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Gap Inc. on Thursday slashed its profit guidance for the full year as it reported a decline in fiscal first-quarter sales, which were dragged down by its Old Navy business.
An imbalanced mix of clothing sizes, ongoing inventory delays and an uptick in price-lowering promotions put a dent in Old Navy’s performance during the quarter.
The lower-income consumer, which is Old Navy’s target customer, is starting to feel pinched by inflation, Chief Executive Officer Sonia Syngal told CNBC. Shoppers also have quickly shifted from buying up active clothes and fleece hoodies — Old Navy’s “sweet spot” — to looking for party dresses and office clothes, she said in a phone interview.
“We’re…
Source cnbc.com
