Gap Inc. shares slide

Gap Inc. shares took a deep plunge on Friday, dropping 0.58 percent to 17 dollars and 1 cent. Friday was a mixed day for trading, with the S&P 500 Index rising 0.52 percent and the Dow Jones Industrial Average declining 0.06 percent. Gap had three consecutive days of losses, closing 20 dollars and 62 cents below its 52-week high of 37 dollars and 63 cents.

Prior to Friday’s trading, shares of Gap had lost 7.81 percent over the past month. In Gap’s next earnings release, they are expected to post earnings losses of 12 cents per share. This would mean a year-over-year decline of 142.86 percent.

Barclays analyst Adrienne Yih said deeper promotions at Gap Inc.’s Old Navy, Gap and Athleta brands and households with incomes under 75,000 dollars hurt by inflation are causing Gap losses in sales. Barclays also noted that Gap Inc. this year won’t benefit from last year’s government stimulus checks, which put disposable income in the hands of those not dependent on them to pay for essentials.

Gap Inc. is trying to take a more wholesale approach to improve its bottom line. The company is trying to become less dependent on stores after closing 81 stores globally. They have launched Gap Home, which is available on Walmart.com, and has expanded to include furniture and rugs.