Why Gap Inc’s Shares Rose Despite Earnings Miss?
- Gap Inc’s shares have been up almost 5% since its earnings release, despite the company missing estimates
- This can be attributed to the retailer’s plan to discontinue Old Navy in Japan in the wake of dismal international results
- The metrics below indicate that this indeed is a sensible move, even though it may not appear so from the outside
- Even though contribution of Old Navy’s Asian revenues in Gap Inc’s international revenues has increased over the past year, the brand’s stores outside Asia generate almost twice as much revenue per store as they do in Asia
- Also, Old Navy’s revenue per store in Asia has fallen faster than other regions, which explains why the company has decided to close the Japan chapter of its Old Navy business
Have more questions about Gap Inc? See the links below:
- What’s Gap Inc’s Revenue & Net Income Breakdown In Terms Of Different Brands?
- By How Much Did Gap Inc’s Revenue & EBITDA Grow In The Last Five Years?
- What Is Gap Inc’s Fundamental Value Based On Expected 2016 Results?
- By What Percentage Can Gap Inc’s Revenues Grow Over The Next Three Years?
- How Are Gap Inc’s Old Navy Revenues & Earnings Expected To Grow Over The Next Five Years?
- How Are Gap Inc’s Banana Republic Revenues & Earnings Expected To Grow Over The Next Five Years?
- How Much Revenues Can Gap Inc’s Athleta Brand Add By 2020?
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