Photo: The Deal Sleuth
Eddie Lampert, the chairman of ESL Investments and Sears, recently invested close to $800 million in Gap Inc. giving him a 5.8% stake in the company. Today Gap posted one of the biggest and only losses for February same-store sales.It came in way below estimates with a 3% slide attributed to weak sales traffic in the Midwest.
Sales at Banana Republic and Old Navy were down 4% for the month and Gap stores in North America dropped 1%. International sales also dropped by 7%.
The company had seen a rebound in sales in January after seven months of sales decline. The stock also shot up 6% when Lampert’s investment became known.
The Gap released a statement today saying February represents only a small part of revenue performance for the year.
The stock is down more than 2% today.