LONDON (Brand Republic) - Clothing retailer Gap will shift its marketing spend from direct mail to TV advertising, following a 34% drop in net income in the last financial year.
Despite blaming a continual trend of weak sales for the fourth-quarter plunge of $271.8m (£188.11), the company surpassed analysts’ estimates. However, it warned earnings for the first quarter of this year could drop to between 10 and 15 cents a share -- well below expectations of 20 cents.
Slower consumer spending, unappealing fashions, dull marketing and too-fast growth were also blamed for slumps across the Gap, Old Navy and Banana Republic chains.
Gap’s share price has fallen 4.3% to $26.07 (£18.04).