American fashion company Gap has forecast lower full-year profits because of a strong dollar and the brand's waning popularity.
22 % of Gap's turnover comes from abroad, but is negatively impacted by the strong dollar. The company also expects slower deliveries because of issues in several US harbours on the West Coast. For its full year, Gap expects a 16 cent profit drop per share.
Yearly profit would reach 2.75 - 2.8 dollars per share, slightly lower than what analysts had predicted (2.81 dollars). In its past fiscal year, Gap managed a 2.87 dollar profit per share: net profit grew 4 % to 319 million dollars (285 million euro), while turnover grew 2.8 % to 4.71 billion dollars (4.2 billion euro).
The clothing brand however is still struggling, which is why its creative director position was cut and replaced with the position of executive vice-president product design and development. Wendi Goldman, previously Victoria's Secret's chairwoman, will assume the position and will be tasked to reignite the brand's flame.