- Gap (NYSE:GPS) announces a series of new initiatives after a top to bottom review by management.
- The company plans to eliminate 175 stores in North America over the next few years with approximately 140 forecast to be shuttered this year.
- Gap Outlet and Gap Factory Stores will not be included in the reduction plan.
- 250 workers at Gap's headquarters will see their positions slashed.
- The company estimates lost sales of $300M per year and one-time costs of $140M-$160M, including $55M-$75M in non-cash costs.
- Savings benefits start to kick in during 2016 at $25M per year.
- Gap's sales this year have been sluggish with the exception of the Old Navy brand.
- GPS +0.8% after hours to $38.50.