The clothing retailer Gap Inc (NYSE: GPS) expects to receive annual profit below analysts' forecasts, experiencing difficulties in attracting customers its stores – Banana Republic.
The company updates the clothing line Banana Republic, but comparable sales of the third-largest retailer brand decreased for the sixth consecutive quarter, as its products are not in demand among buyers.
Gap expects annual adjusted earnings in the range of $ 1.87- $ 1.92 per share, whereas previously they expected to receive approximately $ 1.92 per share.
Analysts on average expected a profit of $ 1.96, according to data published by Thomson Reuters I/B/E/S.
Net income fell to $ 125 million or 31 cents per share, in the second quarter ended July 30, from $ 219 million or 52 cents per share, a year earlier.
Excluding the number of balance sheet items, the retailer earned 60 cents per share, while analysts on average were expecting 59 cents per share.
Net sales remained unchanged from the figure of $ 3.85 billion, which the Company reported on August 8.
Gap Inc. is a US company, the largest retailer of clothing in the United States and the owner of the second largest network of stores selling clothes in the world. The company's headquarters is located in San Bruno, California (USA).
The company was founded in 1969 by Donald and Doris Fisher. In 1983, Gap acquired Banana Republic and 1994 was launched a new brand Old Navy.
As for the US stock market, it decreased in early trading on Friday on the statements of the Fed representatives. Dow Jones Industrial Average index fell 0.4% to 18 518.77 points, Standard & Poor's 500 fell 0.4% to 2177.56, and Nasdaq Composite Index dropped by 0.3% to 5225.08 points.
The President of the Federal Reserve Bank of New York, William Dudley, confirmed that the Fed may raise rates already at the September meeting.