Gap Inc. on Thursday reported fourth-quarter sales that fell short of analysts’ expectations, underscoring the significant challenges that lie ahead for the apparel retailer’s new chief executive officer..
Comparable sales declined 3% during the period, a steeper drop than the 2.2%decrease predicted by analysts polled by FactSet, and marking the company’s eighth consecutive quarter of comparable sales declines. Total net sales also missed estimates, coming in at $4.5 billion, compared with the $4.57 billion analysts had anticipated. .
Gap’s sales woes come as the company grapples with a number of issues, including intense competition from fast-fashion rivals such as H&M and Zara, changing consumer preferences, and a difficult retail environment. The company has also been plagued by management turnover in recent years, with former CEO Art Peck stepping down abruptly last fall..
Sonia Syngal, who took over as CEO in February, acknowledged the challenges facing the company during a conference call with analysts on Thursday. She said that Gap is .
