The Largest Clothing Brand Retailer In The United States, Cape Group Continues To Regain Momentum.

According to the world clothing and shoe net, the largest clothing brand retailer Gap Inc. (NYSE:GPS) in the United States continued to regain momentum. In the two quarter, the group's earnings per share were recorded at $0.68, up 119% from 0.31 dollars a year earlier, and 0.58 dollars after adjustment EPS, far exceeding Thomson Reuters I/B/E/S and Zacks expected 0.52 dollars.

Under the expected EPS stimulus, the shares of Gap Inc. Cape group rose sharply Thursday after 5.51% to $23.93.

The two quarter

The increase from $125 million to $271 million was mainly due to restructuring of the group last year. After adjustment, the net profit in the two quarter was $231 million, a 2.5% decrease compared with 238 million US dollars in the two quarter of last year.

Group CEO Art Peck Peck was satisfied with the same store sales growth for three consecutive quarters, and said the group's investment in products, customer experience and brand equity was rewarded, and according to the first half of the year, the annual EPS forecast was raised.

Gap Inc. Cape group now expects EPS to be US $2.12-2.20 for the whole year, adjusted to US $2.02-210, which was expected to be US $1.95-2.05.

As of the two quarter of July 29th, the sales of Gap Inc. Cape Group recorded an increase of 1%, while the two quarter of the 2016 fiscal year dropped 2%, of which Old Navy, the Old Navy brand sales in the same store improved significantly, an increase of 5%. The same period last year was only flat, which was higher than the 3.1% growth expected by the market. In the past 10 quarters, there were 7 positive performances. The group's same name, the same name, the sales of the same brand, the same store sales showed a 1% decline; while the Banana Republic banana sale in the same store was 5%, though the worst, but the decline was also improved compared with the same period last year.

Due to the negative impact of the exchange rate, the Gap Inc. Cape group's two quarter revenue fell by 1.4%, from 3 billion 851 million US dollars to 3 billion 799 million US dollars, and Gap Inc. Inc. said the exchange rate had an impact of about $37 million on the quarter's sales.

Thomson Reuters I/B/E/S is expected to be $3 billion 770 million.

In addition to continuous sales improvement in the same store, the gross profit margin of Gap Inc. Inc. in the two quarter has been recorded for four consecutive quarters of improvement, with a record period of 38.9%, an increase of 160 basis points compared with the same period last year, excluding the 40 basis points of the reorganization adjustment in the same period last year, and 120 base points improvement.

In the unfavorable environment of frequent bankruptcies and closes, Art Peck continued to release the improvement signals. Art Peck praised the group's brand and channel diversification at the earnings meeting, which made the group improve in the downturn of the department stores.

Art Peck, although it is in North America.

Continuous reduction of sales area, but the group's brand impact has not been lost, but it has strategic significance, so that the real estate risk to achieve a balance, at the same time effective management of inventory.

In the two quarter, the group's US market revenue recorded an increase of 2.2% from $2 billion 972 million to $3 billion 38 million. At present, the group's cowboy business accounts for 8% of the market share, sports business accounts for 3.5%, and occupies 10% market share in the children and infant clothing market.

At the same time, Art Peck also emphasized the group's push forward in the supply chain. At present, the group's new time has improved to 8 weeks or even shorter.

Since its promotion to CEO in February 1, 2015, Art Peck has closed hundreds of stores and fired creative directors with design power, relying on market data analysis to grasp the trend and demand trends to enhance product quality and aesthetics, helping the group place the right products at the right time at the right time.

He also improved the supply chain, maintained low inventories and adopted cost cutting measures.

In terms of products, Art Peck also goes further and further in learning Zara mode, including product update and new speed.

At the end of last year, Art Peck revealed that the group had been able to reduce most of the categories from development to shelf life from 10 months to 8-10 weeks, allowing the group to manage inventory in different modes.

The latest figures show that the group has gone a step further in terms of supply speed.

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