Gap's Old Navy Performance was Better than Feared, Analysts Say

Dow Jones
Aug 29

1414 ET - Investors are celebrating better-than-feared trends for Old Navy, Gap's biggest brand, after the parent company's latest quarterly results, TD Cowen says in a note. Heading into the print, investors had grown increasingly pessimistic over concerns that weakness at Old Navy would continue through the second half of the year, analysts Jonna Kim and Oliver Chen say. Those worries didn't materialize, with management cutting guidance by less than expected and noting improving trends in August, they say. The company expects Old Navy to get a boost in the second half of the year from new leadership, improvements to product and pricing as well as refined marketing initiatives, the analysts say. Still, further upside for Gap's stock will likely depend on whether Old Navy can show sustained improvement in traffic and comparable sales, they say. Gap surges 13%.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10