Shares of Gap Inc (NYSE:GPS) are up more than 4% on Friday after the apparel retail company announced that sales at established stores fell 6 percent in May, better than the 8 percent fall anticipated by analysts.
After the announcement, Deutsche Bank (NYSE: DB) increased its price target of the stock from $16 to $17. Deutsche Bank analyst said in a note, “May comp results surprised to the upside and showed sequential improvement.”
Gap still has to deal with overall declining demand. Since January 2015 the drooped in value by more than 50%, due to several factors including missing expectation on quarterly earnings reports, a straggling retail sector environment, and-overall problematic market.
Gap has previously explained that the Gap brand is being hurt by fast-fashion retailers such as Hennes & Mauritz AB and Zara
squeezed by fast-fashion retailers such as Hennes & Mauritz AB and Inditex SA, owner of the popular fashion store Zara.