Buybacks have gotten a bad rap from both Republicans and Democrats. But stocks would be trading at a massive discount without them.Marketsread more
Fiat Chrysler and France's Renault could soon partner up to take on the sweeping changes to the global auto industry, according to a report in the Financial Times. The...Autosread more
Microsoft shares have gained 133% since November 2015, outperforming a tech "basket of unicorns" over that stretch.Technologyread more
The president's state visit comes amid tensions with carmaker Toyota over potential auto tariffs. Trump has repeatedly threatened Japanese and European carmakers with tariffs.Traderead more
The IRS is about to release a new draft of Form W-4, which will more closely reflect the changes stemming from the Tax Cuts and Jobs Act. For workers, that means they'll need...Personal Financeread more
When commercial real estate investor Manny Khoshbin spent $2.2 million on the fastest production car in the world, he had no idea it would very quickly also become the...Autosread more
The Mega Millions jackpot has spilled over $400 million. It would be the ninth largest winning since the game began in 2002.Personal Financeread more
Trump was speaking at a meeting of Japanese business leaders in Tokyo during his state visit to Japan on Saturday.Marketsread more
The biggest U.S. gasoline price surge in years is running out of steam just in time for the start of the summer driving season.Energyread more
The federal minimum wage has remained $7.25 per hour since 2009. But several states, and even some companies, have since taken matters into their own hands to pay employees a...Workread more
Stocks rose on Friday, but notched weekly losses as investors worried the U.S.-China trade war is hurting economic growth.US Marketsread more
Gap Inc. shares are tumbling after the apparel retailer reported same-store sales for its namesake brand after the bell on Thursday that missed analysts' expectations for the second quarter, overshadowing a beat on earnings and revenue.
The stock was still falling more than 10 percent Friday morning on the news.
CEO Art Peck, who has been at the helm of Gap since 2015, has been working to trim excess inventory and compete with fast-fashion retailers like H&M and Zara. Gap's other brands include Banana Republic, Athleta and Old Navy, the latter being the company's strongest growth driver in recent quarter and the biggest division by sales. Gap recently named a new CEO, Neil Fiske, to head up the namesake brand, with the goal of bringing new styles to Gap more frequently and targeting the right shoppers with its jeans and basic tees.
But sales at Gap-branded stores open for at least 12 months fell 5 percent during the second quarter, more than a 2.55 percent drop expected by analysts, according to a survey by Thomson Reuters. Same-store sales at Old Navy, meanwhile, climbed 5 percent, ahead of an expected 4.5 percent increase.
"Opportunity for improvement remains at [the] Gap division, while Old Navy and Banana Republic results were solid," Cowen & Co. analyst Oliver Chen said in a research note. "With the new Gap brand president and management's commitment to turn around the business, we think Gap's mishap will be addressed by the end of the year."
Net sales for Gap Inc. rose 7.5 percent in the quarter ended Aug. 4 to $4.09 billion, beating a forecast by analysts for $4.01 billion.
Excluding one-time items, the apparel retailer earned 76 cents per share, 4 cents ahead of analysts' expectations.
"As I've said, we will see continued improvement at Gap Brand as we move through the year and that remains the view," Peck said on an earnings conference call. "Quarter by quarter, we expect performance to improve and we believe the worst is behind us."
Peck also said improving Gap's supply chain continues to be a key focus for the company.
"There's no question that this is an important factor powering Old Navy's consistency, Athleta's growth, and Banana's continued turnaround," he told analysts and investors.
Gap shares have fallen about 5 percent so far this year, bringing the retailer's market cap to roughly $11.3 billion.