17.80 +0.06 (0.34%)
After hours: 5:26PM EST
|Bid||17.80 x 1000|
|Ask||17.94 x 3200|
|Day's Range||17.10 - 17.90|
|52 Week Range||15.11 - 31.39|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||7.23|
|Earnings Date||Nov 21, 2019|
|Forward Dividend & Yield||0.97 (5.79%)|
|1y Target Est||16.80|
Retailers' performance over the last 2.5 months is a sign of positive market sentiment reentering the space. This sentiment will be tested next week when a wave of retail results hits the market.
Gap Inc. has opened a number of pop ups for the Hill City men's athletic gear brand and the Janie and Jack children's brand for the holiday season. Hill City will be available in seven Athleta stores on the West Coast, including on Fillmore St. in San Francisco and Old Mill District in Bend, Ore. And Janie and Jack will be available in two Banana Republic stores in New York and San Francisco. Gap shares are up 3.8% in Friday trading, but down 31% for the year to date. The S&P 500 index is up 24.2% for the period.
Gap Inc. today announced its board of directors authorized a fourth quarter fiscal year 2019 dividend of $0.2425 per share, payable on or after January 29, 2020 to shareholders of record at the close of business on January 8, 2020.
The Fisher family which launched the company 50 years ago, has had their net worth reduced by $1 billion over the past year as the company's stock continues to tumble in the face of weakening sales.
Gap (GPS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
`[Fundamentals] are deteriorating as competition in all categories remains stiff and pricing power is fleeting in all of [Gap's] core markets,' the analyst's note says.
Stock in both retailers has been on a tear this year. Cowen says they can continue to benefit as Americans grow more concerned about the economy and look to discount stores for their holiday shopping.
Softness in Gap's (GPS) namesake brand is likely to reflect in Q3 performance. Also, the company is grappling with dismal comps and strained margins.
It's already here. The sights. The sounds. The red cups. The holiday spending frenzy is once upon us -- whether we are ready for it or not. For many retail stocks, this is the most critical period all year. The don't call it Black Friday for nothing. However, the consumer spending environment continues to get even more cutthroat and hard to navigate.Thanks to online and omni-channel shopping, mobile commerce, one- and two-day shipping and a host of other reasons, many retail stocks are already suffering. The sector is quickly becoming a bifurcated industry -- with haves and have-nots fighting for survival. And the holiday season has only exacerbated this fight. Extra discounting, sales and "door-busters" make a tough environment even tougher.That means there are several retail stocks that aren't going to fair too well over the next few months. And in a few cases, they may not be around much longer.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFor investors, knowing which companies to avoid can be just as important as knowing which stocks to buy. * 7 Large-Cap Stocks to Give a Wide Berth And with that, here are five retail stocks that should get a big lump of coal this holiday season. J. C. Penney (JCP)Source: Supannee_Hickman / Shutterstock.com After Sear's bit the dust, it's easy to dunk on J. C. Penney (NYSE:JCP) as being the next major retail stock to meet its maker. Like Sear's, JCP is an old-fashioned department store in a world that no longer supports that style of retail concept. Big discounters like Walmart (NYSE:WMT) and e-commerce giants like Amazon (NASDAQ:AMZN) simply do it better. And in that, J. C. Penney has been suffering for years.The problem is, the suffering may finally be hitting a critical level.Debt at JCP remains an issue. As of last quarter, the retailer had roughly $3.6 billion in long-term debt on its balance sheet and about $1 billion in operating lease obligations. The problem is that JCP only has about $175 million in the bank and short-term investments. That's not exactly a great ratio of debt to cash. Nor is that great when sales continue to slide as e-commerce eats its lunch.Even worse is that sort of debt makes it harder for JCP to expand and update in a meaningful way. Sure, the firm has a new store concept, but it simply lacks the funds to roll it out to a variety of locations. Target (NYSE:TGT) spent more than $7 billion remodeling its stores to make them "hipper" and omni-channel friendly. JCP simply doesn't have that kind of cash or time.With JCP already talking to creditors about restructuring its debts, sales continuing to sleep and other rivals getting strong, it's only a matter of time until the firm has to pack up. For investors, JCP is easily a retail stock to avoid this holiday season. Wayfair (W)Source: Jonathan Weiss / Shutterstock.com It's not that Wayfair (NYSE:W) is a bad choice among retail stocks, it's just that a few issues may be hitting its torrid pace of growth. In this case, we're talking about costs across a variety of fronts.While its revenues have continued to climb, W stock has started to see its margins erode and various costs start to increase. As with JCP above, playing in the e-commerce world is an expensive game. Unfortunately for Wayfair, it's now being forced to shell out more to keep those revenues climbing.Last quarter, Wayfair was forced to spend 58.7% more on technology, infrastructure and other expenses related to gathering