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.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)