Dive Brief:
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Rather than the expected increase of 1%, sales at Gap stores open at least a year fell 7% last month compared to a 3% gain last year, the company reported.
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The company blamed the unexpected fall on weather in the American northeast and Japan.
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The company also announced 450 global store closures, which were also attributed to weather-based performance.
Dive Insight:
Gap has been working hard to recover from struggles over the past few years, making improvements to its merchandise and closing underperforming stores. The weather apparently continues to buffet the clothing retailer, but company officials remain gamely optimistic that its troubles are merely temporary. While stocks fell on the report of the unexpected drop in sales, many observers do remain optimistic about its long-term prospects.