It has been a season of retail store closings. Macy’s Inc. (NYSE: M) has shuttered locations, beaten-up Sears Holdings Corp. (NASDAQ: SHLD) will close more, and Kohl’s Corp. (NYSE: KSS) announced 18 locations too. Gap Inc. (NYSE: GPS) has been closing stores for several years. Based on its recent earnings, the process should not be over.
Gap announced that in the 13 weeks that ended January 30, revenue was $4.38 billion, down from $4.71 billion the year before. Net income fell to $214 million from $319 million over the same period. In the quarter, comparable store sales dropped 7%, in contrast to a 2% increase in the same period of 2014.
The comparable store sales were uneven. Gap Global’s fell 6%. Old Navy Global’s were flat. Banana Republic Global’s fell 10%. The bulk of Banana Republic’s stores are in North America, where the store count dropped by six locations to 612. At the rate of the unit’s sales decline, Gap management will need to consider culling stores in 2016 as the trend continues.
Like all other retailers, Gap needs to get more of its revenue online, which should have a cost advantage over brick-and-mortar locations. Banana Republic needs to get there more rapidly.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.