Gap

Dropping Sales at Gap’s Key Brands hurt the Company’s Shares

Dropping Sales at Gap’s Key Brands hurt the Company’s Shares

San Francisco, California based Gap Inc, which operates five well known brands is struggling with declining sales. On Thursday, shares of the apparel company dropped almost nine percent during the after-hours trading.

It followed an announcement from the clothing retailer that reported its March results, revealing a slide in sales for the twelfth straight month. The retailer reported drop in comparable sales for three of its biggest brands in March. The company also warned entering April with a high levels of inventory that could affect the profit margins.

Gap net income rises by 3% in the second quarter

Gap-IncGap Inc. has declared its first quarter financial results for the current fiscal year of 2010-11 and the company has informed that it has posted a 3% hike in the net income figure in the reviewed quarter.

It has also said that its low-price Old Navy chain has posted better sales report which has boosted the net income of the firm up. However, the high-end Banana Republic of the firm has seen a decline in its sales.

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