May 10, 2016
Specialty clothing chain Gap reported that 1Q revenue and profits fell short of Wall Street expectations. Its forecast reflected slower traffic and more discounting.
Though official 1Q earnings won’t be released until May 19, Gap said it achieved $3.4 billion in net sales during the first three months of the year. This is below consensus estimates from Thomas Reuters, which called for $3.5 billion. The figure was also less than the $3.6 billion in sales posted in the prior-year period.
The company said in a press release that it is “identifying opportunities to streamline its operating model to be more efficient and flexible. . .” The retailer is also evaluating the performance of its Old Navy and Banana Republic chains overseas.