Stifel Comments on Gap's (GPS) June Sales Numbers
- Top 10 News for 7/27 - 7/31: Teva Makes it Official with Allergan; China Stock Slide Continues; Revised Q2 GDP Misses Mark
- ExxonMobil (XOM) Posts Q2 EPS of $1.00
- TerraForm Global (GLBL) IPO Opens at $14
- Unusual 11 Mid-Day Movers 7/31: (YRCW) (MGI) (HTCH) Higher; (EYEG) (RADA) (OCN) Lower
- UPS (UPS) to Acquire Coyote Logistics in $1.8B Deal
Stifel is issuing brief commentary on Gap, Inc. (NYSE: GPS) following June sales results.
Analyst Richard Jaffe said,
Comp store sales decreased 2% in June, below our estimate and consensus. Performance was weak at the Gap and Banana Republic divisions while Old Navy outperformed. We anticipate that the strength at Old Navy in 2Q will offset the weakness at the Gap and BR divisions. We anticipate better results from Gap and BR beginning Fall.
We anticipate that management’s efforts to clear inventory in July will prove effective, enabling the company to start 3Q with a leaner inventory position than LY. The recent developments at Piperlime in which the men’s business has been discontinued and much of women’s has been put on sale are the handiwork of a new management team at this division and their efforts to refocus the business on its core strengths in women’s apparel, accessories and shoes.
Stifel has Gap at Buy with a target price of $48.
Gap, Inc. closed at $41.42 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gap (GPS) Numbers Cut at Piper Jaffray on Stepped-Up Promotional Activity
- Needham & Company Raises Price Target on Netscout Systems (NTCT) Following Earnings Results
- Imperial Capital Raises Price Target on Casella Waste Systems (CWST) to $7.50 Following 2Q15 Results
Create E-mail Alert Related CategoriesAnalyst Comments, Retail Sales
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!