Gap Has 4 Brands and Only One Is Really Growing. Gap Stock Now Depends on It.
Friday's double-digit pop celebrated a quarter in which three of four brands shrank or stalled. The one that didn't is carrying everything.
Overview
Gap Inc. (NYSE:GAP) shares jumped about 13% Friday, the day after the apparel retailer reported fiscal second-quarter results and nudged its full-year profit outlook higher. The market liked the margins, the raised guidance, and news of a new leader for the company's biggest brand.
But the quarter was more lopsided than a pop like that suggests. Gap Inc. runs four brands (Old Navy, Gap, Banana Republic, and Athleta), and in the fiscal second quarter, exactly one of them was growing in any meaningful way. Total company net sales fell 2% year over year to $3.7 billion.
Details
The brand that was growing happens to share its name with the stock. Here's a closer look at the quarter, brand by brand.
Source
Originally published at www.fool.com.