Unfortunately, it’s more bad news for Banana Republic.
The company, which reported that comparable sales were down 12% for the third quarter of fiscal 2015, reported even worse results for November. Comparable sales were down 19%.
On a recent earnings call, Gap Inc. CEO Art Peck expressed he was frustrated with the retailer.
“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.”
A recent visit to Banana Republic showed why the brand is faltering.
First, there are ample sales. Promotions condition consumers to never pay full price, meaning retailers can struggle to wean customers off them.
Banana Republic prides itself on selling “updated classics with a twist,” as Peck put it on the call.
Some of the items seem to be wild, however.
If the “twist” is this shade of green, it’s not resonating with customers.
But two key problems might be out of the brand’s control.
First, Consumers are spending less on apparel and more on electronics, healthcare, and home goods.
And warmer-than-usual fall weather could have also presented a challenge, because customers don’t want to buy coats and scarves.
The brand is currently working to retool designs for consumer preferences.
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