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.
@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
@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)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@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)