Wedbush Comments on Gap (GPS) June Sales; Analyst Says Risks Will Linger into H2
- Fed's Lacker Sees 'Strong' Case for June 'Liftoff'
- Unusual 11 Mid-Day Movers 3/31: (GBSN) (RADA) (SMTX) Higher; (BDR) (GV) (EGY) Lower
- Charter (CHTR) Agrees to Acquire Bright House Networks in $10.4B Deal
- Goldman Sachs 'Warming Up' to Tesla (TSLA)
- CBRE (CBG) to Acquire Johnson Controls (JCI) Global WorkPlace Solutions Unit in $1.48B Deal
Wedbush maintained a Neutral rating on Gap, Inc. (NYSE: GPS) with a price target of $44. Comments follow June sales numbers.
Analyst Morry Brown"GPS’s -2% comp for June fell short of consensus estimates for a +0.7% increase, in a month that most peers (3 of the other 4 monthly reporters) beat consensus. Gap’s -7% comp came in well below consensus of -0.7%. BR also comped -7% versus consensus of +2.3%. Old Navy was the lone bright spot, with a +7% comp against a +0.1% consensus forecast."
"Sales at Gap slowed meaningfully, as the -7% comp was a 400 bps deceleration from May, or 700 bps on a two-year stack basis. In addition to poor merchandise execution, executives believe timing of website clearance activity (which was started a week after the company began messaging sales in stores) also held back sales. We are focused on the merchandising challenges, and June results reinforce our concern there is risk that current issues linger into 2H," added the analyst.
Shares of Gap, Inc. closed at $40.97 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Micron Technology (MU) PT Trimmed at Wedbush Ahead of Q2 Print; Remains a 2nd-Half Story
- KeyBanc Upgrades PNM Resources (PNM) to Overweight
- Deutsche Bank Previews Micron's (MU) Q2 Results
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, 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!