GAP hits expectations, despite profit drop

GAP hits expectations, despite profit drop

American fashion company Gap has experienced a profit drop in its second quarter of 2015. Turnover also dropped, but the company still managed to reach expectation levels.

Old Navy keeps growing

Gap's turnover dropped 2 % in the second quarter, down to 3.9 billion dollars (3.5 billion euro), which meant it still managed to beat analysts' expectations. The Gap chain's like-for-like turnover dropped 6 % in the second quarter, while Banana Republic fell 4 %. Old Navy on the other hand did well, with a 3 % growth.

 

Gap managed a 332 million dollar (295 million euro) profit last year, but for this year, it will have to accept a 219 million dollar (195 million euro) profit. Part of the profit loss comes on the back of a restructuring program, mainly within the Gap chain.

 

Fast fashion

Gap expects to spend 130 to 140 million dollars (115 to 124 million euro) in that regard this year, with plans to shut down 175 Gap stores and cut 250 jobs at the main office. That is CEO Art Peck's way to get the Gap and Banana Republic brands back on track and towards Old Navy's success.

 

In an attempt to cash in on the success chains like H&M and Zara have had, Gap will trial fast fashion in several stores in order to see whether that will help to tune into the fast-evolving fashion trends.

Questions or comments? Please feel free to contact the editors


Lucas Bols drunk in love with Passoã

16/11/2017

Liquor manufacturer Lucas Bols’ turnover has grown 23.8 % in the first six months of its broken fiscal year, to 48.8 million euro. Aside from 0.5 %, the entire growth is thanks to liquor brand Passoã’s integration.

"Hunkemöller prepares IPO"

16/11/2017

According to financial press agency Bloomberg, investment company Carlyle Group ordered Rothschild bankers to prepare an IPO for Hunkemöller.

Italian Food-focused theme park opens in Bologna

16/11/2017

Fans of Italian cuisine have to head to Italian Bologna, where Eataly World opened, a theme park focused on Italian pasta, wine, pizza and more.

CEO Bernard Deryckere will leave Alpro

16/11/2017

Bernard Deryckere, who was the man behind Belgian dairy company Alpro’s international success, will leave the company after sixteen years. Apparently, he will leave because of differences of opinion with its new owner, Danone.

Ahold USA trials robot in Giant Food Store

15/11/2017

Ahold USA is currently trialing a robot in a Giant Food Store. Its job is to detect dangers and then ask for assistance. He can also point out empty shelves and check prices.

India is promised land for Belgian apples and pears

14/11/2017

India is turning into the promised land for Belgian fruit farmers. It is already Belgian apples’ most important non-European market and Belgian pears are also promoted throughout the country.

Back to top