The Gap, Inc. (NYSE:GAP) was among the stocks Jim Cramer was focused on, as he discussed Mad Money’s latest game plan for the week.
Cramer showed mixed feelings about the stock, as he commented: What… happened to the stock of GAP today?
Last night, the retailer reported a mixed quarter. Gap brand’s doing well, but Old Navy did a little worse than anticipated, while Banana Republic and Athleta also missed expectations. The reason the stock plunged over 50% today, though, is that Gap gave soft revenue guidance for the current quarter because of weakness in the Old Navy division.
It’s the largest division, and the company cut its full-year sales forecast even as they raised their earnings outlook. Now, the stock is now back to where it was in late 2023, which was just a couple of months after CEO Richard Dickson took over and started to orchestrate a real turnaround. So what do we do now with the stock?