Banana Republic Sales Continue To Tank In November

Gap Inc. CEO Art Peck expressed his continued frustration with the company on an earnings call.

“I am very disappointed by the deceleration that we have seen, particularly with Banana in the back half,” he said on the call.¬†“That’s been a real disappointment to me, and a bit of a surprise.”

Banana Republic prides itself on selling “updated classics with a twist,” Peck said on a call.

The company is currently facing two issues outside of its control. First, consumers are spending less on apparel and more on electronics, healthcare, and home goods.

Second, warmer-than-usual fall weather could have also presented a challenge as customers have delayed purchasing new coats, scarves, and other cold weather clothing.

Banana Republic is working to redesign its selection to match changing customer tastes.

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Written by Jeff Springer

Jeff Springer

Jeff Spring is the Finance & Markets Editor at BusinessPundit.com. He's currently spending his days backpacking across Europe. While he may be living outside of the United States, he stays connected to American financial markets and M&A's more than is probably healthy for any single person. His love of a good book and a Bloomberg terminal can't be understated. He can be reached at JeffSpringer@BusinessPundit.com

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