Pursuits
Gap Shares Plunge After Comeback Falters, Inventory Piles Up
- March sales miss analysts' estimates as traffic remains slow
- CEO Art Peck has promised a turnaround starting this season
Pedestrians walk past The Gap Inc. store at the Third Street Promenade in Santa Monica, Calif. on March 22.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Gap Inc. shares fell as much as 12 percent after the struggling apparel chain posted disappointing sales and said that inventory is piling up at stores, sparking concern that its comeback effort has stalled.
Same-store sales fell 6 percent last month, the San Francisco-based company said on Thursday. Analysts had projected a 5 percent decline, according to Retail Metrics. Gap’s Banana Republic division performed especially badly, with same-store sales plunging 14 percent.