Forbes - Markets
Gap Inc's Premium Brands Aren't Moving Fast Enough
Even in its August sales results, released earlier this month, the company’s namesake brand reported a -8% comparable sales change and Banana Republic reported -11% change. However, Gap Inc’s overall comparable sales fell just 2%, thanks to the significant positive contribution from Old Navy. While the retailer attributed much of the decline to currency exchange rate fluctuations and one week shift in Labor day, underlying weakness in premium brands cannot be ignored. The significant decline in comparable sales for Gap and Banana Republic are indicative of a broader change in the industry that has troubled Gap Inc.
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