sales and getting them to consumers fast. Advertising spending jumped more than 12%. Meanwhile, the actual costs of its goods managed to jump as the trade war continues to slog on. All in all, the issues with costs have made U.S. margins a fat negative 3% for W.That doesn't instill much confidence heading into a slowing consumer environment. Add in the fact that other rivals continue to spend more in order to boost shipping, fulfillment and ordering ease, and you start to see a worrisome picture for Wayfair. No wonder why shares cratered the day it announced its results and poor outlook. * 7 Beverage Stocks to Stock Up On W stock isn't a bad retailer overall. It's just that the firm is dealing with some things outside its control. And because of that, it could be rocky for the firm going forward. Shares may still have more room to drop. Gap (GPS)Source: Alex Millauer / Shutterstock.com The middle isn't exactly a great place to be these days. Consumers either want high-end products or deep bargains. For retail stocks offering clothing like the Gap (NYSE:GPS), this is a tough pill to swallow.Sales continue to decline at Banana Republic and Gap as these brands struggle to find an audience.The bright spot for GPS stock has continued to be its bargain-brand Old Navy. These days, Old Navy accounts for roughly 50% of Gap's total sales -- with the other brands bringing in the rest -- around $7.9 billion from Old Navy against $8.7 billion for the other brands. But the pace of revenue growth at Old Navy has been brisk.To that end, GPS has decided to spin out Old Navy as a separate company. And that might seem like a good idea at first. The problem is, Gap really needs those assets to keep the ship moving. GPS is profitable at its other brands, but their slow decline is a spot for concern. Secondly, the hallmark of Gap's online operations has been the one-bag integration of all its brands. Picking up incremental sales and cross-selling has worked in its favor.What's worst is that even execs at Gap aren't sure of the spinoff plans. CEO Art Peck abruptly resigned from the company.With reduced guidance, slowing traffic and no real plans to get out of its funk, GPS is one retails stock that will continue to face some big issues. Those issues will take center stage during this holiday season. Chico's (CHS)Source: Kristi Blokhin / Shutterstock.com "OK Boomer" maybe be a rallying cry among America's youth, but it's also being directed towards a bunch of retail stocks. Take Chico's (NYSE:CHS) for example.Chico's runs a variety of stores -- including its namesake, Soma and White House Black Market. Generally, these brands fall under the higher-end and casual work clothing umbrellas. The problem for CHS is that this sort of style really isn't in focus anymore with millennial and Generation Z shoppers. With joggers now an office staple and bralettes replacing traditional intimate apparel, Chico's is facing a real problem. It doesn't have a core audience anymore. The Boomers are gone and the younger generations aren't buying.Last quarter alone, sales declined by 6.1%. This follows the trend of continued lower quarterly sales figures.Like many of the retailers on this list, CHS is realizing these lower sales at a time when debts and costs have risen. Thanks to its high-end nature, most of its store frontage is in upper-scale malls. Thanks to this, rent expenses are higher and produces more drag on its bottom line. No wonder why Chico's has started closing stores -- 53 have closed over the last three months. * These 7 Stocks to Buy Were Big Winners This Earnings Season In the end, Chico's is a brand without any buyers. With no real plans to turn the ship around, CHS stock could be a real drag this holiday season. Pennsylvania Real Estate Investment Trust (PEI)Source: jayk67 / Shutterstock.com If many retail stocks are suffering, then the owners of malls and shopping plazas must be really feeling the heat. Pennsylvania Real Estate Investment Trust (NYSE:PEI), also known as PREIT, is a prime example of the carnage being felt by the mall owners.PEI started out as a sprawling regional mall operator and as the recession hit, it took great steps to improve its portfolio of properties. That worked in raising its average sales per square foot and boosting quality of tenants. This worked great and the stock rebounded.And then the bottom dropped out for PREIT.This year, we've seen a variety of retailers such as Payless, Gymboree, Things Remembered and now Forever 21 file for bankruptcy. All of which are fodder for PREIT's style of malls. These closes are starting to once again hurt PEI's bottom line.For the third quarter, PREIT saw its same-store net operating income decline by 5.8% year over year. That decline doesn't exclude lease terminations. And with that, decline, funds from operations -- or the cash that the REIT has to deliver to investors as dividends -- dropped by 34% year-over-year. This follows a 44% year-over-year decline in FFO for the second quarter.PEI stock and its juicy 14% dividend is in trouble. This proves that the carnage in retail stocks is wide reaching.At the time of writing, Aaron Levitt had a long position in AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Large-Cap Stocks to Give a Wide Berth * 7 Potential New Stocks That Should Not Go Public * 5 Chinese Stocks to Buy Surging Higher The post 5 Retail Stocks Getting Nothing but Coal This Holiday Season appeared first on InvestorPlace.
