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Gap Earnings: Analysts Predict Marketing, Real Estate Revamp

Gap
CNBC.com
Gap

Apparel retailer Gap Inc. reports fourth-quarter earnings after the bell today. Analysts expect earnings of 24 cents, according to a poll by Thomson Financial. Investors are hoping the troubled retailer will offer some hope that a turnaround is possible. Kimberly Greenberger, retail analyst at Citigroup, and Gabrielle Kivitz, retail analyst at Deutsche Bank Securities, spoke with CNBC's Bill Griffeth this afternoon on Gap’s strategy.

The exits of CEO Paul Pressler and North America President Cynthia Harriss make this an especially difficult time for Gap Inc. “What we expect to see is a strategy to turn these businesses around, but it could be anticlimactic in the absence of a permanent CEO spot,” said Greenberger. Kivitz believes that Gap’s main focus should be more on “who their target audience is, and how to go after them with more clarity.”

In February, Gap announced it was closing its Forth & Towne 19-store chain aimed at older women. “We could hear an announcement about a real-estate strategy, specifically more store closings,” said Kivitz.