Earnings Outlook: Gap earnings: A facility fire has near-term benefits

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Analysts wonder whether merchandise at Gap and Banana Republic is starting to appeal to consumers.

Gap Inc. is expected to report third-quarter earnings on Thursday after the markets close.

The struggling retailer, whose brands include the namesake Gap stores, Banana Republic and Old Navy, reported a third-quarter same-store sales decline of 3%, including a two-percentage-point negative impact from an August fire at its Fishkill, N.Y., distribution facility that destroyed about 25% of the building.

Analysts actually see the fire as a good thing, though many believe long-term pressures persist.

See also: Even a Gap facility fire can’t extinguish bullish analysts’ optimism

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