Latest news with #OldNavy
Fashion Network
a day ago
- Business
- Fashion Network
Gap shares slide as tariffs loom large over apparel maker's turnaround plans
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. Gap's forward price-to-earnings multiple (P/E), a common benchmark for valuing stocks, is 11.69, compared to a P/E ratio of 7.99 for Abercrombie & Fitch and 10.02 for American Eagle Outfitters, according to LSEG.
Fashion Network
a day ago
- Business
- Fashion Network
Gap shares slide as tariffs loom large over apparel maker's turnaround plans
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. Gap's forward price-to-earnings multiple (P/E), a common benchmark for valuing stocks, is 11.69, compared to a P/E ratio of 7.99 for Abercrombie & Fitch and 10.02 for American Eagle Outfitters, according to LSEG.
Fashion Network
2 days ago
- Business
- Fashion Network
Gap shares slide as tariffs loom large over apparel maker's turnaround plans
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. Gap's forward price-to-earnings multiple (P/E), a common benchmark for valuing stocks, is 11.69, compared to a P/E ratio of 7.99 for Abercrombie & Fitch and 10.02 for American Eagle Outfitters, according to LSEG.
Time of India
2 days 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
2 days ago
- Business
- Yahoo
Old Navy Returning to Herald Square's 34th Street
Old Navy isn't giving up on Manhattan's 34th Street. After losing its 34th Street site at 150 West 34th Street to Primark — a prime competitor — Old Navy has signed a lease to open at 50 West 34th Street, on the southeast corner of 34th and Broadway, catty corner to Macy's. The Old Navy store will occupy 55,000 square feet over two floors and is expected to open some time in 2026. More from WWD Laura Harrier and Zac Posen Celebrate Denim and Dandyism in Bold Gap Studio Suit That Challenges Binaries Around Masculinity and Femininity Henry Lehr's Magic Lives On: Mickey Drexler Helps Expand the Legacy Gap and Dôen Get Ready for Round Two of California Vintage-inspired Summer Collection 'New York is the most important retail and tourism market in the world, drawing over 60 million visitors annually and we are thrilled to announce Old Navy's new flagship is coming to such a prime location,' Haio Barbeito, Old Navy's president and chief executive officer, said in a statement Friday. Old Navy said the new store will be a 'next generation flagship' for the brand, which is a division of Gap Inc. 'As we look to modernize the Old Navy customer experience, this new location will enable us to deliver a fresh, immersive, digitally led experience that invites visitors and shoppers from around the world to come play with style,' Barbeito added. Old Navy and Primark are both family-oriented fashion retailers with low prices. The Dublin-based Primark has been steadily expanding in the U.S., and is also expected to open on 34th Street some time in 2026. It will be interesting to see which retailer opens first. For Primark, its 34th Street location will be its first in Manhattan. The store will occupy 75,000 square feet, including 54,000 square feet of selling space on four levels. The two retailers will be going head-to-head against Macy's, Target, H&M, Zara, Uniqlo, American Eagle and Urban Outfitters, among the thick concentration of retailers in and around Herald Square. 'There's a great competitor set in that area. It is certainly synonymous with retail,' Kevin Tulip, president of Primark in the U.S., told WWD in a previous interview. 'For a company like Primark that is building not just stores, but also its brand across the U.S., the ability to have a flagship there is an incredible moment for us.' The future Old Navy will be at the base of Herald Towers, which was built in 1912, serving as the Hotel McAlpin until its conversion to residential use in 1980. JEMB acquired the asset in 1999, renaming it Herald Towers. The 25-story, 1 million-square-foot mixed-use building offers 700 residential units and a ground floor retail component of more than 100,000 square feet. The Gap brand once operated one of its most productive, largest stores on the site. Morris Bailey, chairman of JEMB Realty, said in a statement that the long-term lease his firm signed with Old Navy is 'a testament to the longstanding relationship between JEMB and Gap Inc. We negotiated the original lease directly with Gap Inc.'s founders, Don and Doris Fisher, and are gratified to be working with the company's leadership again today.' The Old Navy deal comes on the heels of JEMB's 160,000-square-foot lease for Yeshiva University's health sciences campus at Herald Center, just west of where Old Navy will be. Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns
