The Gap Inc (NYSE:GPS) Reports Dip In Sales
Last month, The Gap Inc (NYSE:GPS) reported a sudden dip in sales. This put a break on the momentum that it had gained since the start of 2012. The company said that there was a drop of 3 percent in same-store-sales, which was below the average analyst estimate of 1.8%. By brand, The Gap Inc (NYSE:GPS)’ global sales dropped by 3% in comparison to the 3% rise from the previous year.
These numbers indicate that the consumers are still being very thrifty with their spending habits and higher taxes are definitely one of the main reasons for this. Another major reason is the Affordable Care Act has been implemented and the country has experienced the 1st government-shutdown in 17 years. This took effect on 1 October. The weather has also been much warmer than usual which has affected sales of merchandise which is targeted for fall shopping. Retailers have had to raise discounts to attract customers.
In Friday’s trading, The Gap Inc (NYSE:GPS) dropped by 6.71%. The opening price of the shares was $37.05, which climbed to an intraday high of $37.25 and dipped to a close of $36.83. Approximately 17.69 million shares were traded on Friday while an average volume of 4.19 million shares were traded over a 30 day period. The 52-week low of The Gap Inc (NYSE:GPS) shares is $29.84 and its 52-week high is $46.56. The company has a market capitalization of $17.22 billion.
About the company
The Gap Inc (NYSE:GPS) is a global-specialty apparel company. It offers a variety of apparel and accessories as well as personal-care products for women, men, children and babies. These products are sold under the Old Navy, Gap, Banana Republic, Athleta and Piperlime brands. The company operates in 2 segments: 1) Stores- this includes operations of the retail-stores for Old Navy, Gap and the Banana Republic, and also Direct- this includes operations for the company’s online brands- domestic and international.