NEW YORK — Gap Inc. got an early Christmas gift: an upgrade from Gerard Klauer Mattison.
GKM analyst John Morris upgraded the San Francisco-based specialty retailer Monday to "buy" from "neutral" and raised his earnings-per-share estimates for the fourth quarter to 16 cents from 14 cents and for the full year to 42 cents from 40 cents.
Overall, according to First Call, analysts are expecting earnings of 12 cents versus a loss of 4 cents in the year-ago quarter.
Gap shares moved up 10 cents, or 0.6 percent, to close at $15.99 in New York Stock Exchange trading Monday.
"We think the merchandising at Gap adult shows marked signs of improvement into the heart of the holiday season," he wrote in research notes, adding he expects this to continue through the fourth quarter and into next year.
He also said he anticipates Gap to report better-than-expected same-store sales results for November, which would mark the second month of improved comparable-store sales.
In October, Gap ended 30 straight months of negative comps by reporting a positive 11 percent comp for the month versus negative 6 percent in October 2001.
"Until recently, the core of Gap’s troubles lay with inconsistent and misdirected merchandising and marketing that did not fit with the essence of the brand," Morris noted. "We now believe that an improvement in the quality and styling offered across all divisions is luring core customers back to the stores and that this is sustainable in the near future."
Todd Slater, an analyst at Lazard Frères, noted that the busiest two stores in the mall appeared to be the various Gap brands — Gap, Old Navy and Banana Republic — and Aeropostale. "Gap was converting more than its fair share of traffic due to more compelling product assortments backed up by effective [and understandable] TV and direct-mail marketing. The merchandise was especially compelling on the women’s side, with sweaters of all stripes [literally] flying off the shelves," he said in a note.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia