Finance

Gap cuts quarterly sales forecast on challenges at Old Navy; brand head departs

The Hole emblem is seen on the entrance of the corporate’s retailer in Paris, France, July 1, 2021. REUTERS/Sarah Meyssonnier

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April 21 (Reuters) – Hole Inc (GPS.N) slashed its forecast for quarterly gross sales on Thursday, blaming execution challenges at its Outdated Navy model and “macro-economic dynamics”, sending shares of the retailer down 12% in prolonged buying and selling.

Hole additionally stated the top of its Outdated Navy model, Nancy Inexperienced, was leaving the corporate this week and the corporate’s Chief Government Officer Sonia Syngal would lead the group till a successor will get employed.

A number of attire chains, together with Hole, have struggled to maintain up with rising demand and managing their inventories as provide chain snags delay shipments.

Hole now expects first-quarter gross sales to say no within the low to mid-teens proportion vary from its prior steering of mid to high-single-digit year-over-year declines.

The retailer, which is able to report first-quarter outcomes on Might 26, stated it needed to take an “aggressive method” to balancing stock that led to elevated advertising and marketing promotions, particularly at Outdated Navy.

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Reporting by Aishwarya Venugopal in Bengaluru; Modifying by Krishna Chandra Eluri

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