Gap Inc. (NYSE: GPS) Thursday announced that net sales for the five-week period ended January 2, 2016 decreased 4% to $2.01 billion compared with net sales of $2.10 billion last year. Stock price slumped 14.32% to $229.1 on Friday.
“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.
Gap Inc.’s comparable sales for December 2015 were decreased 5% compared with 1 % increase last year. Comparable sales of global brand for December 2015 were all tumbled. Gap Global decreased 2% compared with 5% decrease last year. Banana Republic Global indicated negative 9% for comparable sales. Old Navy Global was negative 7% compared with positive 8% last year.
Gap has been trying hard to revamp its namesake brand. The company associated former Banana Republic veteran Wendi Goldman to join the team, who had led the Pink line at Victoria’s Secret. Gap have been working on cost reduction strategy.
Gap’s results come in contrast to the better-than-expected sales growth reported by several retailers this week for the holiday season. The whole information of the holiday season remains uncertain, but as many retailer giants—such as Wal-Mart Stores Inc. (NYSE: WMT) Target Corp. (NYSE: TGT) and Amazon.com Inc. (NASDAQ: AMZN) —haven’t breakthrough their holiday sales records.
Retailer sector faced a lot of obstacles when the holiday season coming More and more customers willing to purchase online instead of go to shopping malls. In addition, shoppers keep looking for deep discounts which forcing retailers to offer promotions and potentially decrease their profits.