Gap reports a fall in sales in the fifth straight quarter
Clothing giant, Gap Inc has reported a fall in sales during the fifth straight quarter at a time when the company was expected to start recovery. The shares of the company also fell as it recorded a lwer than expected profits for the first quarter.
The company sales fell during the first quarter of the year as the demand for its Banana Republic and Old Navy brands remained low in the market and the retailer struggled to bring back customers to its stores, who are wooed by competition. The company is struggling to compete with the likes of retailers such as H&M, Forever 21 and Inditex's Zara as experts said that GAP suffered from a series of fashion mis-calculations in recent quarters.
The company's Banana Republic and Gap brands continued to record a fall in sales but the sharp decline in demand for its Old Navy pose a bigger challenge for the company, which has been in business of almost five decades.Old Navy brand of the company has been a popular brand for the company for many quarters but the collections have been dull and uninspiring in recent quarters.
The shares of the company fell 12 percent in extended trading on Monday.The company's comparable sales fell 4 per cent in the previous month while Old Navy recorded a fall of 10 per cent and Banana Republic recorded a fall of 7 per cent.