Gap Expects Sales To End In The Past 2017 Years In The Year Of Fiscal Year.

According to the world clothing shoes and hats net,

Cape brand sales stabilized in the fourth quarter of fiscal year 2016, and the Banana Republic Banana Republic fell significantly narrowed, Old Navy Old Navy can regain market share, the largest in the United States.

Franchised retailer Gap Inc. (NYSE:GPS) Cape Group expects sales to be flat or slight growth in the current fiscal year 2017, ending the last two years of downtrend.

Gap Inc. (NYSE:GPS) shares edged up 0.13% to 24 dollars after the quarterly announcement on Thursday, 23.

Art Peck, CEO of Gap Inc., said at the post earnings conference that the words "death", "dying" or "sick" appeared on the headlines. They were not related to the group. In fact, they were "healthy, strong, planned and clear".

Since its promotion to CEO in February 1, 2015, Art Peck has closed hundreds of stores and fired creative directors with design power, relying on market data analysis to grasp the trend and demand trends to enhance product quality and aesthetics, helping the group place the right products at the right time at the right time.

He also improved the supply chain, maintained low inventories and adopted cost cutting measures.

However, it has only been two years ago that the Art Peck has been challenged by the slow pace of recovery.

Since the beginning of February 2015, the stock price of Gap Inc. (NYSE:GPS) has fallen by more than 4.

In the key holiday season as of January 28, 2017, the Gap Inc. Cape group achieved 2% of the same store sales growth, the first growth in the Art Peck term, compared with a 7% decline in the previous year.

Maximum period

The old navy of Old Navy has increased by 5%, and has been growing for two consecutive quarters, and the main categories such as dresses, jeans and knitted sweaters have increased the market share. The Gap brand has remained flat, down 3% from the same period of the previous year, and 8% in the three quarter, which has also ended nearly 3 years of decline. The acceptance of products in core categories and departments has improved. The decline of Banana Republic Banana Republic has narrowed to 8% in the 14% and three quarter of the previous year.

At present, the weakest Banana Republic Banana Republic is handled by ArtPeck personally, and the brand president is also looking for it. Some analysts even believe that the brand should be disposed of, whether it is for sale or directly ending business.

The Gap Inc. group's smaller women's wear and lifestyle brand Athleta has developed rapidly, and up to 132 US stores as of 2016, and this year the group is expected to be dominated by Athleta and Old Navy Old Navy in new open stores, of which 15 are Athleta.

Art Peck expressed optimism about the brand and its future growth prospects.

Athleta was founded in 1998 and was purchased by Gap Inc. Cape group for $150 million in 2008. The group does not disclose the brand data.

Gap Inc. Cape group CEOArtPeck said that the acceptance of Gap cap Pu brand was improved.

Art Peck recalled at the post earnings performance conference last year that some of its competitors have withdrawn from the market last year (American Apparel LLC, the Stores, Wet Wet and other industries all applied for bankruptcy), showing that the industry has undergone rapid and rapid changes.

In the context of structural change in the clothing market, he believed that the Gap Inc. Cape group had strong performance last year, while the collapse of the same industry had a significant market share opportunity. If Gap Inc. Cape group combined the advantages of structure and scale with the improvement of product and experience, this opportunity could be grasped.

The key lies in product and speed.

Art Peck revealed that they have been able to reduce most of the categories from development to shelf life from 10 months to 8-10 weeks, allowing the group to manage inventory in different modes.

As of January 28th, group merchandise inventories amounted to $1 billion 830 million, down 2.3% from the US $1 billion 873 million in the same period of the previous year. The group also estimated that 2017 stocks at the end of the second half of the year could also record a year-on-year decline in the low figure.

Net sales in the fourth quarter of Gap Inc., capuchin group, rose 1% to $4 billion 429 million a year, better than the market expectations of $4 billion 390 million, and the first recorded increase in the 7 quarter.

Net profit of $214 million was 2.8% higher than that of the previous year's $220 million. EPS rose from $0.53 to $0.55, adjusted EPS to $0.51, which was in line with analysts' expectations. During the period, luxury retailers and e-commerce Intermix produced a 71 million dollar impairment loss of goodwill.

In the 2016 fiscal year, the group's net sales totaled $15 billion 516 million, a decrease of 1.8% over the 15 billion 797 million US $2015 fiscal year.

Net profit dropped by 26.5% to 676 million dollars, EPS dropped from $2.23 to $1.69, adjusted EPS to $2.17.

The Group expects EPS in fiscal year 2017 to be in the 1.95-2.05 US dollar, while the adjusted EPS in the first half of the fiscal year will record an annual decline in the high digits.

As of January 28, 2017, the Gap Inc. group had 3659 stores in 50 markets (3200 were direct stores), and 113 stores were closed in the fourth quarter.

During the year, the sales area decreased by 3%, which is in line with the group target. The group has planned to withdraw the Old Navy brand of Old Navy from the Japanese market, and has ended some Banana Republic Banana Republic stores in the international market.

Gap Inc. (NYSE:GPS) reported $23.97 on Thursday 23, a 3.62% drop in the whole day, narrowing its total growth to 6.82% in 2017 and 8.65% in the past 52 weeks.

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