Gap maintains forecast as 2Q profit falls

Its revenue decreased 2 percent to $3.9 billion.

Gap expects full-year earnings to be $2.75 to $2.80 per share.

Comparable sales at Old Navy increased 3 percent in the second quarter, and sales rose to $1.67 billion. The higher price target estimate is at $50 while the lower price estimates are fixed at $29. The stock presently has an average rating of “Hold” and a consensus price target of $35.94.

In other news, Director Jorge P. Montoya sold 7,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. Finally, Mizuho reaffirmed a “neutral” rating and set a $38.00 price target (down previously from $43.00) on shares of Gap in a research report on Tuesday, August 11th.

There are now thirty-four analysts that cover Gap Inc stock. Analysts expect $2.74 per share on average, according to FactSet. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The company will also eliminate 250 positions at its headquarters. In this transaction, 535 shares were sold at $39 per share.

The San Francisco, California-based company reported a quarterly profit of $219 million, or $0.52 per share, compared to $332 million, or $0.75 per share, in the year-ago period.

Hole is preserving its fiscal-year revenue forecast unchanged after the retailer confirmed it continued to wrestle within the second quarter, with gross sales rising at its Previous Navy shops whereas enterprise at Hole and Banana Republic shops weakened.

A recent analyst activity consisted of Wolfe Research who initiated their coverage on the stock with Underperform rating on August 17. On the date of report, the stock closed at $35.26. Additionally, it offers handbags, shoes, jewelry, eyewear and personal care products, among others. It has Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, China, and Italy.

The Gap, Inc. has lost 1.72% in the last five trading days and dropped 6.89% in the last 4 weeks. It operates Banana Republic, Gap and Old Navy stores throughout the Middle East Asia, Australia, Europe, Latin America and Africa.