Adrienne Yih, Analyst, Barclays says, Gap’s earnings per share is likely to decline 142.86 per cent in Q4 FY 2021. According to the Zacks Consensus Estimate, the company will generate sales of $4.53 billion for the fourth quarter of 2021, up 2.46 per cent from the year-ago period. As per a Womans Wear Daily report, Barclays has lowered its 2021 fourth-quarter stock price target for Gap to $15, from last year being targeted at $28. The company’s stock and image have been impacted by several factors like frequent changes in management and products. Its stock dropped 4 points in pre-market trading after Barclays lowered its rating to “equal weight” from “overweight” and closed Thursday at $17.11, down 3.2 percent, or $0.5,7 from Wednesday’s closing of $17.68.

Yih cites deeper promotions at Gap Inc.’s Old Navy, Gap and Athleta brands and the corporation’s exposure to households with incomes under $75,000, as reasons for this decline. Barclays also noted that Gap Inc. this year won’t have the benefit of last year’s government stimulus checks, a headwind facing all retailers. Its third-quarter net sales of $3.9 billion declined by 1 percent compared to 2019 with supply chain disruption driving an estimated 8 percentage point negative impact due to constrained inventory. Comparable sales increased by 5 percent from 2019.