Gap shares fell to their lowest level in four years following the announcement that the fashion retailer will miss its first quarter profit expectations.
The clothing giant said that quarterly like-for-like sales fell 3% at Gap, 11% at Banana Republic and 6% at Old Navy, due to softer than expected traffic in its stores meaning the retailer entered April with more inventory than expected. Gap shares, which have already fallen almost 45% over the past year, dropped over 12% in after-hours trading.
In a statement, Gap said that it was “identifying opportunities to streamline its operating model to be more efficient and flexible” which will include looking at its Banana Republic and old Navy locations outside of its core North American market. More details are expected in the company’s next trading update due next week.
