Stifel Comments on Gap's (GPS) June Sales Numbers
- Top 10 News for 2/1 - 2/5: Payrolls Gain, Unemplment Wanes; Investors Move Out of LinkedIn; Viacom Legend Steps Down
- Technology rout pushes Nasdaq to lowest close since 2014
- Change in Nonfarm Payrolls 151K vs 190K Expected; UE Rate 4.9% vs 5% Expected
- Investors Smell Opportunity in Flint's Stinky Water
- Business services firms' shares bleed as LinkedIn, Tableau crash
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
- UBS Remains Confident as Beazer Homes (BZH) Remains on Track to Drive Improved Results - Reiterates Buy
- BMO Capital Raises Price Target on Acxiom (ACXM) as New Strategy Drives 3Q Beat
- Mizuho Securities Maintains Buy as PerkinElmer (PKI) Provides Positive Commentary on China Post 4Q
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!