NEW YORK (TheStreet) -- The Gap (GPS) shares are down -5.5% to $44 on Friday after the retailer announced a 2% drop in August same store sales, short of analysts expectations of a 1.6% increase.
The Gap stores, which include Old Navy and Banana Republic among others, reported a 2% decline in online sales and sales from stores open for at least a year, while sales at its name sake store fell 6% during the month.
Today's performance follows a -6% decline the stock experienced in after-hours trading yesterday after the release of the August sales results.
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TheStreet Ratings team rates GAP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GAP INC (GPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: