Earnings Outlook: What to watch for in Gap earnings

Gap Inc. is scheduled to report second-quarter earnings on Thursday after the closing bell.

The retailer reported second-quarter sales last week of $3.85 billion, down from $3.90 billion last year. The FactSet consensus was $3.77 billion. The Gap and Banana Republic brands reported same-store sales declines while Old Navy same-store sales were flat.

See also:Gap July comparable sales fall more than expected

Analysts expect the retailer to experience continued challenges, in part due to its merchandise.

Gap GPS, -0.98% shares have an average hold rating with a $22.18 price target, more than 12% less than the $25.29 closing price on Monday.

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