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Gap Inc.’s Stock Rises Despite A Fall In October Sales

November 16, 2016

Via: Forbes
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Investors seem to think that a small sales drop is better than a big one. Apparently this is the reason behind a rally in Gap Inc‘s share price since the time the company reported its October sales and its earnings guidance for the third quarter.

The company reported a 1% drop in same-store sales for October, citing a negative impact of three percentage points from the August fire in one of its distribution centers. What is encouraging for the investors is that the fall in comps is primarily caused by the fire, and if that event had not occurred, the company would have reported a positive 2% growth in same-store sales.

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