Gap, Ross Surge as Discount Format Still Luring in Shoppers

  • Discount chains thriving as larger competitors struggle
  • Both Gap, Ross raise earnings forecast for full-year profit

The Retail Winners and Losers of the Earnings Season

Gap Inc. and Ross Stores Inc. are showing that growth is possible for apparel retailers. You just have to offer cut-rate prices.

Both apparel companies saw their shares spike on Friday after posting comparable sales that exceeded analyst estimates. Gap relied on its budget-minded Old Navy chain for growth. Ross, meanwhile, used its off-price strategy to outperformBloomberg Terminal expectations despite the hurricanes that battered Texas and Florida.