Gap Pulls Full-Year Outlook on CEO Search and Economic Uncertainty
- Retailer pulls previous guidance on uncertainty, CEO search
- Sales trends have improved in July and August, company says
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Gap Inc.’s shares rose in late trading as investors took solace in higher-than-expected earnings and improving sales trends even as the chain withdrew its full-year projections.
The apparel retailer said macroeconomic uncertainty and its ongoing search for a new executive officer sparked the decision to pull the guidance. Still, the company saw “an improvement in sales trends in July and into August consistent with many other retailers.” Gap expects to reduce its elevated inventory levels -- which have contributed to its recent troubles -- by the end of fiscal 2022 from a year earlier.