fall witnessed last year.
Brand wise, the Fishkill fire hurt comps at each of the company’s brands. Comps for Gap Global included about 4 percentage points impact from the fire, while comps for Old Navy were hurt by nearly 1 percentage point. Further, Banana Republic’s comps, though positive, was hurt by an approximately 3-percentage-point impact from the fire.
Gap has undertaken several contingency steps with regard to the Fishkill fire to minimize the adverse effects from this calamity. These include the company’s act of rerouting deliveries and increasing the staff strength at other facilities. Evidently, Gap is using its North American distribution center channel and ship-from-store capacity to curtail the effect of the fallout.
Further, the company reported that November footfall remained challenging; however, the company was optimistic by the performance witnessed in the back half of the month. Also, the company remains on track with the execution of its holiday. This is evident from the holiday plans announced by its best-performing Old Navy brand and its namesake brand, which remains committed toward improving its performance.
In the past six months, Gap displayed a tremendous run in the index, as the stock surged 31.2% compared with the Zacks categorized Retail-Apparel/Shoe industry that increased 11.5%.
Apart from Gap, L Brands, Inc. , Costco Wholesale Corporation (COST - Free Report) and Zumiez Inc. (ZUMZ - Free Report) posted comps growth of 4%, 1% and 5.7%, respectively, for November.
Gap currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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