Is Gap a Dead Brand?
Gap continues to struggle as it reported a drop in second quarter 2015 sales – a sign that their customer base continues to erode. Gap Global reported negative comparable store sales of 6 percent vs. negative 5 percent last year. Banana Republic Global reported negative comparable sales of 4 percent vs. flat last year. Only Old Navy Global reported positive sales figures of 3 percent vs. positive 4 percent last year. Total sales dropped from $4 billion to $3.9 billion. Earnings in the quarter were $0.52 vs. $0.75 the previous year. Adjusted for the impact of special situations, earnings would be $0.64 this year. That is pretty bad.