Gap Profit Falls Amid Revamp of Flagship Brand

Jasper Ridge Partners L.P. is another bull as the investment professional who is possessing 1.86 million shares of Gap or 5.92% of their fund’s portfolio. The firm has a 50-day moving average of $36.29 and a 200 day moving average of $39.30.

The company said net income fell by more than a third to $219m (£140m) or 52 cents per share, in the second quarter, from $332m, or 75 cents per share, a year earlier.

Gap (NYSE:GPS)’s stock had its “neutral” rating restated by equities researchers at Piper Jaffray in a note issued to investors on Friday, MarketBeat.com reports. The 1-year stock price history is in the range of $33.55 – $46.85.

Tight inventory controls and short lead times have also helped the company offer fewer discounts at Old Navy, helping margins.

The firm also recently disclosed a quarterly dividend, which will be distributed on Wednesday, October 28th. In this transaction, 535 shares were sold at $39 per share. As per the latest information, Stifel Nicolaus Lowers the price target to $40.00 per share from a prior target of $48.00. The stock was sold at an average price of $38.37, for a total transaction of $44,394.09. They set an underperform rating and a $30.00 price objective for the company. The ex-dividend date of this dividend is Monday, October 5th. Four research analysts have rated the stock with a sell rating, twenty-three have given a hold rating and six have issued a buy rating to the company. The company has an average rating of “Hold” and an average price target of $35.83.

Image: Gap store at at Hillcrest Mall.

Gap Inc. has struggled mightily to regain its status as a go-to brand for basics, failing to gain shoppers’ attention as it’s pivoted to more high-fashion looks. The decline was driven mainly by the Banana Republic brand; the absence of the Piperlime e-commerce brand, which Gap shuttered during the first quarter of 2015; and the Gap brand, to a lesser extent, said Chief Financial Officer Sabrina Simmons, on the conference call. Gap includes GapKids, babyGap, GapMaternity, GapBody and assortments that are GapFit. Additionally, it offers handbags, shoes, jewelry, eyewear and personal care products, amongst others.

Overall, Gap Inc’s net sales declined 2.1%, driven by a weakness in comparable sales across the markets. It has Business-operated stores in America, the United Kingdom, Canada, France, Ireland, Japan, Italy, China and Hong Kong.