While Rachel Zoe has been able to successfully leverage her name into a handful of businesses, she isn’t so optimistic about the fashion industry at large.
News of the chief executive’s departure was coupled with the reporting of a decline in third-quarter sales and a downwardly revised financial outlook, which together could cloak the planned spinoff of the Old Navy chain in new uncertainty.
U.S. stocks inched up to close at fresh record highs Friday even through President Trump said the administration had yet to agree to roll back import duties on China as part of a “phase-one” trade deal.
Stocks ended slightly higher, shrugging off earlier losses after President Donald Trump wavered over whether tariffs would be rolled back as part of a partial deal with China.
MKM Partners Roxanne Meyer maintains a Neutral rating on Gap's stock with a fair value estimate of $18. UBS analyst Jay Sole maintains at Neutral, $18 price target. Peck's departure announcement was "surprising" as it coincides with the pending spin-off of the Old Navy brand, Meyer said.
Gap Inc (NYSE: GPS) tanked Friday after the company disappointed the market a weak earnings preannouncement, cut its full-year guidance and announced the surprise departure of its CEO. On Friday morning, Benzinga Pro subscribers received 17 option alerts related to unusually large trades of Gap options. Of the 17 total large Gap option trades Wednesday morning, 14 involved calls purchased at or near the ask or puts sold at or near the bid — trades typically seen as bullish.
(Bloomberg) -- No longer the khaki king of the ’90s, Gap Inc. has been in need of an overhaul for a very long time -- and Art Peck won’t be the one to deliver it after all.Gap fired its chief executive officer late Thursday after his turnaround efforts failed to reignite sales growth, with disappointing third-quarter performance sending shares plummeting in late trading. The apparel company, which includes the namesake Gap brand, Athleta and Banana Republic, brought back a member of the founding family to lead while it figures out a longer-term plan.The shares fell as much as 5% in New York on Friday. Through Thursday’s close, they had dropped about 30% for the year so far.Peck’s termination comes after years of struggles at the company. Although the retailer made several public missteps in recent years -- like making blazers without armholes big enough for an average woman and jumping on the regrettable Normcore bandwagon -- many of its problem areas aren’t even unique in today’s difficult retail environment: relying on routine 50% discounts and maintaining a major presence in declining American malls.“It was probably the most overdue management change that we’ve seen in a while,” said Stacey Widlitz, president of SW Retail Advisors. “There comes a point and time when you can’t sit and do the same thing over and over again.”Sales SlumpAfter a brief transition, Peck will exit the president and CEO role and vacate his post on the retailer’s board. Robert Fisher, the company’s current nonexecutive chairman and son of Gap co-founders Don and Doris, will step in as president and CEO on an interim basis.The company declined to comment beyond the press release announcing Peck’s departure.The company said in a statement that companywide comparable sales appeared to be down 4% in the third quarter, which ended Nov. 2, with that measure falling 7% at its namesake brand. That’s even worse than analysts surveyed by Consensus Metrix had been expecting.“This was a challenging quarter, as macro impacts and slower traffic further pressured results that have been hampered by product and operating challenges across key brands,” Teri List-Stoll, executive vice president and chief financial officer, said in the statement announcing Peck’s exit.The company needs to find a way to sell more goods at full price and figure out a way to capture a new, younger consumer base, Dana Telsey, CEO of Telsey Advisory Group, said on Bloomberg Television.“If you don’t have the right product, you aren’t able to sell goods at full price,” Telsey said. “There’s work to be done on the core product.”Peck will be eligible for severance pay based on his termination without cause, the company said in a filing. He’ll get $2.33 million severance and a payout of stock awards worth several million dollars, filings show. He’ll also be entitled to health benefits and financial counseling for 18 months.Years of StrugglesGap, founded in 1969 in San Francisco, rose to prominence as a denim emporium selling jeans from Levi Strauss & Co., another Bay Area institution. It helped pioneer the vertical integration of retail and started producing its own branded goods. By the 1990s, it had transformed