Stifel Reiterates Hold on Gap, Inc. (GPS); Blames Distribution Fire for Comp Decrease
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
Get instant alerts when news breaks on your stocks. Claim your 2-week free trial to StreetInsider Premium here.
Stifel reiterated a Hold rating and $25.00 price target on Gap, Inc. (NYSE: GPS) following the company's September comp sales report. Comp sales decreased 3%, in-line consensus estimates. Management believes that a fire at the company’s Fishkill, NY distribution center is to blame for the loss.
Analyst Richard Jaffe commented, "September comp sales decreased 3%, in-line with our estimate and consensus. Management believes that comp store sales were negatively impacted by 3% due to a fire at the company’s Fishkill, NY distribution center (comps in October are also anticipated to be negatively impacted by 3%). The fire had the most significant impact on Gap brand’s online assortment but also affected Old Navy and Banana Republic. Management indicated that the lost sales from the fire will be more than offset by higher maintained merchandise margin than originally anticipated, making a strong case for Gap to operate with significantly leaner inventories. Given poor results at Gap and Banana Republic, likely attributable to unappealing merchandise assortments, we don’t view the product lost in the fire as an important loss but rather a fortuitous reduction in inventory."
Shares of Gap, Inc. closed at $22.78 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Mizuho Securities Adjusts Estimates Following Gap, Inc. (GPS) Comp Miss
- Schultz Will Be A Tough Act For Starbucks Coffee (SBUX) To Follow
- Jefferies Raises Price Target on US Physical Therapy (USPH) to $63 Following 12-Clinic Acquisition
Create E-mail Alert Related CategoriesAnalyst Comments
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!