Gap is closing down all of its UK Banana Republic stores
Gap has said it will be closing all eight of its Banana Republic stores in the UK as part of a global re-evaluation.
The retailer will be focusing its attention on North America, after announcing in May that it was reassessing the overseas presence of Banana Republic, which has suffered falling sales. Net sales in its European division fell 15 per cent to $17m in its most recently reported quarter.
Banana Republic opened its first UK store in 2008 on London's Regent Street.
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Most of the UK locations will be closed down by the end of the fiscal year, though shoppers will still be able to order items from the chain’s regional website. The chain still has one store in France and another in Italy.
Chief financial officer Sabrina Simmons had said Gap planned to close stores that weren’t performing well and work on streamlining the brand’s operating model.
It was also announced in May that all 53 Old Navy stores in Japan would be closing down this year, as part of Gap’s international strategy. The chain had been struggling to compete against local brands.
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Gap lowered its full-year earnings forecasts in August, expecting adjusted earnings per share of $1.87-$1.92 for this year, down from its previous guidance of $2.20 to $2.25.