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The Gap Inc.

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Gap has outperformed the broader industry year to date, as its turnaround efforts are well on track. The company is focused on its latest transformation plan, and is bringing meaningful changes to its product portfolio and operating capabilities worldwide. Further, the company remains keen on streamlining its operating model by creating a more proficient global brand structure and cutting costs. These growth drivers helped the company to deliver a decent fourth-quarter that marked Gap’s third sales beat. However, results continued to be hurt by currency woes, costs associated with planned store closures, and persistent weakness across Banana Republic. Currency is also expected to linger and hurt fiscal 2017 results, as is evident from Gap’s soft view. Additionally, stiff competition remains a threat. Nonetheless, Gap’s shareholder-friendly moves and focus on omnichannel development, remain noteworthy.

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