Gap shares were halted Thursday morning after its quarterly earnings results were apparently released early. The apparel retailer is set to post second-quarter earnings after the closing bell Thursday. But Bloomberg reported that a presentation showing the results briefly appeared on Gap’s website in the morning. The earnings no longer appeared to be posted on Gap’s site when the stock was halted just before 10 a.m. ET.
Shares were down nearly 1% before the trading pause. Gap did not immediately respond to a request for comment. Gap’s earnings come as CEO Richard Dickson, who took the helm last year, tries to lead a sales turnaround at the legacy retailer. The company showed early positive signs in its first quarter when it posted comparable sales growth at all four of its brands – Gap, Banana Republic, Athleta, and Old Navy.
Investors are watching a jammed week of retail earnings for signs of whether consumer spending is slowing down in the second half of the year. Dollar General shares plummeted on Thursday morning after the discount retailer slashed its sales and profit outlook, citing in part “financially constrained” lower-income consumers. Both American Eagle Outfitters and Best Buy showed progress in boosting profits when they reported earnings Thursday. But the apparel retailer gave a muted outlook for its second half, while the electronics giant is still working to return to sales growth. Lululemon and Ulta Beauty are also due to post results after the bell Thursday.
The unexpected early release of Gap’s quarterly earnings had a negative impact on its shares. The market reacted with a slight drop, indicating some uncertainty among investors. This incident comes at a crucial time for CEO Richard Dickson as he navigates the company through a sales turnaround. The retail sector as a whole is also facing challenges, with some companies like Dollar General revising their outlook downwards. It will be interesting to see how Gap recovers from this incident and whether it will affect consumer confidence in the brand.