GAP Inc. (NYSE:GPS) stock has dropped 19.1% in 2018 as of early afternoon trading on October 10. The global apparel and accessories retailer may an interesting target for investors ahead of the busy holiday season. Retail sales typically heat up in the months of September and October before the peak season of November and December.
The company released its second-quarter results on August 23. The GAP reported second quarter diluted earnings per share of $0.76 compared to $0.68 in the prior year.
The company also reaffirmed its full-year guidance of earnings per share between $2.55 and $2.70. The strength of the Old Navy brand propelled the GAP to its seventh consecutive quarter of comparable sales growth.
Macy’s Inc. (NYSE:M) has dropped 9.3% over the past three months but is up 31% in 2018 so far. The company released its second-quarter results on August 15.
It reported adjusted earnings per diluted share of $0.70 compared to $0.46 in the prior year. Net sales fell 1.1% to $5.57 billion and for the first six months of 2018 net sales have increased by 1.1% to $11.1 billion.
Macy’s updated its full-year guidance and now expects total sales to range from flat to a 0.7% increase. It also projects adjusted earnings per share between $3.95 and $4.15.
The 2017 holiday season produced record numbers in online sales and some very positive numbers for regular retailers. It is difficult to see a repeat this year considering the increased pressure on consumers due to heightening trade tensions.
