Pedestrians walk past Old Navy and GAP stores in Times Square in New York City.
Drew Enger | Getty Images
Difference Thursday mixed results and lackluster guidance for the current quarter, as the longtime mall retailer saw another quarter of sales declines for all four of its brands.
The company beat Wall Street estimates on the bottom line but lagged on the top.
Here’s how the apparel retailer performed in its fiscal second quarter against Wall Street’s expectations, based on a poll of analysts from Refinitiv:
- Earnings per share: 34 cents, adjusted vs 9 cents expected
- Revenue: $3.55 billion vs. $3.57 billion expected
The company’s net income for the three-month period ended July 29 was $117 million, or 32 cents per share, compared with a loss of $49 million, or 13 cents per share, a year earlier. Excluding one-time items, Gap reported net income of 34 cents per share.
Sales fell 8% to $3.55 billion, from $3.86 billion a year earlier.
there is one in the gap New CEO at the helm: East Mattel Executive Richard Dixon, who started the new role on Tuesday. The company is betting the branding expert, who oversees Mattel’s Barbie franchise, could breathe new life into Gap’s brands, its namesake banners Old Navy, Banana Republic and Athleta.
All four brands, which have vastly different assortments and customer bases, are seen quarter to quarter Sales decline – a trend Dixon would like to reverse.
Gap chairman Bob Martin, who had served as interim CEO for more than a year prior to Dixon’s appointment, was working to restructure the business and streamline its management organization so that the new chief executive would be on the ground as soon as possible. Be able to get down. ,
Over the past year, Gap Cut more than 2,000 employeesOr about 25% of its corporate roles, which has increased the number of direct reports for each manager from two to four and reduced management layers from 12 to eight, the company previously said.
The company previously said the cuts were designed to remove layers of red tape and bureaucracy to allow Gap to be more efficient in decision-making and focus on its creative efforts.
The layoffs are netting Gap about $300 million in savings, the first half of which will come in fiscal 2023. During its last quarter ended April 29, Gap’s margin expanded 5.6 percentage points year over year to 37.1%, despite a rise in aftermarket trading in its stock. Another quarter of declining sales.
This story is developing. Please check back for updates.