(Boursier.com) — gap , an American clothing retailer, dropped 7% before the stock market on Wall Street. The group has just published quarterly accounts without relief and expects a continued decline in sales, with the impact of inflation. Gap will therefore reshuffle its management teams by eliminating certain layers… For its fourth quarter, the group recorded a net loss of 273 million dollars, 75 cents per share, against a loss of 16 million dollars a year before. Revenue fell 6% to $4.24 billion. Same-store sales declined 5%. Analysts polled by FactSet had expected Gap to post an adjusted loss of 46 cents a share, on revenue of $4.36 billion and a 3.1% decline in same-store sales.
gap removes the role of Chief Growth Officer, held by Asheesh Saksena. Sheila Peters, Chief People Officer at Gap, will also leave at the end of the year. The group is set to choose a new chief executive, following the resignation of Sonia Syngal in July. The firm will remove “layers of management” and take other steps to streamline operations, which is expected to save $300 million. Gap estimates that its first quarter sales could fall “in the mid-single digit range” year-over-year, compared to the corresponding period a year earlier. For the full year, sales could decline in the low to mid-single digit range. Analysts polled by FactSet expected growth for the full year… “While we are better positioned heading into fiscal 2023, we continue to take a cautious approach to planning and business management in light of the continued uncertainty in the consumer and macro environment,” said Chief Financial Officer Katrina O’Connell.
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