Gap Inc (GPS) Reports Lower December Sales


As if things couldn’t get any worse for Gap Inc (NYSE:GPS) shareholders, who have seen their investment nearly cut in half over the last nine months, today the company reported that their December sales are down 5% when compared with last year’s numbers. According to the company, their Old Navy Global brand suffered the worse this December, with sales down 7% when compared to last December, when sales were up 8 percent when compared to the year prior. Gap Global has the best of the poor numbers this last month, with a just 2% sales loss compared to the year prior.

“As we bring the holiday season to a close, we look forward to delivering new Spring collections across our brands,” said Sabrina Simmons, chief financial officer of Gap Inc.

They will certainly need these new collections to sell well in order to keep their numbers from sliding further. The stock closed at $26.74 during the last trading session. It is down 30.71% since June 4, 2015 and is downtrending. It has underperformed the S&P500 by 26.02%.

From a total of 29 analysts covering The Gap Inc. (NYSE:GPS) stock, 5 rate it a “Buy”, 8 a “Sell”, and 16 a “Hold”. This means that 17% of the ratings are positive. The highest target price is $48 while the lowest target price is $19. The mean of all analyst targets is $30.75 which is 15.00% above today’s ($26.74) stock price. The Gap Inc. was the topic of 71 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Cantor Fitzgerald maintained shares on December 4 with a “Hold” rating. Bernstein maintained shares with a”Market Perform” rating and a $28 target share price in their report from a November 17. Wedbush maintained GPS stock in a recent report from November 20 with a “Neutral” rating. Barclays Capital initiated the rating on October 29. Barclays Capital has a “Underweight” rating and a $22 price target on shares. Finally, Mizuho maintained the stock with a “Underperform” rating in a report they issued on a November 20.

The institutional sentiment decreased to 0.9 in Q2 2015. It’s down 0.10, from 1 in 2015Q2. The ratio fall, as 66 funds sold all their Gap Inc shares they owned while 155 reduced their positions. 53 funds bought stakes while 147 increased their total positions. Institutions now own 232.63 million shares which is 0.99% more than the previous share count of 230.34 million in 2015Q2.

Hall Kathryn A. holds 95.24% of its total portfolio in Gap Inc, equating to 3.39 million shares. Rbs Partners L.P. owns 3.93 million shares representing 7.14% of their total US portfolio. Moreover, Jasper Ridge Partners L.P. has 3.95% of their total portfolio invested in the company, equating to 1.86 million shares. The United Kingdom-based Nevsky Capital Llp has a total of 3.7% of their portfolio invested in the stock. Cornerstone Investment Partners Llc, a Georgia-based fund reported 4.13 million shares owned.

Since March 11, 2015, the stock had 2 buys, and 0 selling transactions for a total of $267.71 million in net activity. Fisher Robert J bought 3.08M shares worth $101.75M. Fisher John J bought 5.03 million shares worth $165.96 million. Kirwan Jeff sold 535 shares worth $20,865. Montoya Jorge P sold 7,500 shares worth $286,868. The insider Martin Bob L sold 7,500 shares worth $327,478.

The Gap, Inc. is an apparel retail company. The company has a market cap of $10.75 billion. The Firm offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta and Intermix brands. It has 10.95 P/E ratio. In addition to operating in the specialty, outlet, online and franchise channels, Gap Inc. is an apparel retailer in using omni-channel capabilities for digital world and physical stores.