Why Did Gap Shares Tumble In After Hours Trading?

Gap’s July revenue didn’t impress Wall Street on Monday. Shares fell in after hours trading after the company reported July sales of $1.10 billion, which was down from $1.12 billion a year ago.

Comparable-store sales for the clothing retailer fell 4% in July vs. a 3% drop for the year-ago period. By brand, same-store sales were down 4% at Gap vs. a 7% drop a year ago, down 14% at Banana Republic vs. a 10% decline a year ago and flat at Old Navy vs. 3% growth a year ago.

Gap’s Q2 sales fell to $3.85 billion from $3.90 billion for the 2015 second quarter, with same-store sales down 2% for the period. Same-store sales were down 2% for the year-ago period as well.

Going forward, Gap expects to report adjusted earnings between 58 and 59 cents per share this year. This would come in well ahead of what nalysts had been looking for; earnings of 48 cents per share.

The company is expected to report financial results for the 2016 second quarter after the market close on August 18.

Disclaimer: We have no position in Gap Inc. (NYSE: GPS) and have not been compensated for this article.