Gap (NYSE:GPS) is a San Fransisco-based apparel retail company. The company has been a behemoth in the apparel retail space for decades, but the era of online shopping has brought new challenges to the forefront. That has spurred the company to seek out a bold new vision for its brand.
Zac Posen, the American fashion designer known for his red-carpet designs, was hired as creative director of Gap and chief creative officer of Old Navy in early February 2024. The company hopes to revitalize its brands with a bold new director. Posen is the first executive-level creative lead for Gap since Patrick Robinson, another top fashion designer, left the company in 2011.
Investors can expect to see Gap’s fourth quarter (Q4) and full year fiscal 2023 earnings in the first half of March. The company released its Q3 FY2023 earnings on November 16, 2023. Gap reported net sales of $3.8 billion in Q3 – down 7% compared to the third quarter of fiscal 2022. Moreover, store sales dropped 6% year-over-year and online sales fell 8%, while representing 38% of total net sales.
The company reported adjusted net income of $221 million and adjusted earnings per share of $0.59. Gap continues to project gross margin expansion for the full year in fiscal 2023. It expects adjusted operating expenses of approximately $1.4 billion in Q4 2023 and $5.15 billion for the full year.
Shares of Gap have dropped 8.6% month-over-month as of close on Tuesday, February 6. Meanwhile, the stock is still up 36% in the year-over-year period.
