Clothing and accessories retailer GAP (NYSE:GPS) slashed 59 basis points from the Fund's return, as its stock fell 10.8% from our average cost of $20.14 to $17.97. Sales at GAP's comparable stores experienced their biggest declines in three years, due to cold and wet weather and poor merchandising decisions. A dramatic restructuring of the business is underway, as management plans to close hundreds of underperforming stores and spin off Old Navy into an independent company to unlock shareholder value.
From Jerome Dodson (Trades, Portfolio)'s second-quarter 2019 Endeavor Fund shareholder letter.
This article first appeared on GuruFocus.
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- GPS 15-Year Financial Data
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- Peter Lynch Chart of GPS