Net sales declined 9% last month, compared to a 6% fall in November of 2014. Same-store sales decreased 8% this past month, compared to a 6% drop last year.
Gap's Banana Republic and Old Navy brands' sales both tumbled in November, down 19% and 9% respectively. Last year, the brands' November sales had climbed 2% and 18%, respectively.
"With much of the holiday season still ahead, our teams remain focused on strong execution and delivering compelling experiences for customers across our brands," CFO Sabrina Simmons said in a statement.
Gap is an apparel retail company based in San Francisco.
Separately, TheStreet Ratings team rates GAP INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate GAP INC (GPS) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The debt-to-equity ratio is somewhat low, currently at 0.67, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
- 37.33% is the gross profit margin for GAP INC which we consider to be strong. Regardless of GPS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 6.42% trails the industry average.
- Net operating cash flow has decreased to $92.00 million or 22.03% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Specialty Retail industry average. The net income has significantly decreased by 29.3% when compared to the same quarter one year ago, falling from $351.00 million to $248.00 million.
- You can view the full analysis from the report here: GPS