Latest news with #Gap
Time of India
11 hours ago
- Business
- Time of India
Gap shares slide as tariffs loom large over apparel maker's turnaround plans
HighlightsGap Inc. shares fell 20% in early trading after the company warned that U.S. tariffs would impact this year's profit, estimating tariff-related costs between $250 million and $300 million. Under the leadership of Chief Executive Officer Richard Dickson, Gap Inc. plans to double the use of U.S.-grown cotton by 2026 and aims to diversify its supplier footprint to reduce reliance on any single country. Despite the tariff concerns, Gap Inc. reaffirmed its annual forecasts, excluding tariff-related costs, and reported first-quarter sales and profit that exceeded Wall Street estimates. By Savyata Mishra Gap shares fell 20% in early trading on Friday after the Old Navy owner warned that U.S. tariffs would squeeze this year's profit, even as the apparel maker aims to soften the blow by diversifying its supply chain and investing in U.S. cotton. The company reaffirmed its annual forecasts that did not include tariff-related costs but flagged expenses of up to $300 million, which analysts said would weigh on Gap's margins through the second half of the year and into 2026. Shares of the company, which owns brands such as Banana Republic and ON, were trading at $22.44. The stock has surged 30% so far this month, as investors focused on the firm's efforts to improve product innovation and store operations. At least three brokerages trimmed price targets on the stock, with Jefferies cutting it by the most, to $26 from $29. "Banana Republic and Athleta likely need much reinvestment to drive consistent positive comparable sales and margin expansion, in our view," UBS analyst Jay Sole said. President Donald Trump's trade policy has threatened to upend supply chains and push up prices for everyday essentials. Some retailers including Best Buy have accounted for the tariffs and a few others have pulled their forecasts. However, firms like Gap have excluded the impact from their outlook, citing an ever evolving trade policy. Under the leadership of Richard Dickson, who took helm in 2023, Gap laid out plans to double the use of America-grown cotton by 2026, with executives on a post-earnings call saying that investing in the U.S., its biggest market, remains a key priority. It has been diversifying its supplier footprint for several years, and currently has a less than 10% exposure to China. The region was one of its top manufacturing hubs, followed by Vietnam and Indonesia. It aims for no country to account for more than 25% by the end of 2026. The company topped Wall Street estimates first-quarter sales and profit helped by full-price selling in its namesake and Old Navy brands.
Yahoo
18 hours ago
- Business
- Yahoo
Gap's Earnings to be Weighed Down Amid Larger-Than-Expected Tariff Headwinds, UBS Says
Gap's (GAP) earnings through 2027 are likely to take a hit amid larger-than-projected headwinds from Sign in to access your portfolio
Epoch Times
a day ago
- Business
- Epoch Times
Gap Tops Earnings Estimates, Aims to Double American Cotton Use in 2026
Gap Inc. reported first-quarter results that beat market estimates as it continued to gain market share, thanks to the popularity of its Gap and Old Navy brands. In addition, the company anticipates a slight shortfall due to tariffs, as it plans to invest more in the United States and double its vendor sourcing of American-grown cotton in 2026. On May 29, the San Francisco-based specialty apparel company, with a portfolio of brands including Old Navy, Gap, Banana Republic, and Athleta,
USA Today
a day ago
- Business
- USA Today
Shinola ends its ride: The Detroit brand quietly retires its bicycle collection
Shinola ends its ride: The Detroit brand quietly retires its bicycle collection Show Caption Hide Caption Gap shares tumble as retailer warns of tariff toll on profits Gap shares fell 20% in early trading on Friday after the Old Navy owner warned that U.S. tariffs would squeeze this year's profit, even as the apparel maker aims to soften the blow by diversifying its supply chain and investing in U.S. cotton. The last of the stock of bikes sold out in March 2025. Shinola isn't ruling out that bikes could be back in the future. Detroit-based Shinola has stopped manufacturing and selling bicycles, which were once a core part of the brand's offerings. The last of the stock sold out in March 2025, a Shinola representative confirmed, and there aren't plans to restock at this time. "Shinola bikes have been a part of our brand DNA for years, and helped us make our mark in the design space," Shinola said in an emailed statement. "At this time, Shinola is committed to doubling down on our watch assortment," the company said, pointing to its recent partnership with the J Dilla estate to create limited-edition watches. When Shinola was founded in 2011 in Detroit, bicycles, which retailed for as much as $3,000, were one of the brand's core products, along with watches and leather goods. Later, it expanded with other products such as headphones and opened a hotel in downtown Detroit in 2019. Nike announces new price hikes: See what other retailers have done since Trump tariffs Four years ago during the pandemic, a Shinola executive told the Detroit Free Press that the company saw an uptick in sales in bicycles, and that Shinola was refocusing on core products as it looked ahead to the brand's next decade. The brand also continues to expand its hospitality footprint with the announcement of a second Shinola Hotel in downtown Indianapolis. However, Shinola said it isn't closing the door on bikes completely. "Whilst we might not have Shinola bikes currently, it doesn't mean they might not be back in the future, as there are a lot of exciting developments to come in 2025 and beyond," Shinola said in the statement. Contact Adrienne Roberts: amroberts@
