Stifel Comments on Gap's (GPS) June Sales Numbers
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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.
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