The Clap👏
Gap shares (NYSE: GPS) jumped as high as 18% in extended trading after the retail giant announced an improved profits forecast.
Challenges ahead😬
Gap shares the same challenges as other retailers including American Eagle (NYSE: AEO), Abercrombie & Fitch (NYSE: ANF), Urban Outfitters (NASDAQ: URBN), & Victoria’s Secret (NYSE: VSCO). They all face sky-high inflation, global uncertainty due to Russia’s invasion of Ukraine, & supply chain disruption (although Gap expects supply chain issues to get better soon).
GPS’ performance📉
Gap’s market value decreased by more than 40% over the past year. Investors are hoping American consumers’ shopping activity picks up sooner rather than later.