Los Angeles Times
a day ago
- Business
- Los Angeles Times
Wall Street glides to the end of its best month since 2023
NEW YORK — Wall Street closed its winning week and month with a quiet Friday following a mixed set of profit reports from Gap, Ulta Beauty and other companies navigating the challenges created by President Donald Trump's on-and-off tariffs. The Standard & Poor's 500 finished the day nearly unchanged after edging down by less than 0.1%. The Dow Jones Industrial Average added 54 points, or 0.1%, and the Nasdaq composite slipped 0.3%. Gap weighed on the market even though the retailer reported stronger profit and revenue for the latest quarter than analysts expected. The company behind Banana Republic and Old Navy fell 20.2% after saying tariffs on imports from China and other countries could add up to $300 million to its costs this fiscal year. It has strategies set to mitigate up to half of that before it hits its profits. This week and month on Wall Street have been dominated by questions about what will happen with Trump's tariffs, which investors worry could grind the economy into a recession, slash companies' profits and layer even more challenges on households already sick of inflation. Hopes had largely been rising that the worst of such worries had passed, which in turn sent stocks rallying, after Trump paused his tariffs on both China and the European Union. A U.S. court then on Wednesday blocked many of Trump's sweeping tariffs. It all sent the S&P 500 in May to its first winning month in four and its best since November. But the tariffs remain in place for now while the White House appeals the ruling by the U.S. Court of International Trade, and the ultimate outcome is still uncertain. Trump also briefly shook markets shortly before Wall Street opened for trading Friday, when he accused China of not living up to its end of the agreement that paused their tariffs against each other. 'So much for being Mr. NICE GUY!' Trump said on his Truth Social platform. The impact was limited though, and futures for U.S. stock indexes quickly pared their losses. Since Wednesday's ruling, analysts and investors have been saying Trump and his administration would likely look for new avenues to impose tariffs on trading partners. Trump has said he's using tariffs to bring manufacturing jobs back to the United States and that U.S. households and businesses may feel some pain in the process. Friday's most influential losses came from several Big Tech stocks. Nvidia fell 2.9% to give back some of its gain from earlier in the week after it topped analysts' expectations for profit in the latest quarter. It was the single heaviest weight by far on the S&P 500. On the winning side of Wall Street was Ulta Beauty, which rose 11.8% after the retailer reported stronger sales and profit than analysts forecast. It also raised the top end of its forecasted range for revenue this fiscal year even though CEO Kecia Steelman called the operating environment 'fluid.' Costco climbed 3.1% after the retailer's results and revenue for the latest quarter edged past analysts' expectations. Red Robin Gourmet Burger soared 62.9% after reporting a profit for the latest quarter, when analysts expected a loss. Shares of SharpLink Gaming fell 3.2% to trim their gain for the week to a still-whopping 1,041.4% after the marketing company said it would raise $425 million to buy the cryptocurrency on the Ethereum blockchain. The company delivers leads to U.S. sportsbooks and global casino companies, and it has been expanding into the global crypto gaming market. All told, the S&P 500 edged down 0.48 to 5,911.69 points. The Dow Jones Industrial Average rose 54.34 to 42,270.07, and the Nasdaq composite slipped 62.11 to 19,113.77. In the bond market, Treasury yields eased after a report showed that the measure of inflation that the Federal Reserve likes to use was slightly lower in April than economists expected. A separate report from the University of Michigan said that sentiment among U.S. consumers was better in May than economists expected. Sentiment improved in the back half of the month after Trump paused many of his tariffs on China. 'Overall, consumers see the outlook for the economy as no worse than last month, but they remained quite worried about the future,' according to Survey of Consumers Director Joanne Hsu. The yield on the 10-year Treasury eased to 4.39% from 4.43% late Thursday. The two-year Treasury yield, which more closely tracks expectations for what the Fed will do with overnight interest rates, slipped to 3.90% from 3.92%. The Fed has left its benchmark borrowing rate steady so far this year after cutting it at the end of 2024 to give the economy more breathing room. Fed officials have said they want to wait longer to see how tariffs will affect inflation and the economy before making their next move. While lower interest rates can give the economy a boost, they can also fan inflation higher. In stock markets abroad, European indexes were mixed, while Asian markets fell. Choe writes for the Associated Press.