into a fashion juggernaut as it jumped on the khaki-pants trend and built up robust secondary brands in Banana Republic and Old Navy.But struggles started brewing in the middle of the next decade, from declining mall traffic to operational issues. One of the most famous missteps came in 2010 when the company unveiled a new Gap logo. Some shoppers complained, so it ditched it just a week later.To try to turn things around, it turned to new CEO Glenn Murphy in 2007, who came from a drugstore chain. He closed a slew of U.S. stores, while expanding overseas and invested in the supply chain. But the recession hit shortly after and thwarted momentum by turning a generation of shoppers onto discounters. Low-priced fast-fashion chains, like Zara and Forever 21, captured the attention of millennials, pushing Gap further out of favor. After a decade at the company in various roles, Peck replaced Murphy in early 2015 as part of a succession plan.Peck, a former consultant, tried shaking up leadership and experimenting. But sales kept declining and the business declined to the point that the company decided to spin off Old Navy, its best-performing division and the motor for the company’s sales in recent years. The company didn’t even attach an official name to its new venture when it announced the separation in February -- instead referring to it as NewCo.Old Navy, which had anchored its parent company for years, was given to Sonia Syngal to shepherd. Peck was left saddled with Banana Republic, mired in a sales slump, and the aging namesake Gap brand. He’s tried to position the Athleta chain -- a Lululemon competitor -- as the bright spot within the portfolio he would run, but it hasn’t been enough to turn things around.Holiday Season“Gap is a company that clearly needed a change. Peck wasn’t moving the needle, except moving it backwards,” said Craig Johnson, president of retail researcher firm Customer Growth Partners. “It’s still a company that has great brand equity, but its residual brand equity that needs to be updated.”What Bloomberg Intelligence Says:“Gap’s next CEO will need to find a better way to connect with younger shoppers through product, marketing and digital.”Poonam Goyal, retail analystClick here to read the research.Still, while sales have been poor, the market didn’t see his departure coming, at least so close to the critical holiday period. Peck was well established as the face of Gap. In September, he and Old Navy chief Syngal hosted an event for analysts about the planned spinoff and their vision for the companies’ future. Peck spoke at length about how Gap had to broaden its appeal, including with larger sizes and more diversity.Despite the holidays being a make-or-break time in retail, Peck’s departure might actually be a good turning point for the company, Widlitz said, adding that merchandise and products have already been decided for this season.“It leaves the door open for ‘no matter how bad December is, let’s think about the future,’” she said.(Updates with shares trading.)\--With assistance from Anders Melin.To contact the reporters on this story: Matt Townsend in New York at email@example.com;Jordyn Holman in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Anne Riley Moffat at email@example.com, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
J.P. Morgan has been one of the more aggressive Wall Street shops on stocks for some time, and it is reiterating its overweight call on equities and commodities and underweight on bonds. What’s new is that it’s reversing an overweight in gold to a small underweight, as well as shifting part of its underweight from credit to government bonds. “We maintain a significant and incrementally larger tilt in our model portfolio towards risky assets, based on signs of a cyclical recovery, easing geopolitical tensions, synchronized monetary easing, and defensive investor positioning across asset classes,” said its strategy team, led by Marko Kolanovic.
Gap struggled Friday and dropped as much as 5% after the company reported dismal third-quarter performance and the departure of its CEO Art Peck. Peck’s efforts to reignite sales growth at the company failed, with comparable sales down 4% in the third-quarter, worse than analysts’ expectations.
Gap CEO Art Peck says he's leaving the retailer as Sears announces it is closing another 96 stores. Yahoo Finance's Julie Hyman, Brian Cheung and Scott Gamm talk about the struggles these retailers face.
Gap’s stock has crashed 55% since Peck was announced as CEO back in October 2014. Yahoo Finance's Brian Sozzi and Alexis Christoforous discuss with JJK Research’s Specialty Retail Consultant Janet Kloppenburg what the breaking point was for the retailer company.