Wells Fargo suggests Gap could cancel Old Navy spinoff
Gap Inc. GPS, +3.44% is scheduled to report third-quarter earnings after the closing bell on Thursday, and there could be one bit of news to come from the announcement: the company could cancel the Old Navy spin off, Wells Fargo says. Gap already announced third-quarter same-store sales declines at Old Navy, Banana Republic, and the namesake chain of stores, and cut its full-year guidance. Moreover, Art Peck, the company's chief executive, is leaving the company.
"Keep in mind, when discussing the dynamics that would potentially take [the spinoff off] the table this year, management has stated that a material miss to Old Navy's plan this fiscal year would force them to at least rethink the strategy," Wells Fargo says. Not only will the low-price retailer miss, but the cost to separate the company would be about $700 million to $800 million, or about $2 per share, analysts note.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Old Navy was once Gap's crown jewel, but a series of fashion misses and growing competition have caused it to stumbleOld Navy was frequently referred to as Gap Inc.'s saving grace in recent years. But now, the retailer is facing sales growth issues itself.
Baca lebih lajut »
Bolivia’s crisis exposes old racial, geographic dividesBolivia’s violent political crisis is exposing historical racial, ethnic and geographic divides many thought had been overcome after 14 years of rule by the Andean nation’s first indigenous president and a new “plurinational” constitution, analysts say.
Baca lebih lajut »
Why states are rushing to seal tens of millions of old criminal recordsA bipartisan movement to do so is under way across the country
Baca lebih lajut »
25-Year-Old Keeps Running After Liver Cancer Diagnosis Gave Him 3 Months to LiveA message of hope from Gabe Grunewald before her death has pushed the former college runner forward. ❤️
Baca lebih lajut »
Search for missing 5-year-old girl continues 2 months after she vanishedAuthorities are asking the public to 'remain vigilant,' and a reward of $52,000 is being offered for any information.
Baca lebih lajut »
A 9-year-old is collecting bottles to cover surgical costs for kids with cleft palatesAbigail Moen, 9, didn't know what a cleft lip or cleft palate was until she watched a commercial that brought tears to her eyes
Baca lebih lajut »